Praxis Precision Medicines (NASDAQ:PRAX) Shares Up 6.2% – Still a Buy?

Praxis Precision Medicines, Inc. (NASDAQ:PRAX)’s share price rose 6.2% during mid-day trading on Wednesday . The stock traded as high as $275.34 and last traded at $273.96. Approximately 204,249 shares changed hands during trading, a decline of 55% from the average daily volume of 452,172 shares. The stock had previously closed at $258.08.

Key Praxis Precision Medicines News

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

• Positive Sentiment: HC Wainwright trimmed its FY2030 EPS estimate but kept a Buy rating and a very bullish $1,201 price target, signaling long-term optimism even after the recent selloff. MarketBeat PRAX article
• Neutral Sentiment: The company announced inducement stock grants to attract new employees, a routine hiring-related update that is unlikely to materially affect near-term fundamentals. Inducement Grants article
• Negative Sentiment: Praxis reported that its Phase 2/3 POWER1 study of vormatrigine for focal onset seizures missed its primary endpoint, prompting the company to pause enrollment in the related POWER2 trial and reassess the program. Vormatrigine Program Update article
• Negative Sentiment: Multiple reports highlighted the trial miss and the stock’s post-announcement decline, reinforcing investor concerns about the company’s epilepsy pipeline and clinical execution risk. Reuters article

Analysts Set New Price Targets

PRAX has been the topic of several recent research reports. BTIG Research reiterated a “buy” rating and set a $810.00 target price (down from $843.00) on shares of Praxis Precision Medicines in a report on Tuesday. TD Cowen restated a “buy” rating on shares of Praxis Precision Medicines in a report on Tuesday. Truist Financial set a $616.00 price target on shares of Praxis Precision Medicines and gave the company a “buy” rating in a report on Tuesday. Wells Fargo & Company set a $305.00 price target on shares of Praxis Precision Medicines and gave the company an “equal weight” rating in a report on Friday, February 20th. Finally, Jefferies Financial Group restated a “buy” rating on shares of Praxis Precision Medicines in a report on Thursday, May 7th. Four analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $572.72.

Praxis Precision Medicines Trading Up 5.1%

The stock has a market capitalization of $7.56 billion, a PE ratio of -20.29 and a beta of 2.71. The company’s 50-day moving average is $327.22 and its 200 day moving average is $296.62.

Praxis Precision Medicines (NASDAQ:PRAX) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($3.20) EPS for the quarter, beating the consensus estimate of ($3.58) by $0.38. Sell-side analysts forecast that Praxis Precision Medicines, Inc. will post -14.79 EPS for the current fiscal year.

Hedge Funds Weigh In On Praxis Precision Medicines

Hedge funds and other institutional investors have recently modified their holdings of the stock. NBC Securities Inc. purchased a new position in shares of Praxis Precision Medicines in the 4th quarter valued at approximately $38,000. Parallel Advisors LLC raised its position in shares of Praxis Precision Medicines by 3,000.0% in the 1st quarter. Parallel Advisors LLC now owns 124 shares of the company’s stock valued at $40,000 after purchasing an additional 120 shares during the last quarter. Danske Bank A S purchased a new position in shares of Praxis Precision Medicines in the 4th quarter valued at approximately $59,000. GAMMA Investing LLC raised its position in shares of Praxis Precision Medicines by 58.7% in the 4th quarter. GAMMA Investing LLC now owns 238 shares of the company’s stock valued at $70,000 after purchasing an additional 88 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its position in shares of Praxis Precision Medicines by 24.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,837 shares of the company’s stock valued at $77,000 after purchasing an additional 359 shares during the last quarter. 67.84% of the stock is owned by hedge funds and other institutional investors.

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.