Is Editas Medicine Inc. (NASDAQ: EDIT) Back In The Buying Zone?

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ARK Investment Management LLC recently announced the acquisition of new stake in Editas Medicine Inc. (NASDAQ:EDIT). The institutional investor has increased its shareholding in the Healthcare company by 19.98% to 5.34 million shares with purchase of 0.89 million shares. This fresh investment now brings its stake to 8.72% valued currently at $157.84 million. In addition, Nikko Asset Management Americas,. raised its holdings by 0.16 million to 5.11 million shares. And The Vanguard Group, Inc. has lifted its position by 2.29% or 0.1 million shares – to 4.56 million shares.

With over 0.64 million Editas Medicine Inc. (EDIT) shares trading Tuesday and a closing price of $30.20 on the day, the dollar volume was approximately $19.24 million. The shares have shown a negative weekly performance of -4.11% and its price on 07/21/20 lost nearly -0.40%. Currently, there are 54.59M common shares owned by the public and among those 53.70M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for EDIT have a consensus price objective of $38.88. The analysts have set the share’s price value over the next 12 months at a high of $55.00 and a low of $27.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Editas Medicine Inc. stock is 2.30 for the next 12 months. The average price target is 22.33% above its last price level and an upside to the estimated low will see the stock lose -11.85% over that period. But an upside of 45.09% will see the stock hit the forecast high price target while mean target price for the stock is $39.50.

Insiders at the company have transacted a total of 13 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 8 of these insider trades were purchases, accounting for 126,761 shares. Insider sales of the common stock occurred on 5 occasions, with total insider shares sold totaling 14,515 shares.

The top 3 mutual fund holders in Editas Medicine Inc. are ARK Innovation ETF, Nikko AM Global Umbrella Fund – A, and SPDR S&P Biotech ETF. ARK Innovation ETF owns 5.06 million shares of the company’s stock, all valued at over $149.57 million. The company bought an additional 24808.0 shares recently to bring their total holdings to about 8.26% of the shares outstanding. Nikko AM Global Umbrella Fund – A bought 3.29 million shares to see its total holdings expand to 3.32 million shares valued at over $98.29 million and representing 5.43% of the shares outstanding. SPDR S&P Biotech ETF bought 41753.0 shares to bring its total holdings to over 2.04 million shares at a value of $60.22 million. SPDR S&P Biotech ETF now owns shares totaling to 3.33% of the shares outstanding.

Shares of Editas Medicine Inc. (NASDAQ: EDIT) opened at $32.64, up $2.32 from a prior closing price of $30.32. However, the script later closed the day at $30.20, down -0.40%. The company’s stock has a 5-day price change of -4.11% and 28.26% over the past three months. EDIT shares are trading 2.40% year to date (YTD), with the 12-month market performance up to 22.31% higher. It has a 12-month low price of $14.01 and touched a high of $36.78 over the same period. Currently, 0.64 million shares have been traded, compared to an average intraday trading volume of 1.09 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.67%, 2.65%, and 16.33% respectively.

Institutional ownership of Editas Medicine Inc. (NASDAQ: EDIT) shares accounts for 67.50% of the company’s 54.59M shares outstanding. Mutual fund holders own 30.33%, while other institutional holders and individual stakeholders account for 47.59% and 20.85% respectively.

It has a market capitalization of $1.86B and a beta (3y monthly) value of 2.04. The earnings-per-share (ttm) stands at -$2.76. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.87% over the week and 6.46% over the month.

Analysts forecast that Editas Medicine Inc. (EDIT) will achieve an EPS of -$0.79 for the current quarter, -$0.78 for the next quarter and -$3.18 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.96 while analysts give the company a high EPS estimate of -$0.62. Comparatively, EPS for the current quarter was -$0.82 a year ago. Earnings per share for the fiscal year are expected to decrease by -14.60%, and -3.60% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate Editas Medicine Inc. (EDIT) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 5 of the 11 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the EDIT, a number of firms have released research notes about the stock. SunTrust stated their Buy rating for the stock in a research note on June 18, 2020, with the firm’s price target at $45. Wells Fargo coverage for the Editas Medicine Inc. (EDIT) stock in a research note released on February 21, 2020 offered a Equal Weight rating with a price target of $28. Evercore ISI was of a view on April 12, 2019 that the stock is Outperform, while Guggenheim gave the stock Neutral rating on October 10, 2018, issuing a price target of. Raymond James on their part issued Outperform rating on September 21, 2018.

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