Prime Medicine (NASDAQ:PRME) Stock Price Up 6.1% - Still a Buy?

Key Points

• Prime Medicine shares rose 6.1% to about $3.06, though trading volume was 54% below the average session volume.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $7.47, despite one sell rating and one hold rating.
• The company remains financially challenged, reporting $1.15 million in quarterly revenue, a net loss, and projected full-year EPS of -$0.96. Institutional investors own 70.37% of the stock, including new positions from Alphabet and BlackRock.

Prime Medicine, Inc. (NASDAQ:PRME - Get Free Report) rose 6.1% during trading on Tuesday. The company traded as high as $3.03 and last traded at $3.0550. Approximately 1,343,439 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 2,935,043 shares. The stock had previously closed at $2.88.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of Prime Medicine in a research note on Monday, August 31st. New Street Research set a $8.00 target price on Prime Medicine in a report on Monday, June 29th. Chardan Capital reiterated a "buy" rating and issued a $7.00 price target on shares of Prime Medicine in a research report on Friday. Wall Street Zen upgraded Prime Medicine from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. Finally, Citigroup reiterated a "market outperform" rating on shares of Prime Medicine in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Prime Medicine presently has an average rating of "Moderate Buy" and a consensus price target of $7.47.

Prime Medicine Stock Performance

The firm has a market cap of $550.49 million, a P/E ratio of -2.87 and a beta of 2.34. The stock's 50 day simple moving average is $3.24 and its 200 day simple moving average is $3.35.

Prime Medicine (NASDAQ:PRME - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.24) EPS for the quarter, hitting analysts' consensus estimates of ($0.24). The firm had revenue of $1.15 million during the quarter, compared to analyst estimates 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, analysts forecast that Prime Medicine, Inc. will post -0.96 EPS for the current fiscal year.

Institutional Trading of Prime Medicine

Institutional investors have recently made changes to their positions in the company. Alphabet Inc. bought a new position in shares of Prime Medicine during the 2nd quarter worth approximately $61,116,000. BlackRock Inc. purchased a new position in shares of Prime Medicine during the 2nd quarter valued at $35,432,000. Redmile Group LLC bought a new position in shares of Prime Medicine during the 1st quarter worth $5,536,000. ADAR1 Capital Management LLC bought a new position in shares of Prime Medicine during the 2nd quarter worth $7,371,000. Finally, Bank of New York Mellon Corp purchased a new stake in Prime Medicine in the 2nd quarter worth about $909,000. 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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