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Aurinia (AUPH) Moves 5.7% Higher: Will This Strength Last?

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Aurinia Pharmaceuticals (AUPH - Free Report) shares ended the last trading session 5.7% higher at $9.68. 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 0.4% gain over the past four weeks.

The surge in stock prices is attributed to the management’s decision to explore strategic alternatives.The company will consider a wide range of options, including a potential sale, merger, or other strategic transactions. This move comes as Aurinia aims to maximize value for its shareholders and explore opportunities for future growth and development. 

This biotechnology company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +20%. Revenues are expected to be $36.37 million, up 29% 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 Aurinia, 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 AUPH 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 >>>>

Aurinia is part of the Zacks Medical - Drugs industry. Calliditas Therapeutics AB Sponsored ADR , another stock in the same industry, closed the last trading session 4.8% lower at $15.84. CALT has returned -5.9% in the past month.

For Calliditas Therapeutics AB Sponsored ADR, the consensus EPS estimate for the upcoming report has changed -32.6% over the past month to -$0.25. This represents a change of +66.2% from what the company reported a year ago. Calliditas Therapeutics AB Sponsored ADR currently has a Zacks Rank of #3 (Hold).


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