Reata Pharmaceuticals, Inc. (RETA) Moves 7.0% Higher: Will This Strength Last?
Reata Pharmaceuticals, Inc. (RETA) shares rallied 7% in the last trading session to close at $98.83. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3% gain over the past four weeks.
The sudden surge in stock price can be associated with the FDA approval of Reata's prior approval supplement (PAS) application to update the drug substance specification for Skyclarys (omaveloxolone). The new drug application for Skyclarys was approved by the FDA in February 2023, for treating Friedreich’s ataxia in adults and adolescents aged 16 years and older.The company further reported that following the PAS approval, Skyclarys is currently available to patients with Friedreich’s ataxia in the United States.
This company is expected to post quarterly loss of $2.77 per share in its upcoming report, which represents a year-over-year change of -37.1%. Revenues are expected to be $0.93 million, up 21.7% 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 Reata Pharmaceuticals, Inc., the consensus EPS estimate for the quarter has been revised 4.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on RETA 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 >>>>
Reata Pharmaceuticals, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Revance Therapeutics, Inc. (RVNC), another stock in the same industry, closed the last trading session 0.3% lower at $25.40. RVNC has returned -15.8% in the past month.
For Revance Therapeutics, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.78. This represents a change of +11.4% from what the company reported a year ago. Revance Therapeutics, Inc. currently has a Zacks Rank of #3 (Hold).
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