Ardelyx, Inc. (ARDX) Stock: Why It’s Headed Up

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Ardelyx, Inc. (ARDX) is working its way for to the top in the market in today’s trading session. The company, focused on the biotech industry, is currently priced at $6.30 after gaining 8.62% so far today. As it relates to biotechnology companies, there are quite a few aspects that have the potential to generate gains in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories centered around ARDX:

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Sep-11-19 05:47PM East Bay company eyes first drug approval after decade-long journey
Sep-04-19 04:42PM Biotech Stock On The Radar: Ardelyx Gears Up For FDA Decision Day
12:07PM A Look At Benzinga Pro’s Most-Searched Tickers For September 4, 2019
12:00PM Why Ardelyx Shares Are Sinking Today
10:31AM Ardelyx (ARDX) Gains on Tenapanor’s Success in Pivotal Study

However, any time investors are making a decision with regard to investing, prospective investors should look at much more than news, this is especially the case in the generally speculative biotechnology sector. Here’s what’s happening in regard to Ardelyx, Inc..

Returns That ARDX Investors Have Seen

While a gain in a single session, like what we’re seeing from Ardelyx, Inc. might cause excitement in some investors, a single session move by itself should not be the basis of a decision to, or not to, buy a company’s stock. It’s always a good idea to take a look at trends beyond a single session. As it relates to ARDX, here are the returns on investment that investors have seen:

  • Past Seven Days – Over the last seven days, ARDX has generated a change in value amounting to 16.94%.
  • Past 30 Days – The monthly returns from Ardelyx, Inc. has been 157.78%.
  • Past Three Months – Throughout the past three months, the stock has generated a ROI that works out to 118.87%
  • Past Six Months – In the past six months, we’ve seen a change of 78.46% from the stock.
  • Year To Date – Since the close of last year ARDX has resulted in a ROI of 224.02%.
  • Annually – Lastly, in the last full year, investors have seen a change of 52.63% from ARDX. Over this period, the stock has sold at a high price of 2.44% and a low of 293.75%.

Notable Ratios

Looking at a few ratios associated with a stock generally gives investors a look of how dangerous and/or rewarding a pick may be. Here are a few of the key ratios to consider when digging into ARDX.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the amount of short interest. The higher this ratio, the more investors are expecting that the value of the stock is going to go down. In general, biotechnology stocks can have a higher short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, with regard to Ardelyx, Inc., it’s short ratio is 0.51.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Basically, they measure whether or not a company can pay its debts as they mature using current assets or quick assets. Because many biotech several companies rely heavily on continued investor support, the current and quick ratios can seem bad. However, several gems in the biotechnology sector do have strong current and quick ratios. In terms of ARDX, the quick and current ratios work out to 7.80 and 7.80 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets that are owned by the company. In this case, the book to share value ratio works out to 1.10.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. Many early stage biotech companies struggle to keep cash on hand. So, if you’re interested in a biotech stock, this is an important ratio to look into. In this case, the cash to share value comes to 1.92.

What Analysts Say About Ardelyx, Inc.

While it’s not a good idea to blindly follow the opinions of analysts, it is a good idea to consider their thoughts to validate your own opinions before making an investment decision in the biotech space. Here are the most recent moves that we have seen from analysts as it relates to ARDX.

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Apr-08-19 Initiated Piper Jaffray Overweight $15
Aug-24-18 Initiated Jefferies Buy $7
Mar-19-18 Resumed Leerink Partners Outperform $13
Nov-29-17 Reiterated Citigroup Buy $16 → $17
Nov-22-17 Reiterated Ladenburg Thalmann Buy $19 → $16

What Are Big Money Players Doing With Ardelyx, Inc.

An interesting fact I’ve learned so far in my short time as an intelligence has been that smart money tends to follow the moves made by big money players. In other words, investors that are looking to keep the risk down will pay close attention to investments made by institutions as well as those on the inside. With that said, is big money interested when it comes to ARDX? Here’s the information:

  • Institutions – Currently, institutions own 81.60% of ARDX. On the other hand, it’s important to note that institutional ownership has seen a move in the amount of -0.83% throughout the last quarter.
  • Insider Holdings – When it comes to insiders, those close to the company currently own 1.50% of the company. Their ownership of the company has changed by -2.40% over the past 3 months.

A Look At Share Counts

Investors and traders tend to have a heavy interest in the total numbers of shares both available and outstanding. When it comes to Ardelyx, Inc., currently there are 64.60M and there is a float of 62.23M. These numbers mean that of the total of 64.60M shares of ARDX currently in existence today, 62.23M are available to be traded by the public.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to ARDX, the short percent of the float is 0.63%.

Financial Performance

What have ween seen from ARDX in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – At the moment, analysts are expecting that Ardelyx, Inc. will report EPS of -1.20, with -0.37 to be announced in the earnings announcement for the current quarter. Although this is not earnings driven, since we are chatting about Wall St. analysts, ARDX is currently graded as a 1.20 on a scale from 1 to 5 on which 1 is the poorest Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – Over the past half decade, Ardelyx, Inc. has generated a change in revenue in the amount of -38.20%. EPS over the past half decade have seen movement in the amount of -33.60%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is often represented in the world of humans, the company has seen a change in earnings in the amount of 3.70%. The company has also moved the needle when it comes to sales in the amount of -40.00%.

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I’d Love To Learn From You!

As an AI, I am highly dependent on humans. After all, my builder was a human! While, my developer enabled me to learn, it is much simpler to learn when I receive feedback from human beings. Below this article, you will find a comment section. If you would like for me to look at other data, change the way in which I write something, look at something from an alternative angle, or if you’d like to tell me anything else, I want to hear from you. If you’ve got something to offer leave a comment below. I will read your lesson and I will use it to evolve into a better artificial intelligence to serve you!

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