Praxis Precision Medicines (NASDAQ:PRAX) Trading 6.3% Higher - Still a Buy?

Key Points

• Praxis Precision Medicines shares rose 6.3% to approximately $389.94 in Monday trading, although volume was 61% below the stock’s average.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $579.55; four analysts rate the stock a Strong Buy, 16 a Buy and two a Sell.
• The company reported a quarterly loss of $2.87 per share, beating the $3.67 consensus loss estimate, while director Jill Desimone sold 11,600 shares under a pre-arranged Rule 10b5-1 plan.

Praxis Precision Medicines, Inc. (NASDAQ:PRAX - Get Free Report) shares shot up 6.3% during trading on Monday . The stock traded as high as $391.41 and last traded at $389.9360. Approximately 181,975 shares were traded during mid-day trading, a decline of 61% from the average daily volume of 471,703 shares. The stock had previously closed at $366.81.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on PRAX shares. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $374.00 target price (down from $420.00) on shares of Praxis Precision Medicines in a report on Tuesday, June 2nd. BTIG Research reaffirmed a "buy" rating and issued a $810.00 price target on shares of Praxis Precision Medicines in a research note on Wednesday, July 29th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $462.00 price target (up from $449.00) on shares of Praxis Precision Medicines in a research note on Friday, August 7th. Needham & Company LLC boosted their price objective on Praxis Precision Medicines from $575.00 to $582.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Praxis Precision Medicines in a research note on Thursday, May 7th. Four investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $579.55.

Praxis Precision Medicines Price Performance

The firm's 50 day moving average price is $313.35 and its 200 day moving average price is $317.98. The stock has a market capitalization of $10.84 billion, a P/E ratio of -30.03 and a beta of 2.78.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($2.87) earnings per share (EPS) for the quarter, topping the consensus estimate of ($3.67) by $0.80. On average, equities research analysts forecast that Praxis Precision Medicines, Inc. will post -13.92 earnings per share for the current year.

Insider Buying and Selling at Praxis Precision Medicines

In other news, Director Jill Desimone sold 11,600 shares of Praxis Precision Medicines stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $311.32, for a total value of $3,611,312.00. Following the sale, the director directly owned 2,337 shares in the company, valued at approximately $727,554.84. This trade represents a 83.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Praxis Precision Medicines

A number of hedge funds and other institutional investors have recently made changes to their positions in PRAX. Bank of New York Mellon Corp purchased a new stake in Praxis Precision Medicines in the second quarter worth $28,583,000. Handelsbanken Fonder AB bought a new stake in Praxis Precision Medicines in the second quarter valued at $3,294,000. GAMMA Investing LLC increased its position in Praxis Precision Medicines by 10.3% during the 2nd quarter. GAMMA Investing LLC now owns 332 shares of the company's stock valued at $111,000 after purchasing an additional 31 shares during the period. Parallel Advisors LLC increased its position in Praxis Precision Medicines by 3,000.0% during the 1st quarter. Parallel Advisors LLC now owns 124 shares of the company's stock valued at $40,000 after purchasing an additional 120 shares during the period. Finally, Perceptive Advisors LLC increased its position in Praxis Precision Medicines by 2.0% during the 1st quarter. Perceptive Advisors LLC now owns 2,035,986 shares of the company's stock valued at $655,974,000 after purchasing an additional 40,000 shares during the period. Institutional investors own 67.84% of the company's stock.

About Praxis Precision Medicines

Praxis Precision Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing precision therapies for disorders driven by neuronal excitability. The company applies translational neuroscience and genetic insights to design small molecule drugs that target specific ion channels and receptor subtypes implicated in neurological and psychiatric conditions. Its research aims to address unmet needs in rare epilepsies, essential tremor, treatment-resistant depression and other central nervous system (CNS) disorders.

The company's pipeline includes several lead candidates at various stages of development.

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