Capricor (CAPR) Surges 18.2%: Is This an Indication of Further Gains?

Capricor Therapeutics (CAPR) shares rallied 18.2% in the last trading session to close at $5.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 10.8% gain over the past four weeks.

The sharp upsurge in Capricor’s shares can be attributed to the company’s anticipated regulatory update on deramiocel for Duchenne muscular dystrophy (DMD) in an investor webcast scheduled for Sept. 24. The webcast will include the latest regulatory updates following Capricor’s recent meetings with the FDA. Capricor hinted at the possibility of an accelerated approval pathway for deramiocel in the United States during their quarterly update call last month. The investors’ optimism is further bolstered by Capricor’s expanded partnership with Nippon Shinyaku, now encompassing the U.S., EU, and Japan, which was announced recently.

This biotechnology company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -36%. Revenues are expected to be $4.31 million, down 30.5% 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 Capricor, 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 CAPR 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 >>>>

Capricor is a member of the Zacks Medical – Products industry. One other stock in the same industry, MacroGenics (MGNX), finished the last trading session 6.7% lower at $3.06. MGNX has returned -6% over the past month.

For MacroGenics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. This represents a change of +115.4% from what the company reported a year ago. MacroGenics currently has a Zacks Rank of #3 (Hold).

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