Yahoo Finance biote Corp. (BTMD) Surges 10.4%: Is This an Indication of Further Gains?
biote Corp. (BTMD) shares ended the last trading session 10.4% higher at $7.30. 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 12% gain over the past four weeks.
The sharp upsurge in Biote's shares can be attributed to the company's announcement that it has signed a binding term sheet with stockholder Marci Donovitz, the ex-wife of founder Gary Donovitz, to resolve her legal claims. She claims that the blank-check company deal that took Biote public was manipulated against the founder's best interests. As part of the settlement, Biote is repurchasing Marci Donovitz's 8.3 million shares at an average price of $7.23 for an aggregate of $60 million.
This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -81.8%. Revenues are expected to be $50.4 million, up 2.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For biote Corp., the consensus EPS estimate for the quarter has been revised 13.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BTMD 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 >>>>
biote Corp. is part of the Zacks Medical - Products industry. Owens & Minor (OMI), another stock in the same industry, closed the last trading session 0.2% higher at $16.97. OMI has returned -2% in the past month.
Owens & Minor's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. Compared to the company's year-ago EPS, this represents a change of +72.2%. Owens & Minor currently boasts a Zacks Rank of #3 (Hold).
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