Prime Medicine (NASDAQ:PRME) Stock Price Down 8.1% - Here's Why

Key Points

• Prime Medicine shares fell 8.1% to about $3.43, with trading volume down 83% from the average session volume.
• Analyst sentiment remains largely positive, with a consensus “Moderate Buy” rating and an average price target of $7.47, although Wall Street Zen downgraded the stock to “Sell.”
• The biotechnology company reported a quarterly loss of $0.24 per share and revenue of $1.15 million, well below the $4.40 million analyst expectation; institutional investors own 70.37% of the stock.

Prime Medicine, Inc. (NASDAQ:PRME - Get Free Report) shares were down 8.1% during trading on Friday. The company traded as low as $3.38 and last traded at $3.4290. Approximately 531,810 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 3,124,860 shares. The stock had previously closed at $3.73.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Citigroup reaffirmed a "market outperform" rating on shares of Prime Medicine in a research report on Friday, September 25th. 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 price target on the stock. Jefferies Financial Group restated a "market outperform" rating on shares of Prime Medicine in a report on Monday, September 28th. HC Wainwright restated a "buy" rating and issued a $8.00 price objective on shares of Prime Medicine in a research note on Monday, August 10th. Finally, Wall Street Zen downgraded Prime Medicine from a "hold" rating to a "sell" rating in a research report on Saturday, October 3rd. One equities research 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. According to data from MarketBeat.com, Prime Medicine currently has a consensus rating of "Moderate Buy" and an average price target of $7.47.

Prime Medicine Stock Down 2.8%

The firm has a fifty day moving average of $3.39 and a 200 day moving average of $3.35. The stock has a market cap of $657.50 million, a PE ratio of -3.44 and a beta of 2.37.

Prime Medicine (NASDAQ:PRME - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.24) earnings per share (EPS) for the quarter, hitting 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, equities research analysts forecast that Prime Medicine, Inc. will post -0.97 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Alphabet Inc. acquired a new position in shares of Prime Medicine during the 2nd quarter worth about $61,116,000. BlackRock Inc. acquired a new stake in Prime Medicine during the second quarter worth approximately $35,432,000. ADAR1 Capital Management LLC acquired a new stake in shares of Prime Medicine during the second quarter worth $7,371,000. Redmile Group LLC bought a new position in shares of Prime Medicine in the first quarter worth $5,536,000. Finally, Bank of America Corp DE bought a new position in shares of Prime Medicine in the second quarter worth about $3,621,000. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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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