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Sage Therapeutics, Inc. (SAGE) shares rallied 12.2% in the last trading session to close at $5.61. 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 3.1% gain over the past four weeks.
The company recently announced a strategic reorganization wherein it decided to focus on the commercialization of its depression drug Zurzuvae (zuranolone), which is marketed in partnership with Biogen. Zurzuvae is the first and only oral treatment indicated for adults with postpartum depression. Sage Therapeutics also anticipates operating expenses to decline in 2025 compared with 2024. This might have driven the recent share price rally.
This company is expected to post quarterly loss of $1.49 per share in its upcoming report, which represents a year-over-year change of -170.9%. Revenues are expected to be $13.74 million, down 82.4% 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 Sage Therapeutics, the consensus EPS estimate for the quarter has been revised marginally 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 SAGE 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 >>>>
Sage Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Ascendis Pharma A/S (ASND), closed the last trading session 1% lower at $136.38. Over the past month, ASND has returned 12.3%.
Ascendis Pharma's consensus EPS estimate for the upcoming report has changed -4.6% over the past month to -$1.46. Compared to the company's year-ago EPS, this represents a change of +12.1%. Ascendis Pharma currently boasts a Zacks Rank of #3 (Hold).
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Sage Therapeutics, Inc. (SAGE) : Free Stock Analysis Report
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