SeaSpine (SPNE) Surges 13.2%: Is This an Indication of Further Gains?

SeaSpine Holdings (SPNE) shares ended the last trading session 13.2% higher at $20.39. 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 0.2% gain over the past four weeks.

SeaSpine scored a strong price rise driven by its encouraging preliminary announcement for first-quarter 2021, noting 17% to 18% projected increase in sales-per-day compared to the year-ago period (reported increase of 15% to 16%). SeaSpine’s 2021 revenue guidance that projects 25% to 28% growth over the year-ago figure also buoys optimism.

Price and Consensus

Price Consensus Chart for SPNE

This medical technology company is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of +30.2%. Revenues are expected to be $39.04 million, up 8.1% 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 SeaSpine, 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 SPNE 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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