Kindred Biosciences
KIN
shares soared 16% in the last trading session to close at $5.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 3.5% loss over the past four weeks.
Shares surged after the company announced positive results from a pivotal efficacy study of KIND-030 in dogs infected by parvovirus. The primary endpoint was survival and the results showed 100% survival in the treated group as compared to 43% survival in the placebo group.
Price and Consensus
This biopharmaceutical company is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of -118.5%. Revenues are expected to be $8.12 million, down 79.5% 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 Kindred Bio, the consensus EPS estimate for the quarter has been revised 8% 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 KIN 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
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