Prime Medicine (NASDAQ:PRME) Stock Jumps 8.5% - Time to Buy?

Key Points

• Prime Medicine shares rose 8.5% to approximately $3.40, with trading volume below its daily average. The stock’s market capitalization is about $636 million.
• Analyst sentiment is generally positive: the stock has an average “Moderate Buy” rating and a consensus price target of $7.47, although one analyst maintains a sell rating.
• The company remains unprofitable, reporting a quarterly loss of $0.24 per share and revenue of $1.15 million versus $4.40 million expected. Prime Medicine is developing gene-editing therapies based on its prime-editing technology, while institutional investors own 70.37% of the stock.

Prime Medicine, Inc. (NASDAQ:PRME - Get Free Report)'s share price shot up 8.5% on Thursday. The company traded as high as $3.46 and last traded at $3.3950. Approximately 2,000,009 shares traded hands during mid-day trading, a decline of 35% from the average daily volume of 3,092,603 shares. The stock had previously closed at $3.13.

Analyst Ratings Changes

PRME has been the topic of several recent analyst reports. Chardan Capital reissued a "buy" rating and set a $7.00 target price on shares of Prime Medicine in a research note on Friday, September 25th. Jefferies Financial Group restated a "market outperform" rating on shares of Prime Medicine in a research note on Monday, September 28th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Prime Medicine in a report on Monday, August 31st. TD Cowen reiterated a "buy" rating on shares of Prime Medicine in a research report on Wednesday, July 8th. Finally, Citigroup reiterated a "market outperform" rating on shares of Prime Medicine in a research report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Sell rating to the company's stock. According to 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 $635.74 million, a PE ratio of -3.31 and a beta of 2.37. The stock's 50 day moving average is $3.32 and its two-hundred day moving average is $3.33.

Prime Medicine (NASDAQ:PRME - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.24) earnings per share (EPS) for the quarter, hitting 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 company had revenue of $1.15 million for the quarter, compared to analysts' expectations of $4.40 million. Equities research analysts expect that Prime Medicine, Inc. will post -0.97 EPS for the current fiscal year.

Institutional Trading of Prime Medicine

A number of institutional investors have recently made changes to their positions in PRME. Royal Bank of Canada raised its position 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 valued at $32,000 after buying an additional 4,365 shares during the last quarter. Wealthfront Advisers LLC acquired a new position in Prime Medicine during the first quarter worth about $36,000. Kingsview Wealth Management LLC acquired a new position in Prime Medicine during the second quarter worth about $37,000. Sequoia Financial Advisors LLC purchased a new stake in Prime Medicine during the 1st quarter valued at about $41,000. Finally, Syon Capital LLC purchased a new stake in Prime Medicine during the 2nd quarter valued at about $41,000. 70.37% of the stock is owned by institutional investors and hedge funds.

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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