Ardelyx Inc (NASDAQ:ARDX), a biopharmaceutical company focused on developing innovative first-in-class medicines to improve treatment for people with kidney and cardiovascular diseases, has reported an insider sell according to a recent SEC filing. The insider, CFO Justin Renz, sold 225,000 shares of the company on December 26, 2023.

The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

• Warning! GuruFocus has detected 5 Warning Signs with ARDX.

Over the past year, the insider has sold a total of 237,069 shares of Ardelyx Inc and has not made any purchases of the stock. The insider transaction history for Ardelyx Inc shows a pattern of sales by insiders, with a total of 44 insider sells and no insider buys over the past year.

On the date of the insider's most recent transaction, shares of Ardelyx Inc were trading at $6.36, resulting in a market cap of $1.439 billion.

The stock's price-to-GF-Value ratio stands at 0.74, with Ardelyx Inc's shares being classified as Modestly Undervalued based on the GF Value of $8.61. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which takes into account historical trading multiples, a GuruFocus adjustment factor based on the company's past performance, and future business performance estimates from Morningstar analysts.

The insider's sell activity comes at a time when the stock is trading below its GF Value, suggesting a potential undervaluation of the shares.

Investors and analysts often monitor insider sell transactions to gain insights into a company's internal perspective. While insider selling does not always indicate a lack of confidence in the company, a high volume of insider sales may prompt stakeholders to scrutinize the transactions for underlying reasons.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.