Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) stock fell -1.46% on Wednesday to $10.81 against a previous-day closing price of $10.97. With 2.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.45 million shares. The 52-week range on IRWD shows that it touched its highest point at $12.66 and its lowest point at $9.73 during that stretch. It currently has a 1-year price target of $12.75. Beta for the stock currently stands at 0.95.
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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 IRWD was up-trending over the past week, with a rise of 5.88%, but this was up by 2.66% over a month. Three-month performance dropped to -6.33% while six-month performance fell -5.59%. The stock lost -4.93% in the past year, while it has lost -12.75% so far this year. A look at the trailing 12-month EPS for IRWD yields 1.00 with Next year EPS estimates of 1.07. For the next quarter, that number is 0.25. This implies an EPS growth rate of -70.00% for this year and 1.23% for next year.
Float and Shares Shorts:
At present, 154.45 million IRWD shares are outstanding with a float of 150.89 million shares on hand for trading. On May 14, 2023, short shares totaled 16.56 million, which was 10.66% higher than short shares on Apr 13, 2023. In addition to Ms. Julie H. McHugh as the firm’s Exec. Chairman, Mr. Thomas A. McCourt serves as its CEO & Director.
Through their ownership of 112.77% of IRWD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.04% of IRWD, in contrast to 46.80% held by mutual funds. Shares owned by individuals account for 22.49%. As the largest shareholder in IRWD with 14.41% of the stake, BlackRock Fund Advisors holds 22,213,467 shares worth 22,213,467. A second-largest stockholder of IRWD, Sarissa Capital Management LP, holds 16,390,000 shares, controlling over 10.63% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in IRWD, holding 14,572,162 shares or 9.45% stake. With a 7.07% stake in IRWD, the Vanguard Health Care Fund is the largest stakeholder. A total of 10,902,066 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 6.27% of IRWD stock, is the second-largest Mutual Fund holder. It holds 9,662,753 shares valued at 100.59 million. SPDR S&P Biotech ETF holds 3.48% of the stake in IRWD, owning 5,358,787 shares worth 55.78 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, IRWD reported revenue of $97.23M and operating income of $55.66M. The EBITDA in the recently reported quarter was $56.52M and diluted EPS was $0.21.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IRWD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With IRWD analysts setting a high price target of $19.00 and a low target of $9.00, the average target price over the next 12 months is $14.33. Based on these targets, IRWD could surge 75.76% to reach the target high and fall by -16.74% to reach the target low. Reaching the average price target will result in a growth of 32.56% 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.
Summary of Insider Activity:
Insiders traded IRWD stock several times over the past three months with 9 Buys and 20 Sells. In these transactions, 606,841 shares were bought while 210,861 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 1,165,530 while 773,759 shares were sold.