In This Article:
Axsome Therapeutics (AXSM) shares soared 20.2% in the last trading session to close at $127.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 32.1% gain over the past four weeks.
The sudden rise in the stock price was observed after Axsome announced that it has entered into a settlement agreement with Teva Pharmaceuticals regarding the Auvelity (dextromethorphan HBr – bupropion HCl) patent litigation. The settlement agreement resolves the patent litigation brought by AXSM on Teva for submitting an abbreviated new drug application to the FDA seeking marketing approval for a generic version of Auvelity in the United States before applicable patents expire.
This biopharmaceutical company is expected to post quarterly loss of $0.97 per share in its upcoming report, which represents a year-over-year change of -32.9%. Revenues are expected to be $117.84 million, up 64.7% 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 Axsome, the consensus EPS estimate for the quarter has been revised 1.6% 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 AXSM 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 >>>>
Axsome belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Arcturus Therapeutics (ARCT), closed the last trading session 0.5% lower at $16.11. Over the past month, ARCT has returned -10%.
For Arcturus Therapeutics , the consensus EPS estimate for the upcoming report has changed +20.2% over the past month to -$0.34. This represents a change of -6.3% from what the company reported a year ago. Arcturus Therapeutics currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Axsome Therapeutics, Inc. (AXSM) : Free Stock Analysis Report
Arcturus Therapeutics Holdings Inc. (ARCT) : Free Stock Analysis Report