OptimizeRx Corp. (OPRX) Surges 13.0%: Is This an Indication of Further Gains?
OptimizeRx Corp. OPRX shares soared 13% in the last trading session to close at $8.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.9% loss over the past four weeks.
The increase in share price can be attributed to the announcement of the acquisition of Medicx Health by OptimizeRx. Medicx Health is a consumer-focused omnichannel marketing and analytics company.
The acquisition of Medicx Health technology and analytics solutions is likely to aid OptimizeRx in gaining a larger share in life science commercial digital budgets, which is forecast to grow 15% to 20% per year.
OptimizeRx will be paying $95 million as total consideration for the acquisition, which is expected to close in the fourth quarter of 2023. Notably, some members of Medicx Health’s management plan to invest $10.5 million of their proceeds into the company’s common stock.
OptimizeRx noted that the consolidated revenue run rate will increase to nearly $100 million and the acquisition is anticipated to be immediately accretive to earnings.
For the third quarter, OptimizeRx expects revenues "to come in ahead of consensus" and in the range of $15.2-$15.5 million. The top-line performance is driven by strong organic revenue growth, added the company.
This company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -85.7%. Revenues are expected to be $14.24 million, down 5.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For OptimizeRx Corp., 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 OPRX 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 >>>>
OptimizeRx Corp. is a member of the Zacks Computer - Software industry. One other stock in the same industry, Ansys ANSS, finished the last trading session 1.4% lower at $300.68. ANSS has returned -2.1% over the past month.
For Ansys , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.26. This represents a change of -28.8% from what the company reported a year ago. Ansys currently has a Zacks Rank of #4 (Sell).
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