Ardelyx (NASDAQ:ARDX) Shares Gap Up After Strong Earnings

Shares of Ardelyx, Inc. (NASDAQ:ARDX) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $6.79, but opened at $8.36. Ardelyx shares last traded at $8.45, with a volume of 8,785,366 shares trading hands.

The biopharmaceutical company reported ($0.11) EPS for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.02. The business had revenue of $46.00 million for the quarter, compared to the consensus estimate of $36.40 million. Ardelyx had a negative net margin of 53.08% and a negative return on equity of 43.57%. The business’s revenue for the quarter was up 303.5% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.13) EPS.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Cantor Fitzgerald reiterated an “overweight” rating on shares of Ardelyx in a report on Friday, January 12th. SVB Leerink began coverage on shares of Ardelyx in a research note on Friday, April 5th. They issued an “outperform” rating and a $14.00 target price for the company. Raymond James boosted their price objective on Ardelyx from $12.00 to $15.00 and gave the stock a “strong-buy” rating in a report on Tuesday, January 9th. StockNews.com lowered Ardelyx from a “hold” rating to a “sell” rating in a research report on Monday, February 26th. Finally, Wedbush boosted their price objective on shares of Ardelyx from $14.00 to $15.00 and gave the company an “outperform” rating in a report on Friday. One equities research analyst has rated the stock with a sell rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Ardelyx has an average rating of “Moderate Buy” and an average price target of $12.81.

Insider Transactions at Ardelyx

In other news, CEO Michael Raab sold 30,000 shares of the firm’s stock in a transaction that occurred on Monday, April 29th. The shares were sold at an average price of $6.40, for a total value of $192,000.00. Following the sale, the chief executive officer now directly owns 1,310,933 shares in the company, valued at approximately $8,389,971.20. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In related news, CEO Michael Raab sold 30,000 shares of the firm’s stock in a transaction on Monday, April 29th. The stock was sold at an average price of $6.40, for a total transaction of $192,000.00. Following the sale, the chief executive officer now owns 1,310,933 shares of the company’s stock, valued at approximately $8,389,971.20. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Elizabeth A. Grammer sold 86,000 shares of the company’s stock in a transaction dated Wednesday, March 20th. The stock was sold at an average price of $7.73, for a total value of $664,780.00. Following the completion of the transaction, the insider now directly owns 312,993 shares of the company’s stock, valued at approximately $2,419,435.89. The disclosure for this sale can be found here. In the last quarter, insiders sold 178,820 shares of company stock valued at $1,400,524. Corporate insiders own 5.50% of the company’s stock.

Institutional Trading of Ardelyx

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. HighMark Wealth Management LLC acquired a new stake in Ardelyx during the 1st quarter valued at approximately $36,000. Willis Johnson & Associates Inc. bought a new position in Ardelyx during the third quarter worth $41,000. SJS Investment Consulting Inc. acquired a new position in Ardelyx in the fourth quarter valued at $62,000. Sherbrooke Park Advisers LLC bought a new stake in Ardelyx during the third quarter valued at $63,000. Finally, Jump Financial LLC bought a new stake in Ardelyx during the fourth quarter valued at $63,000. 58.92% of the stock is currently owned by institutional investors and hedge funds.

Ardelyx Stock Performance

The stock has a fifty day simple moving average of $7.67 and a two-hundred day simple moving average of $6.79. The company has a debt-to-equity ratio of 0.30, a quick ratio of 4.64 and a current ratio of 4.88. The stock has a market capitalization of $2.04 billion, a price-to-earnings ratio of -29.07 and a beta of 0.87.

Ardelyx Company Profile

Ardelyx, Inc, a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company's lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation.