Prime Medicine (NASDAQ:PRME) Stock Price Down 7.5% - Should You Sell?

Key Points

• Prime Medicine shares fell 7.5% to approximately $3.28, near the stock’s 50-day moving average, on trading volume well below its average.
• Analyst sentiment remains broadly positive despite the decline: the stock has a consensus rating of “Moderate Buy” and an average price target of $7.47, although Weiss Ratings maintains a sell rating.
• The company remains unprofitable, reporting a quarterly loss of $0.24 per share and $1.15 million in revenue versus $4.40 million expected. Prime Medicine is developing gene-editing treatments using its proprietary Prime Editing platform, while institutional investors own 70.37% of its shares.

Prime Medicine, Inc. (NASDAQ:PRME - Get Free Report) shares traded down 7.5% during mid-day trading on Wednesday . The company traded as low as $3.27 and last traded at $3.2750. Approximately 780,529 shares changed hands during trading, a decline of 73% from the average session volume of 2,894,425 shares. The stock had previously closed at $3.54.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on PRME. Weiss Ratings restated a "sell (e+)" rating on shares of Prime Medicine in a research report on Monday, August 31st. The Goldman Sachs Group set a $6.00 price target on shares of Prime Medicine in a research note on Monday, June 22nd. Citigroup restated a "market outperform" rating on shares of Prime Medicine in a research report on Monday, June 22nd. 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 assumed coverage on Prime Medicine in a research note on Tuesday, August 18th. They issued an "outperform" rating and a $9.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Prime Medicine currently has a consensus rating of "Moderate Buy" and an average target price of $7.47.

Prime Medicine Price Performance

The firm's 50 day simple moving average is $3.26 and its two-hundred day simple moving average is $3.38. The firm has a market capitalization of $575.88 million, a P/E ratio of -3.00 and a beta of 2.34.

Prime Medicine (NASDAQ:PRME - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.24) EPS for the quarter, hitting the consensus estimate of ($0.24). The firm had revenue of $1.15 million for the quarter, compared to the consensus estimate of $4.40 million. Prime Medicine had a negative return on equity of 188.27% and a negative net margin of 4,613.11%. As a group, equities research analysts forecast that Prime Medicine, Inc. will post -0.96 EPS for the current year.

Institutional Trading of Prime Medicine

A number of institutional investors have recently made changes to their positions in PRME. Arizona State Retirement System increased its stake 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 buying an additional 3,855 shares during the period. Syon Capital LLC purchased a new stake in Prime Medicine during the 2nd quarter valued at $41,000. Concurrent Investment Advisors LLC grew its holdings in Prime Medicine by 77.6% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 131,722 shares of the company's stock worth $486,000 after acquiring an additional 57,545 shares during the last quarter. Wellington Management Group LLP purchased a new position in shares of Prime Medicine in the second quarter valued at about $1,123,000. Finally, Kingsview Wealth Management LLC bought a new position in shares of Prime Medicine during the second quarter valued at about $37,000. Hedge funds and other institutional investors own 70.37% of the company's stock.

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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