Praxis Precision Medicines (NASDAQ:PRAX) Shares Gap Down - Should You Sell?

Key Points

• Praxis Precision Medicines shares experienced a gap down, opening at $52.00 after closing at $54.09, and last traded at $48.58 with significant trading volume of 552,546 shares.
• Research analysts maintain a generally positive outlook, with eight buy ratings and an average price target of $94.11, despite one analyst issuing a sell rating.
• The company's latest earnings report showed an EPS of ($3.31), slightly beating analyst expectations, but it also reported a negative net margin of 2,137.48% and forecasted EPS of -10.22 for the current fiscal year.

Praxis Precision Medicines, Inc. (NASDAQ:PRAX - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $54.09, but opened at $52.00. Praxis Precision Medicines shares last traded at $48.58, with a volume of 552,546 shares trading hands.

Wall Street Analyst Weigh In

PRAX has been the subject of several research analyst reports. Wedbush increased their target price on shares of Praxis Precision Medicines from $26.00 to $28.00 and gave the stock an "underperform" rating in a research note on Monday, May 5th. Needham & Company LLC reaffirmed a "buy" rating and set a $80.00 price objective on shares of Praxis Precision Medicines in a research report on Thursday, June 12th. Chardan Capital reissued a "buy" rating and set a $80.00 target price on shares of Praxis Precision Medicines in a research note on Tuesday, July 29th. Oppenheimer increased their price objective on Praxis Precision Medicines from $97.00 to $115.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. Finally, HC Wainwright restated a "buy" rating and issued a $115.00 price objective (up from $105.00) on shares of Praxis Precision Medicines in a report on Tuesday. One investment analyst has rated the stock with a sell rating and eight have given a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $95.22.

Praxis Precision Medicines Price Performance

The firm has a market cap of $980.30 million, a price-to-earnings ratio of -3.80 and a beta of 2.62. The firm's fifty day moving average is $47.96 and its 200-day moving average is $48.50.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The company reported ($3.31) earnings per share for the quarter, beating analysts' consensus estimates of ($3.40) by $0.09. Praxis Precision Medicines had a negative return on equity of 60.07% and a negative net margin of 2,137.48%. As a group, equities research analysts anticipate that Praxis Precision Medicines, Inc. will post -10.22 EPS for the current year.

Hedge Funds Weigh In On Praxis Precision Medicines

Hedge funds and other institutional investors have recently bought and sold shares of the stock. American Century Companies Inc. grew its stake in Praxis Precision Medicines by 51.2% during the fourth quarter. American Century Companies Inc. now owns 15,594 shares of the company's stock valued at $1,200,000 after acquiring an additional 5,281 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Praxis Precision Medicines by 2.4% in the 4th quarter. Vanguard Group Inc. now owns 1,063,639 shares of the company's stock valued at $81,858,000 after purchasing an additional 24,645 shares during the last quarter. JPMorgan Chase & Co. grew its position in Praxis Precision Medicines by 24.0% during the fourth quarter. JPMorgan Chase & Co. now owns 9,693 shares of the company's stock valued at $746,000 after buying an additional 1,879 shares during the period. Alliancebernstein L.P. increased its position in shares of Praxis Precision Medicines by 335.8% during the fourth quarter. Alliancebernstein L.P. now owns 78,627 shares of the company's stock worth $6,051,000 after purchasing an additional 60,587 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Praxis Precision Medicines by 2.0% during the 4th quarter. Geode Capital Management LLC now owns 406,711 shares of the company's stock worth $31,308,000 after purchasing an additional 7,873 shares during the last quarter. Institutional investors own 67.84% of the company's stock.

Praxis Precision Medicines Company Profile

Praxis Precision Medicines, Inc, a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. It is developing ulixacaltamide, a small molecule inhibitor of T-type calcium channels that is in Phase III clinical trial for the treatment of essential tremor; PRAX-562 for the treatment of pediatric patients with developmental and epileptic encephalopathies (DEE); and PRAX-628 to treat focal epilepsy.