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Prometheus Biosciences, Inc. (RXDX) Stock Jumps 69.7%: Will It Continue to Soar?
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Prometheus Biosciences, Inc. shares ended the last trading session 69.7% higher at $193.51. 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 1.2% gain over the past four weeks.
The sudden soaring of stock price was observed after Prometheus announced that it is set to be acquired by pharma bigwig, Merck (MRK - Free Report) , for $200 per share in cash for a total equity value of approximately $10.8 billion. The transaction will be carried out through a subsidiary of Merck. Per the agreement, Merck will acquire all outstanding shares of Prometheus, subject to its shareholders’ approval. The deal's closing hinges on certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. Merck and Prometheus expect to close the acquisition deal in the third quarter of 2023.
This company is expected to post quarterly loss of $0.92 per share in its upcoming report, which represents a year-over-year change of -12.2%. Revenues are expected to be $0.63 million, down 83.9% 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 Prometheus Biosciences, Inc., 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 RXDX going forward to see if this recent jump can turn into more strength down the road.
Prometheus Biosciences, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Mirati , closed the last trading session 7.6% higher at $42.24. Over the past month, MRTX has returned -5.2%.
For Mirati, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$3.47. This represents a change of -2.1% from what the company reported a year ago. Mirati currently has a Zacks Rank of #3 (Hold).
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Prometheus Biosciences, Inc. (RXDX) Stock Jumps 69.7%: Will It Continue to Soar?
Prometheus Biosciences, Inc. shares ended the last trading session 69.7% higher at $193.51. 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 1.2% gain over the past four weeks.
The sudden soaring of stock price was observed after Prometheus announced that it is set to be acquired by pharma bigwig, Merck (MRK - Free Report) , for $200 per share in cash for a total equity value of approximately $10.8 billion. The transaction will be carried out through a subsidiary of Merck. Per the agreement, Merck will acquire all outstanding shares of Prometheus, subject to its shareholders’ approval. The deal's closing hinges on certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. Merck and Prometheus expect to close the acquisition deal in the third quarter of 2023.
This company is expected to post quarterly loss of $0.92 per share in its upcoming report, which represents a year-over-year change of -12.2%. Revenues are expected to be $0.63 million, down 83.9% 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 Prometheus Biosciences, Inc., 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 RXDX 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 >>>>
Prometheus Biosciences, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Mirati , closed the last trading session 7.6% higher at $42.24. Over the past month, MRTX has returned -5.2%.
For Mirati, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$3.47. This represents a change of -2.1% from what the company reported a year ago. Mirati currently has a Zacks Rank of #3 (Hold).