Prime Medicine (NASDAQ:PRME) Shares Down 6.7% - Time to Sell?

Key Points

• Prime Medicine shares fell 6.7% in Monday mid-day trading to $4.34, while trading volume was 84% below its average.
• Analyst opinions are mixed, but the consensus rating is Moderate Buy, with an average price target of $7.47; ratings range from Sell to Strong Buy.
• The company’s latest quarterly loss of $0.24 per share matched estimates, but revenue of $1.15 million came in well below the $4.40 million forecast.

Prime Medicine, Inc. (NASDAQ:PRME - Get Free Report) fell 6.7% during mid-day trading on Monday. The company traded as low as $4.27 and last traded at $4.34. 530,106 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 3,282,958 shares. The stock had previously closed at $4.65.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Weiss Ratings reiterated a "sell (e+)" rating on shares of Prime Medicine in a research report on Monday, August 31st. BMO Capital Markets started coverage on shares of Prime Medicine in a report on Tuesday, August 18th. They issued an "outperform" rating and a $9.00 target price on the stock. Wall Street Zen upgraded shares of Prime Medicine from a "sell" rating to a "hold" rating in a report on Saturday, October 31st. Citigroup reaffirmed a "market outperform" rating on shares of Prime Medicine in a research report on Friday, September 25th. Finally, HC Wainwright reiterated a "buy" rating and set a $8.00 price target on shares of Prime Medicine in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $7.47.

Prime Medicine Price Performance

The stock has a market cap of $789.90 million, a price-to-earnings ratio of -4.09 and a beta of 2.14. The company's fifty day simple moving average is $3.65 and its two-hundred day simple moving average is $3.52.

Prime Medicine (NASDAQ:PRME - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.24) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.24). Prime Medicine had a negative net margin of 4,613.11% and a negative return on equity of 188.27%. The company had revenue of $1.15 million for the quarter, compared to analyst estimates of $4.40 million. On average, analysts forecast that Prime Medicine, Inc. will post -0.97 earnings per share for the current year.

Hedge Funds Weigh In On Prime Medicine

Several hedge funds have recently modified their holdings of PRME. Alphabet Inc. bought a new stake in shares of Prime Medicine during the 2nd quarter worth $61,116,000. BlackRock Inc. purchased a new position in shares of Prime Medicine in the 2nd quarter worth about $35,432,000. Sumitomo Mitsui Trust Group Inc. grew its position in Prime Medicine by 20.7% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,911,596 shares of the company's stock valued at $8,895,000 after buying an additional 498,612 shares during the period. ADAR1 Capital Management LLC bought a new position in Prime Medicine during the second quarter valued at about $7,371,000. Finally, Redmile Group LLC bought a new position in Prime Medicine during the first quarter valued at about $5,536,000. Institutional investors own 70.37% of the company's stock.

Prime Medicine Company Profile

Prime Medicine, Inc is a biotechnology company developing genetic medicines based on prime editing, a gene-editing technology designed to make targeted changes to DNA, including substitutions, insertions and deletions. The company's platform is intended to address disease-causing genetic mutations without necessarily creating double-strand breaks in DNA.

Prime Medicine is applying its technology to develop treatments for a range of genetic diseases, with a focus on areas such as hematology, immunology and liver disorders.

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