REGENXBIO (RGNX) Moves 31.2% Higher: Will This Strength Last?
REGENXBIO RGNX shares ended the last trading session 31.2% higher at $43.40. 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 5.3% gain over the past four weeks.
This surge was attributable to the collaboration agreement entered by the company with pharma giant AbbVie for the co-development and co-commercialization of RGX-314, its investigational one-time gene therapy for the treatment of wet age-related macular degeneration (“wet AMD”), diabetic retinopathy (“DR”) and other chronic retinal diseases. Per the terms of the agreement, REGENXBIO will receive $370 million as upfront payment from AbbVie. The company will further be eligible to receive potential milestone payments upto $1.38 billion.
Price and Consensus
This biotechnology company is expected to post quarterly loss of $1.23 per share in its upcoming report, which represents a year-over-year change of -634.8%. Revenues are expected to be $29.4 million, down 70.3% 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 REGENXBIO, the consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RGNX 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 >>>>
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