How did ENTA's Q2 2024 EPS surprise impact short-term traders?

Enanta's (ENTA) Q2 2024 EPS surprise had a negative impact on short-term traders, as evidenced by the following points:

1. **Immediate Price Reaction**: The stock price of Enanta fell by 6.34% following the release of the earnings report. This decline reflects the market's immediate response to the negative earnings surprise.

|code|Ticker|Name|Date|EPS Surprise YoY|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|ENTA|ENTA.O|Enanta|20240331|-295|-0.39|185|
|ENTA|ENTA.O|Enanta|20240630|-168.42105263157893|-0.13|185|

2. **Market Sentiment**: Short-term traders are often influenced by recent news and events. In this case, the earnings miss likely contributed to bearish sentiment, leading traders to sell off their positions in the stock.
3. **Historical Market Behavior**: Historically, negative earnings surprises tend to result in a more pronounced stock reaction, with shares falling an average of 3.5% post-announcement. This suggests that short-term traders, who are focused on quick price movements, would likely experience a significant decline in the stock's value.
4. **Retail Trader Influence**: Research indicates that individual, or retail, investors can amplify the market's reaction to earnings surprises. Although they make up only a fifth of trading volume, their collective action can intensify price movements. This implies that short-term traders, who are predominantly retail investors, could have contributed to the significant drop in Enanta's stock price following the earnings miss.

In conclusion, Enanta's Q2 2024 EPS surprise had a detrimental effect on short-term traders, leading to a substantial decline in the stock price and reflecting bearish market sentiment.