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Ardelyx Inc (ARDX) is not a strong buy at the moment for a beginner investor with a long-term horizon and $50,000-$100,000 to invest. While the company shows positive growth potential in the long term, its recent financial performance, technical indicators, and trading sentiment suggest a cautious approach. The stock may be worth monitoring for future opportunities, but it is not an optimal entry point currently.
The MACD is below zero and negatively contracting, indicating bearish momentum. The RSI is at 23.623, suggesting the stock is nearing oversold territory but not yet a clear buy signal. Moving averages are converging, showing no definitive trend. Key support is at $6.703, and resistance is at $7.02. The stock closed at $6.26, below the pivot point, indicating weak price action.

Analysts have consistently raised price targets, with the most recent targets ranging from $13 to $19, reflecting strong confidence in the company's growth potential.
Ardelyx's FY25 revenue grew by 22.1% YoY, driven by strong IBSRELA sales.
The company has a strong cash position of $264.7M, which supports future development and growth.
Hedge funds are selling, with a 129.11% increase in selling activity last quarter.
The company reported a net loss of $61.6M in 2025, widening from $39.1M in
Gross margin dropped to 72.65%, down 13.79% YoY, and EPS fell significantly.
Post-market price dropped by 7.13%, indicating weak investor sentiment.
Ardelyx reported Q4 2025 revenue of $125.22M, up from $116.13M in Q4 2024, driven by increased adoption of IBSRELA. However, the company reported a net loss of $61.6M for 2025, widening from $39.1M in 2024. R&D expenses increased by 36.6% YoY, reflecting higher investment in future growth. Gross margin dropped to 72.65%, and EPS fell to -0.26, down 1400% YoY.
Analysts are bullish on Ardelyx, with multiple firms raising price targets and maintaining Buy or Strong Buy ratings. The average price target has increased significantly, with the highest target at $19. Analysts highlight strong IBSRELA sales, a large underpenetrated market, and extended IP potential as key growth drivers.