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MacroGenics (MGNX) Stock Jumps 8.9%: Will It Continue to Soar?

MacroGenics (MGNX) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revis...

This story originally appeared on Zacks

MacroGenics MGNX shares ended the last trading session 8.9% higher at $23. 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 14.5% loss over the past four weeks.

- Zacks

MacroGenics recorded a strong price increase following the previous day’s nearly 3% setback when the final overall survival (OS) results from the SOPHIA study was released. The OS analysis of the SOPHIA Phase 3 study did not demonstrate a statistically significant advantage for MacroGenics’ FDA-authorized breast cancer treatment MARGENZA over Roche’s trastuzumab, when combined with chemotherapy respectively. However, a delayed upturn in the market sentiment can be attributed to a pre-specified, non-alpha-allocated exploratory analysis assessing the effect of CD16A allelic variation on MARGENZA activity. The analysis demonstrated a 2.5 months prolonged median OS in the MARGENZA arm compared to the trastuzumab arm. Additionally, the safety profile of MARGENZA was said to be similar to what had previously been reported and to be in line with the product's existing FDA-approved label.

Price and Consensus

Price Consensus Chart for MGNX

This biopharmaceutical company is expected to post quarterly loss of $0.63 per share in its upcoming report, which represents a year-over-year change of +4.6%. Revenues are expected to be $39.56 million, up 116.8% 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 MacroGenics, 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 MGNX 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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