CRISPR Therapeutics (NASDAQ:CRSP) Trading Down 2% - What's Next?

CRISPR Therapeutics AG (NASDAQ:CRSP) saw its stock price decrease by 2% on Friday, falling to a low of $49.31 before finishing the day at $49.44. During the trading session, approximately 584,895 shares of the stock changed hands, which is a significant decline of 75% compared to its average daily trading volume of 2,371,877 shares. The previous closing price for the stock was $50.43.

Analyst Ratings Updates

Recently, several equity research analysts have expressed their views on CRISPR Therapeutics. StockNews.com downgraded the rating of CRISPR Therapeutics to a "sell" in a research report dated February 13th. TD Cowen upgraded the stock from "sell" to "hold"," setting a target price of $35.00 as of February 12th. Additionally, Needham & Company LLC maintained a "buy" rating and set a target price of $84.00 for CRISPR Therapeutics on the same day. The Goldman Sachs Group lowered their target price from $66.00 to $57.00 and assigned a "neutral" rating on February 13th. Stifel Nicolaus also revised their target, moving it from $53.00 to $49.00 while rating it as "hold" on February 13th. Overall, two analysts hold a sell rating, nine assign a hold rating, and twelve rate it as a buy, according to MarketBeat.com, resulting in an average rating of "Hold" and an average target price of $74.40.

Recent Stock Performance

The stock has witnessed a drop of 5.2% recently. Currently, it has a 50-day simple moving average of $42.16 and a 200-day simple moving average of $46.07. The market capitalization of CRISPR Therapeutics stands at approximately $4.10 billion, with a price-to-earnings (PE) ratio of -10.94 and a beta of 1.67.

In its last earnings report on February 11th, CRISPR Therapeutics reported an earnings loss of ($0.44) per share, surpassing analysts' expectations which set the loss at ($1.15), beating estimates by $0.71. The company reported a strikingly negative net margin of 981.54% and a return on equity of -18.46%, with analysts projecting that CRISPR Therapeutics will end the year with earnings of -$5.03 per share.

Insider Transactions

In addition to market activity, there have also been insider transactions. CEO Samarth Kulkarni recently sold 15,000 shares in a transaction dated December 2nd, for an average price of $55.10, totaling $826,500. Following this sale, Kulkarni retains ownership of 181,540 shares of CRISPR Therapeutics, valued at approximately $10 million, indicating a 7.63% decrease in ownership. Such transactions are disclosed in legal filings with the Securities & Exchange Commission.

Institutional Trading Activity

Institutional investors and hedge funds have made recent changes to their stakes in CRISPR Therapeutics. Blue Trust Inc. increased its stake by 158.7% in the third quarter. After acquiring an additional 2,358 shares, they own 3,844 shares now, valued at $181,000. Eastern Bank and International Assets Investment Management have also recently invested in CRISPR Therapeutics, indicating growing institutional interest. Hedge funds now control 69.20% of the company's stock.

Company Overview

CRISPR Therapeutics is recognized as a leader in gene editing, focusing on creating innovative gene-based medicines for serious health conditions utilizing its proprietary CRISPR/Cas9 technology. This technology facilitates precise modifications to genomic DNA. The company is developing a wide range of therapeutic programs targeting diseases like hemoglobinopathies, cancer, regenerative medicine, and rare conditions.

Conclusion

The recent downturn in CRISPR Therapeutics' stock price raises questions for investors about whether to hold or sell. With mixed analyst ratings and significant insider activity, potential investors should weigh market sentiment against their personal financial goals.

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