Dianthus Therapeutics, Inc. (DNTH) shares ended the last trading session 9.9% higher at $52.76. 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 11.3% gain over the past four weeks.
The sudden stock price rise can be attributed to a positive investor mindset regarding the potential of Dianthus Therapeutics’ clinical-stage pipeline candidates, claseprubart and DNTH212, to treat different autoimmune indications. Claseprubart is currently being evaluated in separate mid-to-late-stage studies for the treatment of generalized myasthenia gravis, chronic inflammatory demyelinating polyneuropathy, and multifocal motor neuropathy. On the other hand, DNTH recently initiated an early-stage study to evaluate DNTH212 for systemic lupus erythematosus.
This company is expected to post quarterly loss of $0.97 per share in its upcoming report, which represents a year-over-year change of -19.8%. Revenues are expected to be $0.52 million, down 61% 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 Dianthus Therapeutics, 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 DNTH 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 >>>>
Dianthus Therapeutics, Inc. is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Royalty Pharma (RPRX), finished the last trading session 1% higher at $40.11. RPRX has returned 1.2% over the past month.
For Royalty Pharma, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.33. This represents a change of +15.7% from what the company reported a year ago. Royalty Pharma currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
