Ardelyx (NASDAQ:ARDX) Sets New 1-Year Low - Should You Sell?

Ardelyx, Inc. (NASDAQ:ARDX) recently hit a new 52-week low, reaching a price of $4.32 during mid-day trading. By the end of the trading session, the stock was priced at $4.34, with a trading volume of approximately 3,196,078 shares, compared to the previous close of $4.66.

Wall Street Analyst Insights

In the realm of investment, Ardelyx has garnered varying opinions from analysts recently. On November 11, HC Wainwright downgraded Ardelyx from a "buy" to a "neutral" rating and modified the price target from $11.00 to $5.50. Citigroup also adjusted their target price for Ardelyx from $12.00 to $10.00 while maintaining a "buy" rating in a report dated November 4. Currently, there are three analysts rating the stock as hold, five as buy, and one as a strong buy, reflecting a consensus of "Moderate Buy" with an average target price of $10.42 according to MarketBeat.com.

Performance of Ardelyx Stock

Ardelyx presents some interesting financial metrics. The company has a debt-to-equity ratio of 0.64, a quick ratio of 3.87, and a current ratio of 4.03. Ardelyx has a market capitalization of $1.09 billion, a price-to-earnings ratio of -15.30, and a beta of 0.83, indicating lower volatility than the market. The stock's fifty-day moving average is $5.53, while the two-hundred-day moving average stands at $5.87.

Insider Trading Activity

Recent insider trading has highlighted significant stock sales. CFO Justin A. Renz sold 5,260 shares on November 20 for an average price of $4.79, totaling approximately $25,195.40. Post-sale, he holds about 291,139 shares valued at roughly $1.39 million, reflecting a 1.77% decrease in his ownership. Another insider, David P. Rosenbaum, sold 49,564 shares on September 27 at an average of $6.92, equating to approximately $342,982.88, leading to a 14.10% reduction in his shares. In total, insiders have sold 236,756 shares worth about $1.37 million in the last ninety days, representing 5.90% of the company's stock held by corporate insiders.

Institutional Holdings

When looking at institutional involvement, many large investors have either increased or decreased their stakes in Ardelyx. For example, Nisa Investment Advisors LLC boosted their stake by 1,026.3%, now owning 3,548 shares after purchasing an additional 3,233 shares. Other firms have also taken positions in Ardelyx, with Coastal Bridge Advisors and Helen Stephens Group acquiring shares in the second and third quarters, respectively. Currently, institutional investors hold approximately 58.92% of the stock.

Overview of Ardelyx, Inc.

Ardelyx, Inc. is a biopharmaceutical company centered on the discovery, development, and commercialization of medications targeting gastrointestinal and cardiorenal health areas both in the United States and internationally. Their primary product candidate, tenapanor, is aimed at treating patients suffering from irritable bowel syndrome with constipation.

Considerations Before Investing

Before deciding whether to invest in Ardelyx, it is wise to consider recent trends and analyst recommendations. While Ardelyx has a "Moderate Buy" recommendation, top analysts have identified other stocks as potentially better investment options. Thus, prospective investors are encouraged to conduct thorough research and analysis before making investment decisions.

Ardelyx, Stocks, Investment