Prime Medicine (NASDAQ:PRME) Sees Unusually-High Trading Volume – Still a Buy?

Shares of Prime Medicine, Inc. (NASDAQ:PRME) saw strong trading volume on Wednesday. 3,609,477 shares traded hands during mid-day trading, an increase of 10% from the average daily volume of 3,296,173 shares. The stock last traded at $3.9110 and had previously closed at $3.90.

Key Headlines Impacting Prime Medicine

These are some of the PRME headlines that stood out recently:

• Positive Sentiment: The sale is expected to raise approximately $125 million in gross proceeds for Prime Medicine, providing additional capital to develop its investigational therapies. The offering is expected to close around November 12, subject to customary conditions. Prime Medicine Announces Pricing of Public Offering of Common Stock
• Negative Sentiment: Prime Medicine is issuing 35.7 million new shares at $3.50 per share, with underwriters able to buy up to 5.36 million additional shares. The added shares dilute existing investors, and the offering price is below the recent trading level, potentially creating near-term downward pressure on PRME. Prime Medicine Prices Offering

Analysts Set New Price Targets

A number of research firms have recently commented on PRME. Chardan Capital restated a “buy” rating and issued a $7.00 target price on shares of Prime Medicine in a research note on Friday, September 25th. HC Wainwright reaffirmed a “buy” rating and issued a $8.00 price target on shares of Prime Medicine in a research note on Monday, August 10th. Wall Street Zen upgraded Prime Medicine from a “sell” rating to a “hold” rating in a report on Saturday, October 31st. Jefferies Financial Group reissued a “market outperform” rating on shares of Prime Medicine in a research report on Monday, September 28th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Prime Medicine in a report on Monday, August 31st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $7.86.

Prime Medicine Trading Up 9.4%

The firm has a market capitalization of $773.59 million, a P/E ratio of -4.01 and a beta of 2.14. The stock has a 50 day simple moving average of $3.67 and a 200-day simple moving average of $3.51.

Hedge Funds Weigh In On Prime Medicine

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PRME. Royal Bank of Canada grew its stake in shares of Prime Medicine by 89.3% in the 1st quarter. Royal Bank of Canada now owns 9,254 shares of the company’s stock worth $32,000 after buying an additional 4,365 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in Prime Medicine in the 3rd quarter worth about $28,000. Kingsview Wealth Management LLC purchased a new position in Prime Medicine during the 2nd quarter worth $37,000. Wealthfront Advisers LLC bought a new position in Prime Medicine during the 1st quarter worth about $36,000. Finally, Syon Capital LLC bought a new position in Prime Medicine in the second quarter worth approximately $41,000. 70.37% of the stock is owned by institutional investors.

Prime Medicine Company Profile

Prime Medicine is a biotechnology company developing genetic therapies for diseases caused by genetic mutations. Its research focuses on prime editing, a gene-editing technology designed to make targeted changes to DNA, including substitutions, insertions and deletions. The company is working to apply its platform to potential treatments for a range of serious conditions. Its programs are in development, and Prime Medicine does not currently market approved therapies. Founded in 2019, Prime Medicine is based in Cambridge, Massachusetts.