Zacks Investment Research cut shares of Ironwood Pharmaceuticals (NASDAQ:IRWD) from a hold rating to a sell rating in a report released on Tuesday.
According to Zacks, “Ironwood’s dependence on Linzess for growth is concerning. Performance of Linzess has been uneven, encouraging at times and falling below expectations at others based on customer buying patterns. Moreover, competition in CIC and IBS-C, Linzess’ target markets is intensifying. Any Linzess-related pipeline/regulatory setbacks will weigh heavily on the stock, as the rest of its pipeline is mostly mid-stage in nature. Also, the uptake of Zurampic, Ironwood’s second marketed drug, has been slow and expectations from new launched combination gout drug, Duzallo, are quite low. Investor focus should be on Ironwood’s pipeline updates. Shares have underperformed the industry in the past one year. Loss estimates have been stable lately ahead of the company’s Q3 earnings release. The company has a mixed record of earnings surprises in recent quarters. “
Several other equities research analysts have also commented on the company. Bank of America lowered Ironwood Pharmaceuticals from a buy rating to an underperform rating and cut their price objective for the stock from $20.00 to $15.00 in a research note on Friday, January 5th. BidaskClub cut Ironwood Pharmaceuticals from a hold rating to a sell rating in a report on Saturday, December 30th. ValuEngine cut Ironwood Pharmaceuticals from a hold rating to a sell rating in a report on Friday, December 29th. Mizuho cut Ironwood Pharmaceuticals from a buy rating to a neutral rating and lowered their target price for the stock from $20.00 to $16.00 in a report on Wednesday, December 6th. Finally, Morgan Stanley restated a hold rating on shares of Ironwood Pharmaceuticals in a report on Monday, December 4th. Four research analysts have rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the company. The stock has an average rating of Hold and a consensus price target of $17.56.
Ironwood Pharmaceuticals (NASDAQ:IRWD) last posted its quarterly earnings data on Thursday, November 2nd. The biotechnology company reported ($0.18) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.25) by $0.07. Ironwood Pharmaceuticals had a negative return on equity of 645.22% and a negative net margin of 48.89%. The company had revenue of $86.80 million during the quarter, compared to analyst estimates of $73.59 million. During the same period in the previous year, the business earned ($0.18) EPS. Ironwood Pharmaceuticals’s quarterly revenue was up 31.3% on a year-over-year basis. analysts anticipate that Ironwood Pharmaceuticals will post -1.12 earnings per share for the current year.
In related news, CEO Peter M. Hecht sold 113,405 shares of the company’s stock in a transaction that occurred on Thursday, December 7th. The stock was sold at an average price of $15.12, for a total value of $1,714,683.60. Following the transaction, the chief executive officer now directly owns 4,696,917 shares in the company, valued at $71,017,385.04. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last 90 days, insiders have sold 115,769 shares of company stock worth $1,752,491. Insiders own 7.63% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Ameritas Investment Partners Inc. lifted its holdings in Ironwood Pharmaceuticals by 5.8% in the second quarter. Ameritas Investment Partners Inc. now owns 11,821 shares of the biotechnology company’s stock valued at $223,000 after acquiring an additional 648 shares during the last quarter. Amalgamated Bank lifted its holdings in Ironwood Pharmaceuticals by 9.0% in the second quarter. Amalgamated Bank now owns 17,280 shares of the biotechnology company’s stock valued at $326,000 after acquiring an additional 1,421 shares during the last quarter. Virtu KCG Holdings LLC lifted its holdings in Ironwood Pharmaceuticals by 10.3% in the second quarter. Virtu KCG Holdings LLC now owns 15,740 shares of the biotechnology company’s stock valued at $297,000 after acquiring an additional 1,470 shares during the last quarter. Legal & General Group Plc lifted its holdings in Ironwood Pharmaceuticals by 5.0% in the second quarter. Legal & General Group Plc now owns 47,773 shares of the biotechnology company’s stock valued at $900,000 after acquiring an additional 2,265 shares during the last quarter. Finally, Oppenheimer & Co. Inc. lifted its holdings in Ironwood Pharmaceuticals by 11.8% in the third quarter. Oppenheimer & Co. Inc. now owns 34,000 shares of the biotechnology company’s stock valued at $536,000 after acquiring an additional 3,600 shares during the last quarter.
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About Ironwood Pharmaceuticals
Ironwood Pharmaceuticals, Inc is a biotechnology company. The Company is advancing product opportunities in areas of unmet need, including irritable bowel syndrome with constipation (IBS C), and chronic idiopathic constipation (CIC), hyperuricemia associated with uncontrolled gout, uncontrolled gastroesophageal reflux disease (uncontrolled GERD), and vascular and fibrotic diseases.
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