4D Molecular Therapeutics, Inc. (FDMT) Surges 5.4%: Is This an Indication of Further Gains?
4D Molecular Therapeutics, Inc. (FDMT) shares ended the last trading session 5.4% higher at $16.94. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.3% loss over the past four weeks.
The sudden soaring in stock price can be attributed to the positive investor mindset after the company announced pricing an upsized underwritten public offer of 7,500,000 shares of its common stock at a public offering price of $16.00 per share. Additionally, the company granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering are expected to be $120.0 million which will provide the company with a sudden influx of cash.
Expected earnings in the upcoming report, represents a year-over-year change of -7.3%. Revenues are expected to be $1.45 million, up 19.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For 4D Molecular Therapeutics, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FDMT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
4D Molecular Therapeutics, Inc. is part of the Zacks Medical - Drugs industry. Inotiv, Inc. (NOTV), another stock in the same industry, closed the last trading session 3.7% higher at $5.84. NOTV has returned 37.7% in the past month.
Inotiv, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.16. Compared to the company's year-ago EPS, this represents a change of +33.3%. Inotiv, Inc. currently boasts a Zacks Rank of #3 (Hold).
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4D Molecular Therapeutics, Inc. (FDMT) : Free Stock Analysis Report
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