Praxis Precision Medicines (NASDAQ:PRAX) Stock Jumps 7.1% - Time to Buy?

Key Points

• Praxis Precision Medicines shares rose 7.1% to approximately $258.95, although trading volume was 64% below the average daily level.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $630.42. Recent firms raised targets as high as $826, while UBS initiated coverage with a $706 target.
• The clinical-stage biotechnology company beat quarterly EPS expectations, reporting a loss of $2.87 per share versus the anticipated $3.67 loss. However, analysts expect a full-year loss of $13.90 per share, underscoring its ongoing unprofitability.

Praxis Precision Medicines, Inc. (NASDAQ:PRAX - Get Free Report) shares were up 7.1% during mid-day trading on Monday. The company traded as high as $259.41 and last traded at $258.9470. Approximately 168,600 shares traded hands during trading, a decline of 64% from the average daily volume of 466,343 shares. The stock had previously closed at $241.76.

Analyst Upgrades and Downgrades

PRAX has been the topic of several recent analyst reports. UBS Group began coverage on shares of Praxis Precision Medicines in a research note on Wednesday. They set a "buy" rating and a $706.00 price objective on the stock. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $575.00 target price (up from $470.00) on shares of Praxis Precision Medicines in a research note on Friday, August 21st. Wells Fargo & Company reissued a "positive" rating and set a $362.00 price target (up from $323.00) on shares of Praxis Precision Medicines in a research report on Friday, August 7th. Raymond James Financial reissued a "strong-buy" rating and issued a $945.00 price target on shares of Praxis Precision Medicines in a report on Monday, August 17th. Finally, BTIG Research upped their price objective on shares of Praxis Precision Medicines from $810.00 to $826.00 and gave the company a "buy" rating in a research report on Tuesday, October 6th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $630.42.

Praxis Precision Medicines Stock Up 7.1%

The firm has a market capitalization of $7.23 billion, a price-to-earnings ratio of -19.95 and a beta of 2.79. The business's fifty day moving average is $321.69 and its 200 day moving average is $318.60.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) last issued 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. Equities research analysts expect that Praxis Precision Medicines, Inc. will post -13.90 EPS for the current year.

Hedge Funds Weigh In On Praxis Precision Medicines

A number of large investors have recently bought and sold shares of the company. IFP Advisors Inc grew its stake in shares of Praxis Precision Medicines by 632.0% during the 3rd quarter. IFP Advisors Inc now owns 183 shares of the company's stock worth $53,000 after acquiring an additional 158 shares in the last quarter. Eagle Bay Advisors LLC raised its holdings in shares of Praxis Precision Medicines by 11.3% in the third quarter. Eagle Bay Advisors LLC now owns 1,064 shares of the company's stock valued at $310,000 after purchasing an additional 108 shares during the last quarter. Avior Wealth Management LLC bought a new stake in shares of Praxis Precision Medicines in the third quarter worth $227,000. GAMMA Investing LLC lifted its position in shares of Praxis Precision Medicines by 30.1% in the third quarter. GAMMA Investing LLC now owns 432 shares of the company's stock worth $126,000 after purchasing an additional 100 shares in the last quarter. Finally, Integrated Wealth Concepts LLC bought a new stake in shares of Praxis Precision Medicines in the second quarter worth $38,000. Institutional investors and hedge funds 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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