Ardelyx Sees Unusually Large Options Volume (NASDAQ:ARDX)

Ardelyx, Inc. (NASDAQ:ARDX) was the target of unusually large options trading on Wednesday. Investors purchased 20,015 put options on the stock. This is an increase of 466% compared to the typical daily volume of 3,538 put options.

Wall Street Analyst Weigh In

Several research firms have commented on ARDX. BTIG Research lowered their price objective on shares of Ardelyx from $14.00 to $11.00 and set a “buy” rating for the company in a research report on Monday. Piper Sandler reduced their target price on shares of Ardelyx from $16.00 to $15.00 and set an “overweight” rating on the stock in a report on Monday, August 17th. Citigroup decreased their target price on shares of Ardelyx from $14.00 to $11.00 and set a “buy” rating on the stock in a research report on Monday, August 10th. TD Cowen started coverage on shares of Ardelyx in a report on Wednesday, November 4th. They issued a “strong-buy” rating for the company. Finally, HC Wainwright reiterated a “buy” rating and issued a $13.00 price target on shares of Ardelyx in a research report on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.60.

Insiders Place Their Bets

In related news, insider John E. Bishop sold 19,750 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $3.86, for a total value of $76,235.00. Following the transaction, the insider owned 317,095 shares of the company’s stock, valued at approximately $1,223,986.70. This trade represents a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Eric Foster sold 8,562 shares of the business’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $3.86, for a total transaction of $33,049.32. Following the completion of the sale, the insider owned 409,410 shares in the company, valued at approximately $1,580,322.60. The trade was a 2.05% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 126,059 shares of company stock valued at $486,588. 5.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ARDX. Knott David M Jr bought a new stake in shares of Ardelyx during the 1st quarter worth approximately $1,240,000. AIGH Capital Management LLC bought a new position in Ardelyx in the 2nd quarter valued at $16,320,000. Rubric Capital Management LP bought a new position in Ardelyx in the 1st quarter valued at $11,147,000. Clay Northam Wealth Management LLC purchased a new stake in Ardelyx in the second quarter worth $1,704,000. Finally, J. Goldman & Co LP purchased a new stake in Ardelyx in the second quarter worth $8,057,000. Hedge funds and other institutional investors own 58.92% of the company’s stock.

Ardelyx News Summary

Investors following ARDX have been watching these news items:

• Positive Sentiment: BTIG Research lowered its price target from $14 to $11 but maintained a Buy rating; the revised target remains well above the share price cited in the report. BTIG Research ratings
• Negative Sentiment: Investors purchased 20,015 ARDX put options on Wednesday, about 466% above the reported average daily volume. The jump may signal increased hedging or bearish positioning, though options activity alone does not establish investors’ expectations.
• Negative Sentiment: BTIG’s price-target reduction is a less favorable revision, even though the firm kept its Buy rating.

Ardelyx Trading Up 2.8%

Shares of ARDX stock traded up $0.09 during trading hours on Wednesday, reaching $3.10. 803,746 shares of the stock were exchanged, compared to its average volume of 4,336,836. Ardelyx has a 12-month low of $2.80 and a 12-month high of $8.40. The company has a current ratio of 3.45, a quick ratio of 3.26 and a debt-to-equity ratio of 1.54. The company’s 50-day moving average price is $3.32 and its 200-day moving average price is $5.18. The firm has a market capitalization of $778.00 million, a price-to-earnings ratio of -14.07 and a beta of 0.79.

Ardelyx Company Profile

Ardelyx, Inc. is a biopharmaceutical company that develops and commercializes medicines for kidney and gastrointestinal diseases. Founded in 2007, the company has focused on treatments that work in the gastrointestinal tract, including therapies based on tenapanor. Ardelyx markets IBSRELA (tenapanor) in the United States for adults with irritable bowel syndrome with constipation. It also markets XPHOZAH (tenapanor) to help control serum phosphorus in adults with chronic kidney disease who are on dialysis.