Prime Medicine (NYSE:PRME) Shares Down 6.7% - Time to Sell?

Key Points

• Prime Medicine's stock (NYSE:PRME) fell by 6.7% to $4.20 during mid-day trading, with a significant drop in trading volume of 57% compared to the average.
• Analyst ratings show mixed sentiment, with target prices ranging from $1.50 to $12.00 and a consensus average rating of "Moderate Buy."
• Insiders have been active, with major shareholders purchasing over 3 million shares recently, indicating confidence in the company's future prospects.

Prime Medicine, Inc. (NYSE:PRME - Get Free Report)'s stock price fell 6.7% during trading on Tuesday . The company traded as low as $4.16 and last traded at $4.20. 1,029,369 shares changed hands during trading, a decline of 57% from the average session volume of 2,403,093 shares. The stock had previously closed at $4.50.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on PRME. HC Wainwright lowered shares of Prime Medicine from a "buy" rating to a "neutral" rating in a report on Tuesday, May 20th. JMP Securities dropped their target price on shares of Prime Medicine from $10.00 to $6.00 and set a "market outperform" rating on the stock in a report on Tuesday, May 20th. JPMorgan Chase & Co. restated a "neutral" rating on shares of Prime Medicine in a report on Tuesday, May 20th. Chardan Capital dropped their target price on shares of Prime Medicine from $12.00 to $10.00 and set a "buy" rating on the stock in a report on Friday. Finally, Citigroup restated a "neutral" rating and issued a $1.50 target price (down previously from $10.00) on shares of Prime Medicine in a report on Tuesday, May 27th. One analyst has rated the stock with a sell rating, three have issued a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $8.92.

Prime Medicine Stock Up 3.0%

The stock has a market capitalization of $509.74 million, a P/E ratio of -1.85 and a beta of 2.39. The firm's 50 day simple moving average is $3.10 and its two-hundred day simple moving average is $2.34.

Insider Buying and Selling at Prime Medicine

In related news, major shareholder Arch Venture Partners Xii, Llc purchased 3,030,300 shares of the firm's stock in a transaction on Friday, August 1st. The stock was purchased at an average cost of $3.30 per share, with a total value of $9,999,990.00. Following the completion of the purchase, the insider owned 6,230,300 shares in the company, valued at approximately $20,559,990. This trade represents a 94.70% 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 David R. Liu purchased 21,000 shares of the firm's stock in a transaction on Monday, June 23rd. The stock was bought at an average cost of $2.16 per share, with a total value of $45,360.00. Following the completion of the purchase, the insider owned 20,219,945 shares of the company's stock, valued at approximately $43,675,081.20. This represents a 0.10% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders acquired 3,093,300 shares of company stock valued at $10,110,240. Insiders own 22.74% of the company's stock.

Institutional Investors Weigh In On Prime Medicine

Hedge funds and other institutional investors have recently made changes to their positions in the business. Creative Planning bought a new stake in shares of Prime Medicine during the second quarter worth about $25,000. Freedom Investment Management Inc. bought a new stake in shares of Prime Medicine during the second quarter worth about $26,000. American Century Companies Inc. bought a new stake in shares of Prime Medicine during the fourth quarter worth about $33,000. R Squared Ltd bought a new stake in shares of Prime Medicine during the second quarter worth about $31,000. Finally, JTC Employer Solutions Trustee Ltd bought a new stake in shares of Prime Medicine during the second quarter worth about $33,000. 70.37% of the stock is owned by institutional investors.

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.