Urogen Pharma Surges 9.7%: Is This an Indication of Further Gains?

Urogen Pharma URGN shares soared 9.7% in the last trading session to close at $19.20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 32.5% gain over the past four weeks.

Last week, the company announced data from the phase III ENVISION study evaluating UGN-102 as a potential non-surgical treatment for patients with low-grade intermediate-risk non-muscle invasive bladder cancer. Data from the study demonstrated an 82.3% 12-month duration of response by Kaplan-Meier estimate in patients who achieved complete response at three months following the first instillation of UGN-102. This may have been driving the share price rally.

This company is expected to post quarterly loss of $0.88 per share in its upcoming report, which represents a year-over-year change of +14.6%. Revenues are expected to be $23.69 million, up 12% 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 Urogen Pharma, the consensus EPS estimate for the quarter has been revised 1.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on URGN 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).

Urogen Pharma is part of the Zacks Medical – Biomedical and Genetics industry. Regenxbio RGNX, another stock in the same industry, closed the last trading session 5.1% lower at $12.41. RGNX has returned -18.3% in the past month.

For Regenxbio, the consensus EPS estimate for the upcoming report has changed +0.9% over the past month to -$1.27. This represents a change of +23.5% from what the company reported a year ago. Regenxbio currently has a Zacks Rank of #3 (Hold).

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