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Five Prime Therapeutics (FPRX) Stock Jumps 78.7%: Will It Continue to Soar?

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Five Prime Therapeutics shares rallied 78.7% in the last trading session to close at $38. 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 15.2% gain over the past four weeks.

Amgen's acquisition offer of $38 per share, a premium of almost 79% on closing price of Five Prime's common stock on Mar 3, drove the prices on Mar 4. The acquisition is expected to be completed by the end of second quarter.

Price and Consensus

Price Consensus Chart for Five Prime Therapeutics

This biotech company that develops treatments targeting cancer and autoimmune diseases is expected to post quarterly loss of $0.50 per share in its upcoming report, which represents a year-over-year change of +43.8%. Revenues are expected to be $4.77 million, up 48.6% 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 Five Prime Therapeutics, 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 FPRX 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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