Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) stock fell -2.11% on Friday to $8.34 against a previous-day closing price of $8.52. With 12.94 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.18 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $8.53 whereas the lowest price it dropped to was $8.22. The 52-week range on IRWD shows that it touched its highest point at $12.66 and its lowest point at $8.07 during that stretch. It currently has a 1-year price target of $14.67. Beta for the stock currently stands at 0.96.
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 1.09%, but this was down by -14.55% over a month. Three-month performance dropped to -24.39% while six-month performance fell -20.34%. The stock lost -24.52% in the past year, while it has lost -32.69% so far this year. A look at the trailing 12-month EPS for IRWD yields -6.04 with Next year EPS estimates of 0.74. For the next quarter, that number is 0.16. This implies an EPS growth rate of -70.00% for this year and 112.80% for next year.
Float and Shares Shorts:
At present, 155.37 million IRWD shares are outstanding with a float of 153.57 million shares on hand for trading. On Aug 30, 2023, short shares totaled 15.5 million, which was 9.94% higher than short shares on Jul 30, 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 105.26% of IRWD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.18% of IRWD, in contrast to 52.11% held by mutual funds. Shares owned by individuals account for 22.29%. As the largest shareholder in IRWD with 14.41% of the stake, BlackRock Fund Advisors holds 22,486,732 shares worth 22,486,732. A second-largest stockholder of IRWD, Sarissa Capital Management LP, holds 16,390,000 shares, controlling over 10.50% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in IRWD, holding 14,510,522 shares or 9.30% stake. With a 6.12% stake in IRWD, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,540,683 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 4.01% of IRWD stock, is the second-largest Mutual Fund holder. It holds 6,260,187 shares valued at 55.09 million. Vanguard Total Stock Market ETF holds 2.63% of the stake in IRWD, owning 4,098,666 shares worth 36.07 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 Jun 29, 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 $20.00 and a low target of $9.00, the average target price over the next 12 months is $14.67. Based on these targets, IRWD could surge 139.81% to reach the target high and rise by 7.91% to reach the target low. Reaching the average price target will result in a growth of 75.9% 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 7 Buys and 2 Sells. In these transactions, 156,450 shares were bought while 9,021 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 937,296 while 487,747 shares were sold.