Ardelyx CEO Michael Raab sells $129,124 in company stock

Published 22/02/2025, 00:58
Ardelyx CEO Michael Raab sells $129,124 in company stock

Michael Raab, President and CEO of Ardelyx, Inc. (NASDAQ:ARDX), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Raab sold 22,964 shares of common stock on February 20, 2025. The shares were sold at an average price of $5.6229 per share, amounting to a total transaction value of $129,124. The sale comes as the stock has experienced a 12.61% decline over the past week, though InvestingPro analysis suggests the company is currently undervalued.

Following this transaction, Raab holds 1,085,755 shares directly. Additionally, he maintains indirect ownership of 24,364 shares through a family trust and 1,000 shares in trusts for the benefit of his children. The sale was carried out as part of an automatic sell-to-cover arrangement to address withholding taxes upon the vesting of restricted stock units. The company, currently valued at $1.2 billion, maintains strong liquidity with a current ratio of 5.39. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report about Ardelyx’s financial health and growth prospects.

In other recent news, Ardelyx, Inc. reported strong financial results for the fourth quarter of 2024, exceeding market expectations. The company posted an earnings per share of $0.02, surpassing the forecast of $0.01, and reported revenue of $116.1 million, which was higher than the anticipated $108.58 million. Ardelyx’s product sales were bolstered by robust performances from IBZRILLA and EXPOSA, with the former achieving a 32% quarter-over-quarter growth. The company’s annual net product sales for IBZRILLA reached $158.3 million, while EXPOSA’s annual net sales were $160.9 million. Despite the positive financial results, H.C. Wainwright maintained a Neutral rating on Ardelyx with a price target of $5.50, citing uncertainties related to future Medicare Part D coverage changes for EXPOSA. Ardelyx’s management has set ambitious targets, aiming for EXPOSA to achieve $750 million in annual U.S. net sales before its patent expiration in 2034. The company plans to increase spending to support growth initiatives, including expanding its sales force and enhancing patient services. These developments come as Ardelyx navigates significant market changes and strives to meet its sales objectives in the coming years.

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