Short-Sellers Are Piling Onto Ironwood Pharmaceuticals, Inc. (IRWD)

Short sellers are betting against Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD). Looking at the sentiment indicator for the IRWD stock we see that the short-interest ratio is at 9.494235 while the average analyst recommendations at 2.8 suggests buying these shares. Between January 15 and January 31, the total number of shorted shares amounted to 14.73 million shares. That was 5.26% more than the total of 13.99 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for Ironwood Pharmaceuticals, Inc. at the January 31st settlement jumped to 1,550,978, as compared to 1,437,974 at the January 15th report. That brought days to cover to a 2.41% decrease from the 9.728261 days to cover recorded at the prior short interest data release.

Analysts are forecasting revenue to climb 2.5 percent to $96.57M in the next fiscal quarter, while earnings are seen soaring by nearly 7.14 percent to -$0.15 per share. History has shown that shares in Ironwood Pharmaceuticals, Inc. have gone up on 17 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.38 per share, worse than the -$0.17, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $65.69M, worse than the $94.71M analysts expected. Earnings are estimated to increase by -39.2 percent this year, 100 percent next year and continue to increase by 0 percent annually for the next 5 years.

Ironwood Pharmaceuticals, Inc. (IRWD) will probably climb 2.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $18 price as 12-month high target. This represents a whopping 22.03 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $15, which represents a return potential of 1.69 percent when compared to the closing price of the stock of $14.75 on Wednesday, February 13. The lowest price target for the stock is $10 — slightly more than -32.2 percent from IRWD’s current share price.

The stock is currently hovering around the first support level of $13.99. Below this, the next support is placed in the zone of $13.24. Till the time, the IRWD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 67.48 on daily chart, which may remain a cause for concern. If the price breaks below $13.24 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $15.27 mark may result into a pull-back move towards $15.8 level.

On 13th of February, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) shares ended higher after a volatile session. The shares accumulated 1.54 points or 11.66 percent at $14.75 with a heavy trade volume of 4.753 million shares. After opening the session at $14.64, the shares went as high as $15.04 and as low as $13.76, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.26 billion and now has 153.06 million shares outstanding. Ironwood Pharmaceuticals, Inc. (IRWD) stock has gained 20.21 percent of market value in 21 trading days.

IRWD stock has a trailing 3-year beta of 1.91, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.67 a share in the trailing twelve months. The stock’s value has surged 42.37 percent year to date (YTD) against a rise of 6.34 percent in 12 month’s time. The company’s shares still trade -30.42 percent away from its 1-year high of $21.20 and 62.62 percent up from 52-week low of $9.07. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Ironwood Pharmaceuticals, Inc. (IRWD) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry IRWD operates in has an average P/E of 69.44. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 7.28 on the Price-to-Sales ratio. Compare this with the industry average P/S of 49.51. 93.5 percent is the gross profit margin for Ironwood Pharmaceuticals, Inc. and operating margin sits at -71.6 percent. Along with this, the net profit margin is -82.1 percent.

Let’s take a look at some insider activity at Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) and see the pattern. The earliest insider trade took place on 01/25/2019. Hecht Peter M parted with a total of 89.55 thousand shares of company at average share price of $12.53. The total for the sales was set at $1.12 million. After this transaction, the CEO account balance stood at 4.73 million shares. The stock grew 17.72 percent since that insider sale. On 12/06/2018, Olanoff Lawrence S, Director, sold 2 thousand shares at a price per share of $12.47. This removed 24.94 thousand shares from the insider’s fortune and the stock saw a 18.28 percent rally in value since the news became public. This transaction left 39.55 thousand shares in the Director account.

On 12/06/2018, Director Mchugh Julie performed a sale transaction worth $18.69 thousand. This sale at $12.46 each has eliminated 1.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 18.38 percent increase since the transaction was reported. The insider now is left with 89.63 thousand shares remaining in the account. Consylman Gina, who performs the CFO job, sold 1.36 thousand shares for $16.04 thousand. The disposal occurred on 11/09/2018 was priced at $11.81 per share. The share price soared 24.89 percent since the reporting date. Consylman Gina now left with a stake of 96.36 thousand IRWD stock worth $1.42 million after the insider selling.