Ardelyx (NASDAQ:ARDX) Shares Gap Up – Here’s Why

Ardelyx, Inc. (NASDAQ:ARDX)’s share price gapped up prior to trading on Wednesday. The stock had previously closed at $3.03, but opened at $3.41. Ardelyx shares last traded at $3.1950, with a volume of 904,939 shares trading hands.

More Ardelyx News

Here are the key news stories impacting Ardelyx this week:

• Positive Sentiment: Third-quarter product revenue rose 19% year over year to $125.5 million, led by IBSRELA revenue growth of 23% to $96.3 million. Ardelyx reported break-even earnings per share, better than analysts’ expected loss, and maintained its full-year IBSRELA revenue guidance of $350 million to $370 million. The company also reported $285.3 million in cash and investments. Ardelyx Q3 financial results
• Positive Sentiment: Ardelyx completed enrollment ahead of schedule in a Phase 3 trial testing IBSRELA for chronic idiopathic constipation. Topline results are expected in the second half of 2027, offering a potential longer-term growth opportunity. Phase 3 trial enrollment update
• Negative Sentiment: Several law firms publicized a pending securities class action and the November 16 lead-plaintiff deadline. The lawsuit alleges Ardelyx overstated the effectiveness of its patient-access strategy while insurance prior-authorization and step-edit requirements slowed new-patient starts for IBSRELA and XPHOZAH. These are allegations, but the litigation and access concerns may weigh on sentiment. Class action deadline and allegations

Analyst Ratings Changes

ARDX has been the subject of several research reports. Zacks Research raised Ardelyx from a “strong sell” rating to a “hold” rating in a report on Friday, October 16th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Ardelyx in a report on Friday, September 25th. TD Cowen lowered their price objective on Ardelyx from $13.00 to $10.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Citigroup dropped their target price on Ardelyx from $14.00 to $11.00 and set a “buy” rating for the company in a report on Monday, August 10th. Finally, Wedbush reissued an “outperform” rating and issued a $9.00 target price on shares of Ardelyx in a research report on Tuesday, August 18th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $13.90.

Ardelyx Price Performance

The company’s fifty day moving average price is $3.40 and its 200 day moving average price is $5.29. The company has a market capitalization of $816.10 million, a P/E ratio of -14.95 and a beta of 0.79. The company has a quick ratio of 3.15, a current ratio of 3.34 and a debt-to-equity ratio of 1.69.

Ardelyx (NASDAQ:ARDX) last released its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.07) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.02). The business had revenue of $120.88 million during the quarter, compared to analyst estimates of $121.03 million. Ardelyx had a negative net margin of 12.35% and a negative return on equity of 36.00%. The firm’s quarterly revenue was up 34.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.08) earnings per share. As a group, sell-side analysts forecast that Ardelyx, Inc. will post -0.20 EPS for the current year.

Insider Transactions at Ardelyx

In other Ardelyx news, insider John Bishop sold 19,750 shares of Ardelyx stock in a transaction on Friday, August 21st. The stock was sold at an average price of $3.86, for a total value of $76,235.00. Following the completion of the transaction, the insider directly owned 317,095 shares of the company’s stock, valued at $1,223,986.70. The trade was a 5.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider James Brady sold 15,136 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $3.86, for a total value of $58,424.96. Following the sale, the insider owned 245,930 shares of the company’s stock, valued at approximately $949,289.80. The trade was a 5.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 126,059 shares of company stock worth $486,588. Corporate insiders own 5.30% of the company’s stock.

Institutional Investors Weigh In On Ardelyx

Large investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. bought a new position in Ardelyx in the 2nd quarter valued at about $35,000. Sterling Capital Management LLC raised its position in shares of Ardelyx by 842.7% in the 3rd quarter. Sterling Capital Management LLC now owns 8,088 shares of the biopharmaceutical company’s stock valued at $28,000 after buying an additional 7,230 shares in the last quarter. SCS Capital Management LLC bought a new stake in shares of Ardelyx during the 2nd quarter worth approximately $52,000. ADAR1 Capital Management LLC bought a new stake in shares of Ardelyx during the 2nd quarter worth approximately $56,000. Finally, PVG Asset Management Corp bought a new stake in shares of Ardelyx during the 1st quarter worth approximately $65,000. 58.92% of the stock is currently owned by institutional investors and hedge funds.

Ardelyx Company Profile

Ardelyx, Inc is a biopharmaceutical company focused on developing and commercializing therapies for gastrointestinal and cardiorenal diseases. The company’s platform is centered on regulating ion transport in the gut, with the goal of addressing conditions that are inadequately served by existing treatments.

Ardelyx’s marketed products include IBSRELA (tenapanor), an oral treatment for adults with irritable bowel syndrome with constipation, and XPHOZAH (tenapanor), a therapy designed to reduce serum phosphorus in adults with chronic kidney disease on dialysis who have an inadequate response to, or are intolerant of, phosphate binders.