Are Ironwood Pharmaceuticals Inc (IRWD) and Coronado Biosciences Inc (CNDO) Overvalued?
New York, NY – GDP INSIDER – 03/23/2015.
This article discusses three companies: Ironwood Pharmaceuticals Inc (NASDAQ:IRWD) and Coronado Biosciences Inc (NASDAQ:CNDO)
Ironwood Pharmaceuticals Inc (NASDAQ:IRWD) continued its volatile gains on Friday with the stock increasing 1.10% or $0.18 to closing at $16.59 on very active trading of 3.214 million shares compared to its three month average trading volume of 0.927 million. The company, which develops differentiated medicines, is currently in phase IIB testing of a promising drug for the treatment of gastroparesis and other gastrointestinal disorders, in competition with several other companies. As a result the stock has been fluctuating significantly with the share price bouncing between $13.83 and $16.67 over the last three months. Overall, the stock is up 8.28% so far this year and is trading above its current one year target estimate of $16.59 after it recently experienced a bullish MACD crossover. With RSI of 60.38 the stock is trading towards the higher end of its value but has good investment potential if bought towards the lower end of its volatile trading range.
Coronado Biosciences Inc (NASDAQ:CNDO) fell back from its recent meteoric rise to close down 7.36% or $0.31at $3.90 with more than 3.216 million shares changing hands compared to its three month average trading volume of 0.793 million. The stock has been on the rise since the beginning of March and is up 59.84% since the beginning of the year, vastly outperforming the S&P 500 which is only up 2.39% for the same period by comparison. Friday’s drop pulled the RSI of the developer of immunotherapy agents for the treatment of autoimmune diseases down from above 70 to 67.64 and may indicate that the stock will trade around the $3.90 level for the near term. Without the release of new positive test result it seem unlikely that Coronado Biosciences Inc will get much higher, but the biotechnology sector is enjoying a period of renewed interest from investors and is a good hold at this time.
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