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Acadia (ACAD) Soars 24.7%: Is Further Upside Left in the Stock?
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Acadia Pharmaceuticals (ACAD - Free Report) shares ended the last trading session 24.7% higher at $32.18. 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 5.8% gain over the past four weeks.
The sudden surge in the stock price was observed after Acadia announced that it is expanding its current licensing agreement for trofinetide with Neuren Pharmaceuticals. Under the agreement, the company has now acquired rights to market trofinetide outside North America along with exclusive global rights to Neuren’s development candidate, NNZ-2591, in Rett syndrome and Fragile X syndrome. Neuren is entitled to receive an upfront payment of $100 million from Acadia. Neuren is also eligible to receive royalty payments and milestone payments from ACAD separately, upon the achievement of certain pre-specified revenue milestones. Additionally, Neuren will receive tiered royalty payments from Acadia, ranging from mid-teens to low-twenties percent of trofinetide net sales outside of North America.
This drugmaker is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of -4.8%. Revenues are expected to be $138.56 million, up 3% 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 Acadia, the consensus EPS estimate for the quarter has been revised 7.7% 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 ACAD going forward to see if this recent jump can turn into more strength down the road.
Acadia is part of the Zacks Medical - Biomedical and Genetics industry. Tango Therapeutics, Inc. (TNGX - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $3.43. TNGX has returned -4.4% in the past month.
For Tango Therapeutics, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.35. This represents a change of -25% from what the company reported a year ago. Tango Therapeutics, Inc. currently has a Zacks Rank of #3 (Hold).
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Acadia (ACAD) Soars 24.7%: Is Further Upside Left in the Stock?
Acadia Pharmaceuticals (ACAD - Free Report) shares ended the last trading session 24.7% higher at $32.18. 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 5.8% gain over the past four weeks.
The sudden surge in the stock price was observed after Acadia announced that it is expanding its current licensing agreement for trofinetide with Neuren Pharmaceuticals. Under the agreement, the company has now acquired rights to market trofinetide outside North America along with exclusive global rights to Neuren’s development candidate, NNZ-2591, in Rett syndrome and Fragile X syndrome. Neuren is entitled to receive an upfront payment of $100 million from Acadia. Neuren is also eligible to receive royalty payments and milestone payments from ACAD separately, upon the achievement of certain pre-specified revenue milestones. Additionally, Neuren will receive tiered royalty payments from Acadia, ranging from mid-teens to low-twenties percent of trofinetide net sales outside of North America.
This drugmaker is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of -4.8%. Revenues are expected to be $138.56 million, up 3% 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 Acadia, the consensus EPS estimate for the quarter has been revised 7.7% 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 ACAD 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 >>>>
Acadia is part of the Zacks Medical - Biomedical and Genetics industry. Tango Therapeutics, Inc. (TNGX - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $3.43. TNGX has returned -4.4% in the past month.
For Tango Therapeutics, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.35. This represents a change of -25% from what the company reported a year ago. Tango Therapeutics, Inc. currently has a Zacks Rank of #3 (Hold).