Praxis Precision Medicines (NASDAQ:PRAX) Shares Gap Down on Disappointing Earnings

Praxis Precision Medicines, Inc. (NASDAQ:PRAX - Get Free Report)'s stock price gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $65.03, but opened at $39.73. Praxis Precision Medicines shares last traded at $39.56, with a volume of 730,724 shares.

The company reported ($2.94) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.76) by ($0.18). Praxis Precision Medicines had a negative net margin of 9,409.22% and a negative return on equity of 54.86%. The company had revenue of $7.48 million during the quarter, compared to analyst estimates of $0.36 million.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Needham & Company LLC cut their price objective on Praxis Precision Medicines from $150.00 to $85.00 and set a "buy" rating for the company in a research report on Monday. Deutsche Bank Aktiengesellschaft assumed coverage on Praxis Precision Medicines in a research report on Tuesday, February 11th. They issued a "buy" rating and a $111.00 price objective for the company. Truist Financial cut their price objective on Praxis Precision Medicines from $175.00 to $85.00 and set a "buy" rating for the company in a research report on Monday. HC Wainwright cut their price objective on Praxis Precision Medicines from $120.00 to $105.00 and set a "buy" rating for the company in a research report on Monday. Finally, Robert W. Baird cut their price objective on Praxis Precision Medicines from $117.00 to $73.00 and set an "outperform" rating for the company in a research report on Monday. One research analyst has rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $123.80.

Institutional Trading of Praxis Precision Medicines

Large investors have recently made changes to their positions in the company. CIBC Asset Management Inc increased its position in shares of Praxis Precision Medicines by 47.3% during the fourth quarter. CIBC Asset Management Inc now owns 366,756 shares of the company's stock worth $28,226,000 after purchasing an additional 117,817 shares in the last quarter. Barclays PLC boosted its stake in Praxis Precision Medicines by 126.8% during the third quarter. Barclays PLC now owns 37,130 shares of the company's stock worth $2,136,000 after buying an additional 20,759 shares during the last quarter. Franklin Resources Inc. boosted its stake in Praxis Precision Medicines by 85.6% during the third quarter. Franklin Resources Inc. now owns 445,233 shares of the company's stock worth $25,619,000 after buying an additional 205,335 shares during the last quarter. BNP Paribas Financial Markets boosted its stake in Praxis Precision Medicines by 369.4% during the third quarter. BNP Paribas Financial Markets now owns 9,525 shares of the company's stock worth $548,000 after buying an additional 7,496 shares during the last quarter. Finally, China Universal Asset Management Co. Ltd. acquired a new position in Praxis Precision Medicines during the fourth quarter worth $304,000. 67.84% of the stock is currently owned by hedge funds and other institutional investors.

Praxis Precision Medicines Price Performance

The stock has a 50 day simple moving average of $76.23 and a two-hundred day simple moving average of $69.79. The company has a market cap of $681.13 million, a price-to-earnings ratio of -3.53 and a beta of 2.65.

Praxis Precision Medicines Company Profile

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.