MeiraGTx Holdings PLC (MGTX) shares soared 5.5% in the last trading session to close at $14.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 52.8% gain over the past four weeks.
The sudden stock price gain was observed after the company announced a strategic financing agreement with Oberland Capital worth up to $400 million, including up to $375 million in non-dilutive royalty funding and up to $25 million in equity. The deal strengthens MeiraGTx's balance sheet, provides funding to support the development and potential commercialization of its late-stage gene therapy candidates without significant shareholder dilution and underscores investor confidence in the commercial prospects of its pipeline, particularly AAV2-hAQP1 and botaretigene sparoparvovec (bota-vec).
This company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of +18.8%. Revenues are expected to be $1.55 million, down 58% 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 MeiraGTx, 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 MGTX 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 >>>>
MeiraGTx is part of the Zacks Medical - Biomedical and Genetics industry. Wave Life Sciences (WVE), another stock in the same industry, closed the last trading session 1% higher at $6.38. WVE has returned 10.9% in the past month.
Wave Life Sciences' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.31. Compared to the company's year-ago EPS, this represents no change. Wave Life Sciences currently boasts a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).