Prime Medicine (NYSE:PRME) Shares Gap Down - Should You Sell?

Key Points

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Prime Medicine, Inc. (NYSE:PRME - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $3.92, but opened at $3.62. Prime Medicine shares last traded at $3.70, with a volume of 3,005,966 shares changing hands.

Wall Street Analyst Weigh In

PRME has been the subject of a number of recent research reports. Wedbush reiterated an "outperform" rating and set a $8.00 price target on shares of Prime Medicine in a report on Wednesday, July 16th. JPMorgan Chase & Co. restated a "neutral" rating on shares of Prime Medicine in a research note on Tuesday, May 20th. HC Wainwright lowered shares of Prime Medicine from a "buy" rating to a "neutral" rating in a report on Tuesday, May 20th. JMP Securities decreased their price target on shares of Prime Medicine from $10.00 to $6.00 and set a "market outperform" rating for the company in a research report on Tuesday, May 20th. Finally, Chardan Capital cut their price objective on Prime Medicine from $16.00 to $12.00 and set a "buy" rating on the stock in a research report on Monday, May 19th. One research analyst has rated the stock with a sell rating, three have given a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $9.25.

Prime Medicine Stock Up 8.0%

The firm's 50 day moving average price is $2.82 and its two-hundred day moving average price is $2.30. The firm has a market capitalization of $543.36 million, a PE ratio of -1.97 and a beta of 2.33.

Insider Transactions at Prime Medicine

In other Prime Medicine news, major shareholder David R. Liu acquired 21,000 shares of the company's stock in a transaction on Monday, June 23rd. The shares were bought at an average cost of $2.16 per share, for a total transaction of $45,360.00. Following the acquisition, the insider directly owned 20,219,945 shares of the company's stock, valued at $43,675,081.20. This trade represents a 0.10% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Arch Venture Partners Xii, Llc purchased 3,030,300 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was bought at an average cost of $3.30 per share, for a total transaction of $9,999,990.00. Following the completion of the acquisition, the insider directly owned 6,230,300 shares of the company's stock, valued at $20,559,990. This represents a 94.70% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last three months, insiders acquired 3,093,300 shares of company stock valued at $10,110,240. 22.93% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Prime Medicine

Institutional investors and hedge funds have recently made changes to their positions in the company. T. Rowe Price Investment Management Inc. grew its stake in Prime Medicine by 4.2% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,143,096 shares of the company's stock worth $8,245,000 after buying an additional 165,268 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Prime Medicine by 2.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,584,476 shares of the company's stock worth $4,628,000 after buying an additional 38,515 shares during the period. Geode Capital Management LLC grew its holdings in Prime Medicine by 7.9% in the 4th quarter. Geode Capital Management LLC now owns 1,467,606 shares of the company's stock worth $4,287,000 after buying an additional 107,627 shares in the last quarter. Westwood Holdings Group Inc. increased its position in Prime Medicine by 96.5% in the 4th quarter. Westwood Holdings Group Inc. now owns 883,129 shares of the company's stock valued at $2,579,000 after acquiring an additional 433,653 shares during the period. Finally, Northern Trust Corp raised its stake in Prime Medicine by 3.9% during the 4th quarter. Northern Trust Corp now owns 544,937 shares of the company's stock valued at $1,591,000 after acquiring an additional 20,389 shares in the last quarter. 70.37% of the stock is owned by institutional investors and hedge funds.

About Prime Medicine

Prime Medicine, Inc, a biotechnology company, delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. The company offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence.