Ironwood Pharmaceuticals (IRWD) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Ironwood Pharmaceuticals (NASDAQ:IRWD) from a hold rating to a sell rating in a report released on Wednesday morning.

According to Zacks, “Ironwood’s dependence on Linzess for growth is concerning. Performance of Linzess has been uneven, encouraging at times and falling below expectations at others based on customer buying patterns. Moreover, competition in CIC and IBS-C, Linzess’ target markets is intensifying. Any Linzess-related pipeline/regulatory setbacks will weigh heavily on the stock, as the rest of its pipeline is mostly mid-stage in nature. Also, the uptake of Zurampic, Ironwood’s second marketed drug, has been slow and expectations from new launched combination gout drug, Duzallo, are quite low. Investor focus should be on Ironwood’s pipeline updates. Shares have outperformed the industry so far this year. Estimates have remained stable lately ahead of the company’s Q1 earnings release. The company has a negative record of earnings surprises in recent quarters.”

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Other equities analysts also recently issued research reports about the company. BidaskClub upgraded Ironwood Pharmaceuticals from a hold rating to a buy rating in a research report on Tuesday, March 27th. ValuEngine upgraded Ironwood Pharmaceuticals from a sell rating to a hold rating in a research report on Monday, April 9th. Wells Fargo set a $18.00 price objective on Ironwood Pharmaceuticals and gave the company a buy rating in a research report on Monday, April 9th. Finally, Bank of America downgraded Ironwood Pharmaceuticals from a buy rating to an underperform rating and cut their price objective for the company from $20.00 to $15.00 in a research report on Friday, January 5th. Two research analysts have rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating to the company. Ironwood Pharmaceuticals presently has an average rating of Hold and a consensus price target of $18.13.

Shares of IRWD opened at $17.28 on Wednesday. The company has a current ratio of 4.72, a quick ratio of 4.71 and a debt-to-equity ratio of 40.25. Ironwood Pharmaceuticals has a 52-week low of $12.89 and a 52-week high of $19.94.

Ironwood Pharmaceuticals (NASDAQ:IRWD) last issued its quarterly earnings data on Thursday, February 15th. The biotechnology company reported ($0.14) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.18) by $0.04. Ironwood Pharmaceuticals had a negative return on equity of 2,073.20% and a negative net margin of 39.20%. The firm had revenue of $94.20 million during the quarter, compared to the consensus estimate of $88.86 million. During the same quarter in the previous year, the company posted ($0.12) EPS. The business’s revenue for the quarter was up 7.7% compared to the same quarter last year. equities research analysts anticipate that Ironwood Pharmaceuticals will post -0.46 EPS for the current year.

In other news, insider Mark G. Currie sold 60,000 shares of the business’s stock in a transaction on Wednesday, January 24th. The stock was sold at an average price of $15.45, for a total transaction of $927,000.00. Following the completion of the sale, the insider now owns 835,000 shares in the company, valued at $12,900,750. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Gina Consylman sold 3,594 shares of the business’s stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $14.66, for a total value of $52,688.04. Following the sale, the chief financial officer now owns 59,125 shares of the company’s stock, valued at approximately $866,772.50. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 66,728 shares of company stock valued at $1,024,732. 7.63% of the stock is currently owned by corporate insiders.

Hedge funds have recently added to or reduced their stakes in the company. Zurcher Kantonalbank Zurich Cantonalbank raised its position in shares of Ironwood Pharmaceuticals by 128.6% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,010 shares of the biotechnology company’s stock worth $135,000 after acquiring an additional 5,069 shares during the last quarter. Hemenway Trust Co LLC bought a new stake in shares of Ironwood Pharmaceuticals during the fourth quarter worth $204,000. Xact Kapitalforvaltning AB bought a new stake in shares of Ironwood Pharmaceuticals during the fourth quarter worth $220,000. Bailard Inc. bought a new stake in shares of Ironwood Pharmaceuticals during the fourth quarter worth $345,000. Finally, Millennium Management LLC bought a new stake in shares of Ironwood Pharmaceuticals during the fourth quarter worth $367,000.

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Ironwood Pharmaceuticals Company Profile

Ironwood Pharmaceuticals, Inc, a commercial biotechnology company, engages in the research, development, and commercialization of human therapeutic products. The company markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC) under the LINZESS name in the United States and CONSTELLA name in the European Union; and lesinurad for the treatment of hyperuricemia associated with uncontrolled gout in adults under the ZURAMPIC and DUZALLO names.

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