Praxis Precision Medicines (NASDAQ:PRAX) Stock Price Down 3.4% – Should You Sell?

Praxis Precision Medicines, Inc. (NASDAQ:PRAX) dropped 3.4% during trading on Tuesday . The company traded as low as $285.95 and last traded at $294.1050. Approximately 209,839 shares changed hands during trading, a decline of 65% from the average daily volume of 604,082 shares. The stock had previously closed at $304.58.

Key Headlines Impacting Praxis Precision Medicines

Here are the key news stories impacting Praxis Precision Medicines this week:

• Positive Sentiment: FDA Breakthrough Therapy designation announced (company release) — Praxis confirmed the Breakthrough Therapy Designation for ulixacaltamide HCl based on positive Essential3 Phase 3 topline data, which is the primary catalyst for the rally. Praxis Announces Breakthrough Therapy Designation (GlobeNewswire)
• Positive Sentiment: Major financial press highlights the news — MarketWatch and other outlets covered the Breakthrough designation and its implications for approval timelines and market opportunity, reinforcing investor demand. Praxis Gets FDA Breakthrough Designation for Essential Tremor Drug (MarketWatch)
• Positive Sentiment: Market reaction and commentary — Coverage from Investing.com, TipRanks, The Motley Fool and AAII explains why the stock spiked (large unmet need in movement disorders, potential for faster approval and clearer commercial path). These analyses amplified buying. Praxis Stock Soars After FDA Breakthrough Status (Investing.com)
• Neutral Sentiment: Roundups list PRAX among top movers — Aggregator stories (MSN, market movers lists) note PRAX’s volatility as part of broader market moves but add little new information beyond the Breakthrough news. These stocks are moving the most today (MSN)
• Neutral Sentiment: Investor takeaway / risks — Breakthrough designation can accelerate review and support commercial value, but approval, launch execution, pricing/reimbursement and typical biotech volatility remain key risks for investors (no new data beyond topline yet).

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. UBS Group set a $750.00 price target on shares of Praxis Precision Medicines in a report on Monday, December 15th. Deutsche Bank Aktiengesellschaft set a $313.00 target price on shares of Praxis Precision Medicines in a research report on Friday, December 12th. Cowen reaffirmed a “buy” rating on shares of Praxis Precision Medicines in a research note on Monday, December 8th. Guggenheim reiterated a “buy” rating on shares of Praxis Precision Medicines in a report on Monday. Finally, Citigroup restated a “conviction-buy” rating on shares of Praxis Precision Medicines in a research note on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $426.20.

Praxis Precision Medicines Stock Performance

The firm has a 50 day moving average price of $213.52 and a 200-day moving average price of $109.21. The company has a market cap of $7.24 billion, a P/E ratio of -22.51 and a beta of 2.95.

Praxis Precision Medicines (NASDAQ:PRAX) last announced its earnings results on Wednesday, November 5th. The company reported ($3.36) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($3.45) by $0.09. On average, sell-side analysts forecast that Praxis Precision Medicines, Inc. will post -10.22 EPS for the current fiscal year.

Insider Buying and Selling at Praxis Precision Medicines

In other Praxis Precision Medicines news, insider Lauren Mastrocola sold 13,600 shares of the business’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $192.08, for a total transaction of $2,612,288.00. Following the completion of the transaction, the insider owned 10,442 shares of the company’s stock, valued at $2,005,699.36. The trade was a 56.57% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Alex Nemiroff sold 25,130 shares of the company’s stock in a transaction dated Thursday, November 20th. The shares were sold at an average price of $193.09, for a total transaction of $4,852,351.70. Following the sale, the general counsel owned 20,832 shares of the company’s stock, valued at $4,022,450.88. This trade represents a 54.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Praxis Precision Medicines

Large investors have recently made changes to their positions in the business. Woodline Partners LP grew its holdings in Praxis Precision Medicines by 808.9% in the 3rd quarter. Woodline Partners LP now owns 417,669 shares of the company’s stock valued at $22,136,000 after buying an additional 371,717 shares during the last quarter. Dark Forest Capital Management LP acquired a new stake in shares of Praxis Precision Medicines in the third quarter worth $1,149,000. Alyeska Investment Group L.P. increased its position in Praxis Precision Medicines by 13.2% during the third quarter. Alyeska Investment Group L.P. now owns 141,516 shares of the company’s stock worth $7,500,000 after acquiring an additional 16,516 shares during the period. Vivo Capital LLC increased its position in Praxis Precision Medicines by 18.7% during the third quarter. Vivo Capital LLC now owns 198,895 shares of the company’s stock worth $10,541,000 after acquiring an additional 31,295 shares during the period. Finally, Quarry LP raised its stake in Praxis Precision Medicines by 316.7% during the 3rd quarter. Quarry LP now owns 20,001 shares of the company’s stock valued at $1,060,000 after purchasing an additional 15,201 shares during the last quarter. Institutional investors and hedge funds own 67.84% of the company’s stock.

About Praxis Precision Medicines

Praxis Precision Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing precision therapies for disorders driven by neuronal excitability. The company applies translational neuroscience and genetic insights to design small molecule drugs that target specific ion channels and receptor subtypes implicated in neurological and psychiatric conditions. Its research aims to address unmet needs in rare epilepsies, essential tremor, treatment-resistant depression and other central nervous system (CNS) disorders.

The company’s pipeline includes several lead candidates at various stages of development.