Praxis Precision Medicines (NASDAQ:PRAX) Shares Gap Up - Should You Buy?

Key Points

• Praxis Precision Medicines shares gapped higher, opening at $267.35 versus a prior close of $252.96, though the stock remained below its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $630.42; however, one rating was recently downgraded to sell.
• The clinical-stage biopharmaceutical company reported a quarterly loss of $2.87 per share, beating estimates, while institutional investors own approximately 67.84% of its stock.

Shares of Praxis Precision Medicines, Inc. (NASDAQ:PRAX - Get Free Report) gapped up before the market opened on Tuesday. The stock had previously closed at $252.96, but opened at $267.35. Praxis Precision Medicines shares last traded at $268.1370, with a volume of 7,867 shares trading hands.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $462.00 target price (up from $449.00) on shares of Praxis Precision Medicines in a report on Friday, August 7th. Needham & Company LLC reiterated a "buy" rating and set a $582.00 target price on shares of Praxis Precision Medicines in a research report on Thursday, September 24th. The Goldman Sachs Group reissued a "buy" rating and set a $575.00 price target (up from $470.00) on shares of Praxis Precision Medicines in a report on Friday, August 21st. Wall Street Zen cut Praxis Precision Medicines from a "hold" rating to a "sell" rating in a research report on Saturday, October 17th. Finally, Piper Sandler reiterated an "overweight" rating on shares of Praxis Precision Medicines in a research note on Monday, July 13th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $630.42.

Praxis Precision Medicines Stock Performance

The company has a market cap of $7.56 billion, a P/E ratio of -20.97 and a beta of 2.79. The firm's fifty day moving average is $308.67 and its two-hundred day moving average is $314.53.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($2.87) EPS for the quarter, beating analysts' consensus estimates of ($3.67) by $0.80. On average, equities research analysts expect that Praxis Precision Medicines, Inc. will post -14.15 EPS for the current year.

Institutional Trading of Praxis Precision Medicines

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Park Avenue Securities LLC purchased a new position in Praxis Precision Medicines in the 3rd quarter worth approximately $241,000. Sterling Capital Management LLC grew its holdings in Praxis Precision Medicines by 842.0% during the 3rd quarter. Sterling Capital Management LLC now owns 829 shares of the company's stock valued at $241,000 after buying an additional 741 shares in the last quarter. Inspire Investing LLC purchased a new stake in Praxis Precision Medicines during the 3rd quarter valued at approximately $502,000. Nisa Investment Advisors LLC raised its position in shares of Praxis Precision Medicines by 0.9% during the third quarter. Nisa Investment Advisors LLC now owns 6,167 shares of the company's stock valued at $1,796,000 after buying an additional 56 shares during the last quarter. Finally, Net Worth Advisory Group bought a new stake in shares of Praxis Precision Medicines during the third quarter valued at approximately $330,000. Institutional investors own 67.84% of the company's stock.

About Praxis Precision Medicines

Praxis Precision Medicines, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for disorders of the central nervous system. The company applies its Cerebrum™ platform, which combines human genetics, neuroscience and data science, to identify disease mechanisms and advance precision medicines for patients with neurological and psychiatric conditions.

Its pipeline has included investigational treatments for epilepsy and other severe neurological disorders. Key programs have included PRAX-628, a small-molecule antiseizure medicine candidate, and elsunersen, an antisense oligonucleotide program being developed for certain genetically defined forms of epilepsy.

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