Liquidia Technologies, Inc. (LQDA) shares rallied 14.1% in the last trading session to close at $10.16. 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 33% loss over the past four weeks.
The sudden rise in the stock price was observed after Liquidia announced the pricing of an underwritten public offering and a concurrent private placement which is expected to raise gross proceeds of approximately $67.5 million. The transaction is expected to close today, subject to other customary closing conditions. Liquidia has also entered into an agreement to raise an additional $32.5 million from HealthCare Royalty under the companies’ existing financing agreement. With this payment, HealthCare Royalty will have invested the full $100 million in non-dilutive capital under their January 2023 original financing agreement. Liquidia plans to utilize the net proceeds from the public offering, the concurrent private placement and the payment from HealthCare Royalty to fund commercial activities and further clinical development of Yutrepia (treprostinil) inhalation powder. The drug is indicated for the potential treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease.
This company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -58.3%. Revenues are expected to be $4.42 million, up 20% 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 Liquidia Technologies, the consensus EPS estimate for the quarter has been revised 11.5% 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 LQDA 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 >>>>
Liquidia Technologies is part of the Zacks Medical - Biomedical and Genetics industry. Guardant Health (GH), another stock in the same industry, closed the last trading session 3.6% lower at $24.87. GH has returned -13.2% in the past month.
Guardant Health's consensus EPS estimate for the upcoming report has changed -2.8% over the past month to -$0.56. Compared to the company's year-ago EPS, this represents a change of +23.3%. Guardant Health currently boasts a Zacks Rank of #3 (Hold).
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