Prime Medicine (NYSE:PRME) Trading 5.4% Higher - Should You Buy?

Key Points

• Prime Medicine's stock price rose by 5.4% to $4.23, despite a 73% decline in trading volume compared to its average.
• Analysts have mixed views, with JMP Securities lowering its price target to $6.00, while other firms like Wedbush maintain a target of $8.00.
• The company has a market cap of $611.77 million, and approximately 70.37% of its shares are owned by institutional investors and hedge funds.

Prime Medicine, Inc. (NYSE:PRME - Get Free Report) shares were up 5.4% during mid-day trading on Tuesday . The stock traded as high as $4.16 and last traded at $4.23. Approximately 698,373 shares were traded during trading, a decline of 73% from the average daily volume of 2,539,750 shares. The stock had previously closed at $4.01.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on PRME shares. Citigroup reaffirmed a "neutral" rating and set a $1.50 price objective (down from $10.00) on shares of Prime Medicine in a report on Tuesday, May 27th. Wedbush reissued an "outperform" rating and issued a $8.00 price target on shares of Prime Medicine in a research note on Wednesday, July 16th. Finally, Chardan Capital decreased their price target on shares of Prime Medicine from $12.00 to $10.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $8.92.

Prime Medicine Stock Down 4.5%

The firm has a market capitalization of $658.07 million, a price-to-earnings ratio of -2.39 and a beta of 2.38. The business's 50-day simple moving average is $3.91 and its two-hundred day simple moving average is $2.55.

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 that occurred on Monday, June 23rd. The stock was purchased at an average price of $2.16 per share, for a total transaction of $45,360.00. Following the completion of the acquisition, the insider owned 20,219,945 shares of the company's stock, valued at approximately $43,675,081.20. This trade represents a 0.10% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Arch Venture Partners Xii, Llc acquired 3,030,300 shares of the company's stock in a transaction that occurred on Friday, August 1st. The stock was acquired at an average price of $3.30 per share, with a total value of $9,999,990.00. Following the acquisition, the insider directly owned 6,230,300 shares of the company's stock, valued at approximately $20,559,990. This represents a 94.70% increase in their position. The disclosure for this purchase can be found here. 22.74% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Bridgeway Capital Management LLC purchased a new position in Prime Medicine in the second quarter worth approximately $531,000. Bank of America Corp DE raised its position in Prime Medicine by 28.0% in the 2nd quarter. Bank of America Corp DE now owns 144,511 shares of the company's stock valued at $357,000 after purchasing an additional 31,585 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Prime Medicine by 253.4% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 119,856 shares of the company's stock valued at $296,000 after purchasing an additional 85,938 shares during the last quarter. Diametric Capital LP purchased a new stake in Prime Medicine in the 2nd quarter valued at $261,000. Finally, Greenwich Wealth Management LLC raised its position in Prime Medicine by 3.3% in the 2nd quarter. Greenwich Wealth Management LLC now owns 846,201 shares of the company's stock valued at $2,090,000 after purchasing an additional 27,200 shares during the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Prime Medicine Company Profile

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.