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 changing hands.

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

Wall Street Analysts Forecast Growth

ARDX has been the subject of a number of research analyst reports. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Ardelyx in a research note on Friday, January 12th. Leerink Partnrs reaffirmed an “outperform” rating on shares of Ardelyx in a research note on Friday, April 5th. Wedbush raised their price objective on shares of Ardelyx from $14.00 to $15.00 and gave the stock an “outperform” rating in a report on Friday. Citigroup upped their target price on Ardelyx from $13.00 to $14.00 and gave the stock a “buy” rating in a report on Friday. Finally, Raymond James increased their target price on Ardelyx from $12.00 to $15.00 and gave the stock a “strong-buy” rating in a research report on Tuesday, January 9th. One research analyst has rated the stock with a sell rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $12.81.

Insider Transactions at Ardelyx

In other news, insider David P. Rosenbaum sold 15,344 shares of the stock in a transaction on Thursday, February 8th. The stock was sold at an average price of $9.18, for a total value of $140,857.92. Following the sale, the insider now directly owns 384,002 shares of the company’s stock, valued at $3,525,138.36. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. In other news, insider David P. Rosenbaum sold 15,344 shares of the company’s stock in a transaction that occurred on Thursday, February 8th. The shares were sold at an average price of $9.18, for a total value of $140,857.92. Following the transaction, the insider now owns 384,002 shares in the company, valued at $3,525,138.36. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 transaction of $192,000.00. Following the sale, the chief executive officer now directly owns 1,310,933 shares of the company’s stock, valued at approximately $8,389,971.20. The disclosure for this sale can be found here. Insiders have sold a total of 178,820 shares of company stock valued at $1,400,524 in the last ninety days. 5.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. HighMark Wealth Management LLC bought a new position in shares of Ardelyx during the first quarter valued at $36,000. Willis Johnson & Associates Inc. purchased a new position in Ardelyx in the 3rd quarter worth about $41,000. SJS Investment Consulting Inc. bought a new position in Ardelyx during the 4th quarter valued at about $62,000. Sherbrooke Park Advisers LLC purchased a new stake in shares of Ardelyx during the 3rd quarter valued at about $63,000. Finally, Jump Financial LLC bought a new stake in shares of Ardelyx in the fourth quarter worth approximately $63,000. Hedge funds and other institutional investors own 58.92% of the company’s stock.

Ardelyx Price Performance

The stock has a market capitalization of $2.04 billion, a P/E ratio of -29.07 and a beta of 0.87. The business’s 50 day moving average price is $7.67 and its 200 day moving average price is $6.79. The company has a debt-to-equity ratio of 0.30, a current ratio of 4.88 and a quick ratio of 4.64.

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.