Growing Through Challenges? – Ironwood Pharmaceuticals Inc. (IRWD)


    Wellington Management Co. LLP recently announced the acquisition of new stake in Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD). The institutional investor has increased its shareholding in the Healthcare company by 0.70% to 22.22 million shares with purchase of 0.15 million shares. This fresh investment now brings its stake to 13.94% valued currently at $203.75 million. In addition, Brown Capital Management LLC raised its holdings by 0.84 million to 18.8 million shares. And Sarissa Capital Management LP has lifted its position by 3.81% or 0.52 million shares – to 14.04 million shares.

    With over 1.09 million Ironwood Pharmaceuticals Inc. (IRWD) shares trading Tuesday and a closing price of $9.78 on the day, the dollar volume was approximately $10.64 million. The shares have shown a negative weekly performance of -7.65% and its price on 09/01/20 lost nearly -3.17%. Currently, there are 159.41M common shares owned by the public and among those 155.30M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 6 analysts who have offered their price forecasts for IRWD have a consensus price objective of $12.33. The analysts have set the share’s price value over the next 12 months at a high of $14.00 and a low of $11.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Ironwood Pharmaceuticals Inc. stock is 2.70 for the next 12 months. The average price target is 19.84% above its last price level and an upside to the estimated low will see the stock gain 11.09% over that period. But an upside of 30.14% will see the stock hit the forecast high price target while mean target price for the stock is $12.00.

    Insiders at the company have transacted a total of 64 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 26 of these insider trades were purchases, accounting for 1,004,298 shares. Insider sales of the common stock occurred on 38 occasions, with total insider shares sold totaling 237,508 shares.

    The top 3 mutual fund holders in Ironwood Pharmaceuticals Inc. are Vanguard Health Care Fund, Brown Capital Management – Small, and SPDR S&P Biotech ETF. Vanguard Health Care Fund owns 10.9 million shares of the company’s stock, all valued at over $99.97 million. SPDR S&P Biotech ETF sold 53865.0 shares to bring its total holdings to over 5.38 million shares at a value of $49.29 million. SPDR S&P Biotech ETF now owns shares totaling to 3.37% of the shares outstanding.

    Shares of Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) opened at $10.07, down -$0.03 from a prior closing price of $10.10. However, the script later closed the day at $9.78, down -3.17%. The company’s stock has a 5-day price change of -7.65% and -2.69% over the past three months. IRWD shares are trading -26.52% year to date (YTD), with the 12-month market performance up to 5.50% higher. It has a 12-month low price of $7.91 and touched a high of $14.10 over the same period. Currently, 1.09 million shares have been traded, compared to an average intraday trading volume of 2.09 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.30%, -2.77%, and -11.41% respectively.

    Institutional ownership of Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) 159.41M shares outstanding. Mutual fund holders own 56.20%, while other institutional holders and individual stakeholders account for 57.32% and 10.24% respectively.

    It has a market capitalization of $1.58B and a beta (3y monthly) value of 1.47. The stock’s trailing 12-month PE ratio is 15.88, while the earnings-per-share (ttm) stands at $0.62. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.36% over the week and 3.78% over the month.

    Analysts forecast that Ironwood Pharmaceuticals Inc. (IRWD) will achieve an EPS of $0.15 for the current quarter, $0.17 for the next quarter and $0.64 for 2021. The lowest estimate earnings-per-share for the quarter is $0.13 while analysts give the company a high EPS estimate of $0.18. Comparatively, EPS for the current quarter was $0.4 a year ago. Earnings per share for the fiscal year are expected to increase by 129.70%, and 22.29% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 6 brokerage firm advisors rate Ironwood Pharmaceuticals Inc. (IRWD) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 4 of the 6 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the IRWD, a number of firms have released research notes about the stock. Northland Capital stated their Outperform rating for the stock in a research note on June 17, 2020, with the firm’s price target at $14. Credit Suisse coverage for the Ironwood Pharmaceuticals Inc. (IRWD) stock in a research note released on July 10, 2019 offered a Neutral rating with a price target of. Morgan Stanley was of a view on March 27, 2019 that the stock is Equal-Weight, while H.C. Wainwright gave the stock Neutral rating on February 25, 2019, issuing a price target of $14. JP Morgan on their part issued Neutral rating on January 24, 2019.


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