Beam Therapeutics (NASDAQ:BEAM) Shares Gap Down - Should You Sell?

Key Points

• Beam Therapeutics shares opened lower, falling from a prior close of $30.48 to $29.53 before recovering slightly to $30.26.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating from 13 analysts and an average price target of $49, despite some “sell” recommendations.
• The company reported weaker-than-expected quarterly results, including a $1.18-per-share loss and just $0.49 million in revenue, while insiders sold approximately $10.5 million worth of shares over the past 90 days.

Beam Therapeutics Inc. (NASDAQ:BEAM - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $30.48, but opened at $29.53. Beam Therapeutics shares last traded at $30.26, with a volume of 88,295 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Tudor Pickering set a $39.00 price target on shares of Beam Therapeutics in a research report on Wednesday, May 13th. Bank of America restated a "buy" rating and issued a $47.00 target price on shares of Beam Therapeutics in a research note on Wednesday, July 8th. Wall Street Zen lowered Beam Therapeutics from a "sell" rating to a "strong sell" rating in a report on Sunday, August 16th. Sanford C. Bernstein dropped their target price on Beam Therapeutics from $40.00 to $39.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Beam Therapeutics in a report on Friday, July 17th. Ten analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Beam Therapeutics presently has a consensus rating of "Moderate Buy" and an average price target of $49.00.

Beam Therapeutics Price Performance

The stock has a 50 day moving average of $29.94 and a 200-day moving average of $28.86. The company has a debt-to-equity ratio of 0.09, a quick ratio of 14.57 and a current ratio of 14.57. The company has a market cap of $3.08 billion, a PE ratio of -34.69 and a beta of 2.23.

Beam Therapeutics (NASDAQ:BEAM - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($1.18) earnings per share for the quarter, missing the consensus estimate of ($1.11) by ($0.07). Beam Therapeutics had a negative net margin of 54.75% and a negative return on equity of 30.71%. The firm had revenue of $0.49 million for the quarter, compared to analysts' expectations of $16.37 million. During the same quarter in the previous year, the firm posted ($1.00) EPS. The firm's revenue for the quarter was down 94.2% compared to the same quarter last year. Equities analysts predict that Beam Therapeutics Inc. will post -4.49 earnings per share for the current year.

Insider Activity at Beam Therapeutics

In other news, insider Fmr Llc sold 251,488 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $35.26, for a total value of $8,867,466.88. Following the sale, the insider owned 854,583 shares in the company, valued at $30,132,596.58. This represents a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Amy Simon sold 16,667 shares of the business's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $25.74, for a total transaction of $429,008.58. Following the transaction, the insider owned 85,696 shares of the company's stock, valued at $2,205,815.04. This represents a 16.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 301,527 shares of company stock valued at $10,468,500. Company insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Alphabet Inc. acquired a new position in shares of Beam Therapeutics in the 2nd quarter valued at $11,037,000. Canal Insurance CO purchased a new stake in Beam Therapeutics during the first quarter worth $953,000. Ishara Investments LP acquired a new stake in Beam Therapeutics during the fourth quarter valued at $1,386,000. Janus Henderson Group PLC grew its position in Beam Therapeutics by 136.1% during the first quarter. Janus Henderson Group PLC now owns 93,253 shares of the company's stock valued at $2,222,000 after buying an additional 53,752 shares during the period. Finally, First Trust Advisors LP grew its position in Beam Therapeutics by 111.0% during the first quarter. First Trust Advisors LP now owns 135,166 shares of the company's stock valued at $3,221,000 after buying an additional 71,110 shares during the period. 99.68% of the stock is owned by institutional investors and hedge funds.

About Beam Therapeutics

Beam Therapeutics, Inc NASDAQ: BEAM is a biotechnology company dedicated to developing precision genetic medicines through its pioneering base editing platform. Headquartered in Cambridge, Massachusetts, with additional research facilities in Philadelphia, the company focuses on engineering molecular editors capable of making precise single-nucleotide changes in DNA. By harnessing its proprietary base editing technology, Beam aims to correct or disrupt disease-causing genetic variants at their source, offering the potential for novel therapies in areas with significant unmet medical need.

Founded in 2017 as a spin-out from Harvard University and the Broad and Whitehead Institutes, Beam was co-founded by leading academic researcher David R.

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