Prime Medicine (NASDAQ:PRME) Shares Up 11.8% - Should You Buy?

Key Points

• Prime Medicine shares jumped 11.8% to $3.3550, although trading volume was 76% below the stock’s average daily volume.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $7.47—more than double the recent share price.
• The company remains financially challenged: quarterly revenue of $1.15 million fell short of the $4.40 million estimate, while Prime Medicine reported a $0.24-per-share loss and expects a full-year loss of $0.96 per share.

Prime Medicine, Inc. (NASDAQ:PRME - Get Free Report) shares rose 11.8% during trading on Thursday . The company traded as high as $3.36 and last traded at $3.3550. 690,843 shares were traded during trading, a decline of 76% from the average daily volume of 2,881,769 shares. The stock had previously closed at $3.00.

Analyst Ratings Changes

Several research analysts have weighed in on PRME shares. Citigroup reissued a "market outperform" rating on shares of Prime Medicine in a research report on Monday, June 22nd. TD Cowen reiterated a "buy" rating on shares of Prime Medicine in a research note on Wednesday, July 8th. Wall Street Zen upgraded shares of Prime Medicine from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. New Street Research set a $8.00 price objective on shares of Prime Medicine in a report on Monday, June 29th. Finally, BMO Capital Markets initiated coverage on shares of Prime Medicine in a research report on Tuesday, August 18th. They issued an "outperform" rating and a $9.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, Prime Medicine presently has an average rating of "Moderate Buy" and a consensus target price of $7.47.

Prime Medicine Stock Performance

The firm has a 50 day simple moving average of $3.30 and a 200 day simple moving average of $3.42. The firm has a market cap of $584.95 million, a P/E ratio of -3.04 and a beta of 2.34.

Prime Medicine (NASDAQ:PRME - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported ($0.24) earnings per share for the quarter, meeting the consensus estimate of ($0.24). Prime Medicine had a negative return on equity of 188.27% and a negative net margin of 4,613.11%.The firm had revenue of $1.15 million for the quarter, compared to analysts' expectations of $4.40 million. Sell-side analysts predict that Prime Medicine, Inc. will post -0.96 EPS for the current fiscal year.

Institutional Trading of Prime Medicine

Several institutional investors and hedge funds have recently bought and sold shares of PRME. Arizona State Retirement System increased its holdings in shares of Prime Medicine by 15.5% in the second quarter. Arizona State Retirement System now owns 28,646 shares of the company's stock worth $106,000 after purchasing an additional 3,855 shares during the period. Syon Capital LLC purchased a new stake in shares of Prime Medicine in the second quarter worth $41,000. Concurrent Investment Advisors LLC boosted its stake in Prime Medicine by 77.6% during the second quarter. Concurrent Investment Advisors LLC now owns 131,722 shares of the company's stock valued at $486,000 after buying an additional 57,545 shares during the period. Wellington Management Group LLP purchased a new position in Prime Medicine during the second quarter worth about $1,123,000. Finally, Kingsview Wealth Management LLC purchased a new stake in shares of Prime Medicine in the 2nd quarter valued at about $37,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

About Prime Medicine

Prime Medicine, Inc is a biotechnology company developing genetic medicines using its proprietary Prime Editing platform. The company's technology is designed to make precise changes to DNA, including the insertion, deletion, or replacement of genetic sequences, with the goal of addressing disease-causing mutations.

Prime Medicine is focused on developing treatments for genetic diseases and other serious conditions. Its research programs use Prime Editing in approaches that may modify a patient's own cells, including ex vivo cell-editing applications in which cells are edited outside the body and then returned to the patient.

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