Beta Bionics, Inc. BBNX shares rallied 15.3% in the last trading session to close at $22.18. 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 1.1% gain over the past four weeks.
Beta Bionics scored a strong price increase on investors’ optimism surrounding to its planned public offering. The company intends to offer and sell, in an underwritten public offering and subject to market and other conditions, $125 million of shares of its common stock.. It also plans to give the underwriters a 30-day option to purchase up to an additional $18.75 million of shares. Beta Bionics plans to use the proceeds for general corporate purposes. These may include the commercialization of Mint, expansion of its manufacturing facilities, research and clinical development, product enhancements, strategic opportunities, working capital and operating expenses.
This company is expected to post quarterly loss of $0.55 per share in its upcoming report, which represents a year-over-year change of -66.7%. Revenues are expected to be $35.17 million, up 29.1% 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 Beta Bionics, Inc., the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BBNX 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 >>>>
Beta Bionics, Inc. is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, CVRx CVRX, finished the last trading session 0.7% higher at $3.02. CVRX has returned 9.1% over the past month.
For CVRx, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.49. This represents no change from what the company reported a year ago. CVRx currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).