Prime Medicine (NASDAQ:PRME) Shares Gap Up - Here's Why

Key Points

• Prime Medicine shares jumped: The stock opened at $3.56 versus a prior close of $3.21 and last traded near $3.52 on volume of approximately 2.45 million shares.
• Analyst sentiment is generally positive: The stock has a “Moderate Buy” consensus rating and an average price target of $7.47, although Weiss Ratings maintains a sell rating.
• Financial performance remains challenging: Prime Medicine reported a quarterly loss of $0.24 per share, revenue of $1.15 million versus $4.40 million expected, and significant negative margins; institutional investors own 70.37% of the stock.

Prime Medicine, Inc. (NASDAQ:PRME - Get Free Report)'s share price gapped up prior to trading on Tuesday. The stock had previously closed at $3.21, but opened at $3.56. Prime Medicine shares last traded at $3.5240, with a volume of 2,448,121 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on PRME shares. New Street Research set a $8.00 price objective on Prime Medicine in a research note on Monday, June 29th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Prime Medicine in a report on Monday, August 31st. HC Wainwright reissued a "buy" rating and issued a $8.00 price target on shares of Prime Medicine in a research note on Monday, August 10th. The Goldman Sachs Group set a $6.00 price objective on Prime Medicine in a report on Monday, June 22nd. Finally, Citigroup reissued a "market outperform" rating on shares of Prime Medicine in a research report on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $7.47.

Prime Medicine Stock Performance

The stock has a market capitalization of $638.09 million, a PE ratio of -3.32 and a beta of 2.37. The firm has a 50 day moving average of $3.24 and a 200-day moving average of $3.33.

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

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada increased its stake in shares of Prime Medicine by 89.3% in the first quarter. Royal Bank of Canada now owns 9,254 shares of the company's stock worth $32,000 after acquiring an additional 4,365 shares during the last quarter. Glen Eagle Advisors LLC purchased a new stake in shares of Prime Medicine during the 4th quarter worth about $35,000. Wealthfront Advisers LLC acquired a new stake in shares of Prime Medicine during the 1st quarter valued at about $36,000. Kingsview Wealth Management LLC bought a new stake in shares of Prime Medicine in the 2nd quarter valued at approximately $37,000. Finally, Sequoia Financial Advisors LLC acquired a new position in Prime Medicine in the first quarter worth approximately $41,000. Institutional investors and hedge funds own 70.37% of the company's stock.

Prime Medicine Company Profile

Prime Medicine, Inc NASDAQ: PRME 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 a broad range of genetic diseases while potentially reducing some of the limitations associated with earlier gene-editing approaches.

Prime Medicine is advancing an investigational pipeline of therapies for diseases caused by genetic mutations.

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