Ardelyx (NASDAQ:ARDX) Shares Gap Up on Earnings Beat

Ardelyx, Inc. (NASDAQ:ARDX) gapped up prior to trading on Friday following a better than expected earnings announcement. 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, beating the consensus estimate of ($0.13) by $0.02. Ardelyx had a negative net margin of 41.36% and a negative return on equity of 41.03%. The business had revenue of $46.00 million during the quarter, compared to analysts’ expectations of $36.40 million. During the same period last year, the business earned ($0.13) earnings per share. The firm’s revenue was up 303.5% on a year-over-year basis.

Analysts Set New Price Targets

A number of research firms have commented on ARDX. Citigroup lifted their price objective on shares of Ardelyx from $13.00 to $14.00 and gave the stock a “buy” rating in a research report on Friday. SVB Leerink began coverage on shares of Ardelyx in a research report on Friday, April 5th. They set an “outperform” rating and a $14.00 price objective for the company. StockNews.com cut shares of Ardelyx from a “hold” rating to a “sell” rating in a research report on Monday, February 26th. Raymond James lifted their price objective on shares of Ardelyx from $12.00 to $15.00 and gave the stock a “strong-buy” rating in a research report on Tuesday, January 9th. Finally, Piper Sandler lifted their price objective on shares of Ardelyx from $12.00 to $15.00 and gave the stock an “overweight” rating in a research report on Friday, February 23rd. One equities research analyst has rated the stock with a sell rating, eight have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $12.81.

Insider Transactions at Ardelyx

In related news, CEO Michael Raab sold 30,000 shares of the business’s stock in a transaction dated Monday, April 29th. The stock was sold at an average price of $6.40, for a total value of $192,000.00. Following the completion of the transaction, the chief executive officer now owns 1,310,933 shares of the company’s stock, valued at $8,389,971.20. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, CEO Michael Raab sold 30,000 shares of the 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 owns 1,310,933 shares in the company, valued at approximately $8,389,971.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Elizabeth A. Grammer sold 86,000 shares of Ardelyx stock in a transaction that occurred on Wednesday, March 20th. The shares were sold at an average price of $7.73, for a total transaction of $664,780.00. Following the completion of the transaction, the insider now directly owns 312,993 shares in the company, valued at $2,419,435.89. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 178,820 shares of company stock valued at $1,400,524. 5.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ardelyx

Institutional investors have recently modified their holdings of the business. Principal Financial Group Inc. boosted its stake in Ardelyx by 347.4% in the first quarter. Principal Financial Group Inc. now owns 122,811 shares of the biopharmaceutical company’s stock valued at $897,000 after buying an additional 95,361 shares in the last quarter. China Universal Asset Management Co. Ltd. lifted its holdings in shares of Ardelyx by 66.7% in the first quarter. China Universal Asset Management Co. Ltd. now owns 44,754 shares of the biopharmaceutical company’s stock worth $327,000 after acquiring an additional 17,903 shares during the last quarter. HighMark Wealth Management LLC acquired a new stake in shares of Ardelyx in the 1st quarter valued at approximately $36,000. Newbridge Financial Services Group Inc. bought a new stake in shares of Ardelyx during the 1st quarter valued at approximately $64,000. Finally, Hennion & Walsh Asset Management Inc. grew its holdings in shares of Ardelyx by 37.2% during the 1st quarter. Hennion & Walsh Asset Management Inc. now owns 438,827 shares of the biopharmaceutical company’s stock valued at $3,203,000 after purchasing an additional 118,879 shares during the last quarter. Institutional investors and hedge funds own 58.92% of the company’s stock.

Ardelyx Stock Up 28.4 %

The company has a market capitalization of $2.04 billion, a P/E ratio of -31.14 and a beta of 0.87. 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 firm’s fifty day moving average is $7.67 and its 200-day moving average is $6.81.

About Ardelyx

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.