Ardelyx Inc. (ARDX) shares are trading at lower $6.09 and the avg recommendation for the stock is Strong Buy.
To add more color to this target, the company’s high over the last year is $8.81 and the low is $4.16. Over the last 52 weeks, ARDX is up 20.83% while the S&P 500 is up 13.33%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ARDX reported a profit of $1.7 million. Ardelyx Inc. also saw revenues increase to $1.84 million. In addition, ARDX has free cash flow of -$43.99 million as of 06-2020. The company’s EBITDA came in at -$23.59 million which compares well with its peers.
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ARDX Return on Equity (ROE) is -65.90%, and its Return on Assets is -43.60%. All told, it is clear that, ARDX needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ARDX has a short ratio of 10.43 and outstanding shares of 89.08M.
ARDX has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -1.19. Ardelyx Inc. ARDX also noted assets of $217.34 million at the end of the last quarter. Investors should also keep an eye on sector updates as ARDX has historically followed its peers on positive news.
All told, Ardelyx Inc. ARDX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ARDX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Ardelyx Inc. ARDX is now commanding a market cap of 541.10M and a float of 87.90M. ARDX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ARDX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in ARDX, either long or short, and we have not been compensated for this article.