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What happened

Investors in OraSure Technologies (NASDAQ:OSUR), a small-cap provider of diagnostic products and specimen collection devices, are having a nice start to the trading week. The company's stock is up 11% as of 3:50 p.m. EDT on the back of two positive news items released Monday.

So what

The first piece of good news was related to OraSure's molecular collection systems subsidiary DNA Genotek. The company announced that a study conducted by Human Longevity, Inc., which proposed that DNA Genotek's OMNIgene GUT Kit should become a standardized test used to collect microbiome samples worldwide, was published in the journal Scientific Reports this past week. The authors stated that the OMNIgene GUT kit allowed for ambient temperature storage, automation, and made it easy to ship samples, making it a good choice to help standardize collections.

If that wasn't good enough, the investment bank Stephens also raised its rating on the company's stock to "overweight" and upped its price target to $11 from its prior outlook of $7.50.

Taken together, those positive developments have put traders in a good mood, sending shares of OraSure higher Monday.

Now what

It's been a good couple of weeks for OraSure investors. Last week the company announced that it had been awarded a contract from the Department of Health and Human Services and BADRA worth up to $16.6 million to speed up the development of its rapid Zika virus test. That news also caused shares to spike, and when including Monday's move, shares are up more than 26% over the past five trading session. That's a pretty solid return over such a short period of time.

I think the optimism is warranted given the recent announcements, but investors would be wise to remember that sales from OraSure's DNA Genotek subsidiary currently comprise only about 26% of total company revenue. That means even if the division sees a bump in sales activity from this report, OraSure's top line might not move as much as you would otherwise assume.

Still, good news is good news, and this report does hold potential to drive increased demand for the company's sample testing equipment, so I understand why shares are rising on Monday.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.