Prime Medicine (NYSE:PRME) Trading Up 6.9% - Here's Why

Key Points

• Prime Medicine's stock price increased by 6.9% to $4.10 amid reduced trading volume of approximately 462,317 shares, significantly lower than its average daily volume.
• Analyst ratings on Prime Medicine are mixed, with a consensus rating of "Moderate Buy" and a target price averaging $9.25, down from earlier targets set by different firms.
• Insider activity saw major shareholder David R. Liu purchase 21,000 shares at $2.16 each, indicating continued confidence in the company's potential.

Prime Medicine, Inc. (NYSE:PRME - Get Free Report)'s share price was up 6.9% during trading on Wednesday . The company traded as high as $4.07 and last traded at $4.10. Approximately 462,317 shares traded hands during trading, a decline of 80% from the average daily volume of 2,318,446 shares. The stock had previously closed at $3.83.

Analyst Ratings Changes

Several research firms have issued reports on PRME. JPMorgan Chase & Co. reissued a "neutral" rating on shares of Prime Medicine in a research note on Tuesday, May 20th. HC Wainwright cut Prime Medicine from a "buy" rating to a "neutral" rating in a research note on Tuesday, May 20th. Citigroup reissued a "neutral" rating and set a $1.50 target price (down previously from $10.00) on shares of Prime Medicine in a research note on Tuesday, May 27th. Chardan Capital cut their target price on Prime Medicine from $16.00 to $12.00 and set a "buy" rating for the company in a research note on Monday, May 19th. Finally, Wedbush reissued an "outperform" rating and set a $8.00 target price on shares of Prime Medicine in a research note on Wednesday, July 16th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $9.25.

Prime Medicine Price Performance

The stock has a 50 day moving average price of $2.82 and a two-hundred day moving average price of $2.30. The firm has a market capitalization of $543.36 million, a price-to-earnings ratio of -1.97 and a beta of 2.33.

Insiders Place Their Bets

In other news, major shareholder David R. Liu acquired 21,000 shares of the company's stock in a transaction dated Monday, June 23rd. The stock was acquired 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 $43,675,081.20. This represents a 0.10% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, major shareholder Arch Venture Partners Xii, Llc acquired 3,030,300 shares of the company's stock in a transaction dated 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 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. Insiders bought 3,093,300 shares of company stock valued at $10,110,240 over the last ninety days. Insiders own 22.93% of the company's stock.

Institutional Investors Weigh In On Prime Medicine

Institutional investors have recently modified their holdings of the company. Freedom Investment Management Inc. acquired a new position in Prime Medicine during the 2nd quarter worth $26,000. R Squared Ltd acquired a new position in Prime Medicine during the 2nd quarter worth $31,000. American Century Companies Inc. acquired a new position in Prime Medicine during the 4th quarter worth $33,000. JTC Employer Solutions Trustee Ltd acquired a new position in Prime Medicine during the 2nd quarter worth $33,000. Finally, CWM LLC grew its stake in Prime Medicine by 741.5% during the 1st quarter. CWM LLC now owns 20,466 shares of the company's stock worth $41,000 after purchasing an additional 18,034 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.