Subscribe to Entrepreneur for $5
Subscribe

Aurinia (AUPH) Surges 6.6%: Is This an Indication of Further Gains?

Aurinia (AUPH) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price...

By
This story originally appeared on Zacks

Aurinia Pharmaceuticals AUPH shares rallied 6.6% in the last trading session to close at $29.84. 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 20.5% gain over the past four weeks.

- Zacks

Shares of Aurinia Pharmaceuticals have been consistently surging, following reports of its proposed acquisition by pharma giant Bristol Myers Squibb. Earlier this year, Aurinia received FDA approval for the first drug in the company’s commercial portfolio, Lupkynis, to treat active lupus nephritis (LN), a disease that causes irreversible kidney damage. While the news is yet to be confirmed by either of the companies, investors remain optimistic about the deal as a potential acquisition of Aurinia will add a recently approved LN drug to Bristol Myers’ commercial portfolio.

This biotechnology company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -10.7%. Revenues are expected to be $14.7 million, up 48906.7% 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 Aurinia, 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 AUPH 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 >>>>



More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>



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

 

Aurinia Pharmaceuticals Inc (AUPH): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research