Wells Fargo & Company Has Lowered Expectations for Praxis Precision Medicines (NASDAQ:PRAX) Stock Price

Key Points

• Wells Fargo cut its price target on Praxis Precision Medicines from $362 to $343 and maintained an “equal weight” rating; the new target implies about 1.8% upside from the cited share price.
• Analyst views are mixed, but the overall consensus is “Moderate Buy,” with an average price target of $629.42. Recent targets ranged from $343 at Wells Fargo to $706 at UBS.
• Praxis reported a quarterly loss of $3.23 per share, narrower than analysts’ expected loss of $3.54.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) had its price target lowered by equities research analysts at Wells Fargo & Company from $362.00 to $343.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would indicate a potential upside of 1.78% from the stock's current price.

Other equities analysts also recently issued reports about the company. Needham & Company LLC restated a "buy" rating and issued a $582.00 price target on shares of Praxis Precision Medicines in a research note on Thursday, September 24th. Piper Sandler reiterated an "overweight" rating on shares of Praxis Precision Medicines in a research report on Monday, July 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Praxis Precision Medicines in a research report on Monday, August 24th. The Goldman Sachs Group reissued a "buy" rating and issued a $575.00 target price (up from $470.00) on shares of Praxis Precision Medicines in a research report on Friday, August 21st. Finally, UBS Group assumed coverage on Praxis Precision Medicines in a research note on Wednesday, October 14th. They set a "buy" rating and a $706.00 price target for the company. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $629.42.

Praxis Precision Medicines Price Performance

NASDAQ:PRAX traded up $4.04 during mid-day trading on Tuesday, reaching $337.01. 31,075 shares of the company's stock traded hands, compared to its average volume of 466,398. The firm has a market capitalization of $9.41 billion, a price-to-earnings ratio of -26.27 and a beta of 2.85. Praxis Precision Medicines has a 12-month low of $160.11 and a 12-month high of $392.70. The company has a 50 day moving average price of $291.50 and a 200-day moving average price of $313.82.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) last issued its quarterly earnings results on Monday, November 9th. The company reported ($3.23) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($3.54) by $0.31. As a group, analysts forecast that Praxis Precision Medicines will post -14.15 EPS for the current year.

Hedge Funds Weigh In On Praxis Precision Medicines

A number of large investors have recently made changes to their positions in PRAX. GAMMA Investing LLC boosted its holdings in shares of Praxis Precision Medicines by 10.3% in the 2nd quarter. GAMMA Investing LLC now owns 332 shares of the company's stock valued at $111,000 after buying an additional 31 shares in the last quarter. KBC Group NV grew its stake in Praxis Precision Medicines by 5.8% during the 1st quarter. KBC Group NV now owns 715 shares of the company's stock worth $230,000 after buying an additional 39 shares during the last quarter. Nisa Investment Advisors LLC grew its stake in Praxis Precision Medicines by 0.9% during the 3rd quarter. Nisa Investment Advisors LLC now owns 6,167 shares of the company's stock worth $1,796,000 after buying an additional 56 shares during the last quarter. Carl P. Sherr & Co. LLC increased its position in Praxis Precision Medicines by 8.4% during the first quarter. Carl P. Sherr & Co. LLC now owns 972 shares of the company's stock worth $313,000 after buying an additional 75 shares during the period. Finally, Eagle Bay Advisors LLC increased its position in Praxis Precision Medicines by 11.3% during the third quarter. Eagle Bay Advisors LLC now owns 1,064 shares of the company's stock worth $310,000 after buying an additional 108 shares during the period. 67.84% of the stock is owned by hedge funds and other institutional investors.

Praxis Precision Medicines News Roundup

Here are the key news stories impacting Praxis Precision Medicines this week:

• Positive Sentiment: Praxis reported a third-quarter loss of $3.23 per share, narrower than analysts’ expected loss of $3.54. The company also issued a corporate update alongside its results. Corporate update and third-quarter results Earnings information
• Positive Sentiment: Analyst coverage was supportive: BTIG reaffirmed its “buy” rating with an $826 price target, and a separate report put the average analyst target at $630.42. These targets suggest substantial upside from the prices cited in the reports. Analyst average price target
• Negative Sentiment: A report characterized PRAX as expensive relative to its book value, highlighting a valuation concern that could temper investor enthusiasm. Valuation relative to book value

About Praxis Precision Medicines

Praxis Precision Medicines is a clinical-stage biopharmaceutical company focused on developing treatments for neurological and psychiatric disorders. The company applies neuroscience and precision-medicine research to conditions involving abnormalities in brain circuits and neuronal activity.

Its investigational programs have included small-molecule therapies for disorders such as essential tremor and epilepsy, as well as genetic-medicine approaches for certain rare neurological conditions.

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