Zacks Investment Research cut shares of Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) from a hold rating to a sell rating in a report published on Tuesday.

According to Zacks, “Ironwood’s key marketed drug, Linzess has blockbuster potential, if approved for additional indications. We are also encouraged by Ironwood's partnership deals for the development and commercialization of Linzess in different territories. However, Ironwood is dependent on Linzess for growth. Notably, any Linzess-related pipeline/regulatory setbacks would weigh heavily on the stock, given that the rest of its pipeline is mostly mid-stage in nature. Moreover, Linzess' target market has quite a few players, with other companies working on bringing new products to market.”

Analyst Recommendations for Ironwood Pharmaceuticals (NASDAQ:IRWD)

Other equities analysts have also recently issued research reports about the stock. Cowen and Company reissued a buy rating on shares of Ironwood Pharmaceuticals in a research report on Thursday, May 26th. Mizuho lifted their target price on shares of Ironwood Pharmaceuticals from $16.00 to $24.00 and gave the stock a buy rating in a research report on Friday, July 15th. Barclays PLC lifted their target price on shares of Ironwood Pharmaceuticals from $11.00 to $12.00 and gave the stock an equal weight rating in a research report on Friday, August 5th. Leerink Swann reaffirmed a market perform rating and issued a $14.00 price target (up previously from $10.00) on shares of Ironwood Pharmaceuticals in a report on Monday, August 8th. Finally, Wedbush reaffirmed a neutral rating and issued a $10.00 price target on shares of Ironwood Pharmaceuticals in a report on Thursday, August 4th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the stock. Ironwood Pharmaceuticals currently has an average rating of Hold and a consensus target price of $15.20.

Shares of Ironwood Pharmaceuticals (NASDAQ:IRWD) opened at 15.87 on Tuesday. The firm’s market cap is $2.31 billion. Ironwood Pharmaceuticals has a one year low of $7.35 and a one year high of $16.11. The firm has a 50 day moving average price of $13.88 and a 200-day moving average price of $12.40.

Ironwood Pharmaceuticals (NASDAQ:IRWD) last posted its earnings results on Thursday, August 4th. The company reported ($0.16) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.15) by $0.01. Ironwood Pharmaceuticals had a negative return on equity of 94.75% and a negative net margin of 45.21%. The firm had revenue of $54.40 million for the quarter, compared to the consensus estimate of $54.49 million. During the same period in the prior year, the business earned ($0.34) EPS. Ironwood Pharmaceuticals’s quarterly revenue was up 96.4% compared to the same quarter last year. Analysts forecast that Ironwood Pharmaceuticals will post ($0.75) earnings per share for the current year.

In related news, Director Lawrence S. Olanoff sold 3,200 shares of the company’s stock in a transaction on Tuesday, September 6th. The shares were sold at an average price of $13.72, for a total value of $43,904.00. Following the completion of the transaction, the director now directly owns 29,305 shares in the company, valued at $402,064.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 7.17% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP increased its stake in Ironwood Pharmaceuticals by 0.4% in the first quarter. Wellington Management Group LLP now owns 17,843,324 shares of the company’s stock valued at $195,206,000 after buying an additional 65,114 shares in the last quarter. Bridger Management LLC acquired a new stake in Ironwood Pharmaceuticals during the first quarter valued at $56,654,000. Sector Gamma AS increased its stake in Ironwood Pharmaceuticals by 25.9% in the first quarter. Sector Gamma AS now owns 2,486,757 shares of the company’s stock valued at $27,205,000 after buying an additional 512,336 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Ironwood Pharmaceuticals by 69.2% in the first quarter. Goldman Sachs Group Inc. now owns 190,274 shares of the company’s stock valued at $2,082,000 after buying an additional 77,802 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in Ironwood Pharmaceuticals by 0.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 3,229,012 shares of the company’s stock valued at $35,325,000 after buying an additional 9,050 shares in the last quarter. Institutional investors own 93.96% of the company’s stock.

About Ironwood Pharmaceuticals

Ironwood Pharmaceuticals, Inc is a biotechnology company. The Company’s products Linaclotide provides patients and healthcare practitioners with a treatment option for adults in the United States and certain other countries with irritable bowel syndrome with constipation (IBS-C), chronic idiopathic constipation (CIC) and gastrointestinal (GI) disorders.

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