Wedbush Issues Pessimistic Estimate for PRAX Earnings

Key Points

• Wedbush has downgraded its earnings estimates for Praxis Precision Medicines, forecasting Q3 2025 earnings at ($3.23) per share, a decrease from the prior estimate of ($2.87).
• The company currently holds a market capitalization of $973.48 million and has a negative return on equity of 59.42% and a negative net margin of 2,137.48%.
• Despite the negative outlook from Wedbush, other analysts maintain a positive stance with multiple "buy" ratings and price targets ranging from $80.00 to $115.00.

Praxis Precision Medicines, Inc. (NASDAQ:PRAX - Free Report) - Research analysts at Wedbush cut their Q3 2025 earnings estimates for Praxis Precision Medicines in a note issued to investors on Monday, August 4th. Wedbush analyst L. Chico now expects that the company will post earnings per share of ($3.23) for the quarter, down from their previous estimate of ($2.87). Wedbush has a "Underperform" rating and a $28.00 price target on the stock. The consensus estimate for Praxis Precision Medicines' current full-year earnings is ($10.22) per share. Wedbush also issued estimates for Praxis Precision Medicines' Q4 2025 earnings at ($3.24) EPS, FY2025 earnings at ($13.08) EPS, Q1 2026 earnings at ($2.00) EPS, Q2 2026 earnings at ($2.04) EPS, Q3 2026 earnings at ($2.08) EPS, Q4 2026 earnings at ($2.13) EPS, FY2026 earnings at ($8.25) EPS, FY2027 earnings at ($6.96) EPS, FY2028 earnings at ($5.54) EPS and FY2029 earnings at ($3.93) EPS.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) last posted its earnings results on Monday, August 4th. The company reported ($3.31) EPS for the quarter, topping analysts' consensus estimates of ($3.40) by $0.09. Praxis Precision Medicines had a negative return on equity of 60.07% and a negative net margin of 2,137.48%.

Several other equities research analysts have also recently weighed in on the stock. Oppenheimer boosted their price target on shares of Praxis Precision Medicines from $97.00 to $115.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 8th. Chardan Capital restated a "buy" rating and issued a $80.00 target price on shares of Praxis Precision Medicines in a report on Tuesday, July 29th. HC Wainwright reaffirmed a "buy" rating and issued a $115.00 price target (up previously from $105.00) on shares of Praxis Precision Medicines in a report on Tuesday. Finally, Needham & Company LLC reissued a "buy" rating and set a $80.00 price objective on shares of Praxis Precision Medicines in a research note on Thursday, June 12th. One investment analyst has rated the stock with a sell rating and eight have given a buy rating to the stock. According to MarketBeat, Praxis Precision Medicines currently has a consensus rating of "Moderate Buy" and an average price target of $95.22.

Praxis Precision Medicines Stock Performance

Shares of PRAX traded down $1.33 during mid-day trading on Wednesday, hitting $45.94. 438,540 shares of the stock were exchanged, compared to its average volume of 543,862. The company has a market cap of $967.04 million, a PE ratio of -3.74 and a beta of 2.62. Praxis Precision Medicines has a 52-week low of $26.70 and a 52-week high of $91.83. The firm has a 50-day moving average of $48.11 and a two-hundred day moving average of $48.27.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Cormorant Asset Management LP boosted its position in Praxis Precision Medicines by 3.1% in the 1st quarter. Cormorant Asset Management LP now owns 1,745,000 shares of the company's stock worth $66,083,000 after purchasing an additional 51,781 shares in the last quarter. Adage Capital Partners GP L.L.C. increased its position in Praxis Precision Medicines by 188.1% during the first quarter. Adage Capital Partners GP L.L.C. now owns 1,742,758 shares of the company's stock worth $65,998,000 after purchasing an additional 1,137,748 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Praxis Precision Medicines by 7.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,208,522 shares of the company's stock worth $93,008,000 after buying an additional 88,442 shares during the last quarter. Vanguard Group Inc. grew its position in Praxis Precision Medicines by 2.2% in the first quarter. Vanguard Group Inc. now owns 1,087,020 shares of the company's stock worth $41,165,000 after acquiring an additional 23,381 shares during the period. Finally, VR Adviser LLC increased its position in shares of Praxis Precision Medicines by 40.2% during the 4th quarter. VR Adviser LLC now owns 989,985 shares of the company's stock worth $76,189,000 after purchasing an additional 283,854 shares during the last quarter. 67.84% of the stock is currently owned by hedge funds and other institutional investors.

About Praxis Precision Medicines

Praxis Precision Medicines, Inc, a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. It is developing ulixacaltamide, a small molecule inhibitor of T-type calcium channels that is in Phase III clinical trial for the treatment of essential tremor; PRAX-562 for the treatment of pediatric patients with developmental and epileptic encephalopathies (DEE); and PRAX-628 to treat focal epilepsy.