Ardelyx Inc. (NASDAQ: ARDX) stock jumped 1.27% on Monday to $3.18 against a previous-day closing price of $3.14. With 5.64 million shares changed hands, the volume of the stock remained lighter than its average volume of 10.84 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $3.2700 whereas the lowest price it dropped to was $3.0617. The 52-week range on ARDX shows that it touched its highest point at $3.43 and its lowest point at $0.49 during that stretch. It currently has a 1-year price target of $5.52. Beta for the stock currently stands at 1.16.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ARDX was up-trending over the past week, with a rise of 0.63%, but this was up by 70.05% over a month. Three-month performance surged to 125.53% while six-month performance rose 341.54%. The stock gained 253.22% in the past year, while it has gained 11.58% so far this year. A look at the trailing 12-month EPS for ARDX yields -0.85 with Next year EPS estimates of -0.40. For the next quarter, that number is -0.00. This implies an EPS growth rate of -44.20% for this year and 23.10% for next year. EPS is expected to grow by 30.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.50%.
Float and Shares Shorts:
At present, 187.46 million ARDX shares are outstanding with a float of 182.26 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.94 million, which was 5.14% higher than short shares on Sep 14, 2022. In addition to Mr. Michael G. Raab as the firm’s Pres, CEO & Director, Mr. Justin A. Renz CPA, M.S.T., MBA, MST serves as its CFO & Treasurer.
Through their ownership of 35.17% of ARDX’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.09% of ARDX, in contrast to 32.03% held by mutual funds. Shares owned by individuals account for 13.75%. As the largest shareholder in ARDX with 7.93% of the stake, Deep Track Capital LP holds 14,858,000 shares worth 14,858,000. A second-largest stockholder of ARDX, Millennium Management LLC, holds 9,930,548 shares, controlling over 5.30% of the firm’s shares. Janus Henderson Investors US LLC is the third largest shareholder in ARDX, holding 8,253,378 shares or 4.40% stake. With a 2.81% stake in ARDX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,265,872 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.44% of ARDX stock, is the second-largest Mutual Fund holder. It holds 2,703,765 shares valued at 7.71 million. Janus Henderson Horizon Fund – Bi holds 0.85% of the stake in ARDX, owning 1,597,158 shares worth 4.55 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ARDX since 7 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ARDX analysts setting a high price target of $8.00 and a low target of $3.00, the average target price over the next 12 months is $5.75. Based on these targets, ARDX could surge 151.57% to reach the target high and fall by -5.66% to reach the target low. Reaching the average price target will result in a growth of 80.82% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ARDX will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$0.38 being high and -$0.70 being low. For ARDX, this leads to a yearly average estimate of -$0.51. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ardelyx Inc. surprised analysts by $0.03 when it reported -$0.14 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.10 and the low estimate is -$0.17. The average estimate for the next quarter is thus $0.00.
Summary of Insider Activity:
Insiders traded ARDX stock several times over the past three months with 10 Buys and 23 Sells. In these transactions, 1,336,325 shares were bought while 17,074 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 74 over the past year. The total number of shares bought during that period was 2,066,000 while 613,626 shares were sold.