Beam Therapeutics (NASDAQ:BEAM) Stock Jumps 11.3% – Should You Buy?

Beam Therapeutics Inc. (NASDAQ:BEAM) traded up 11.3% on Wednesday. The company traded as high as $27.92 and last traded at $27.7030. 2,530,090 shares traded hands during mid-day trading, an increase of 25% from the average daily volume of 2,030,983 shares. The stock had previously closed at $24.90.

Wall Street Analyst Weigh In

Several research firms recently weighed in on BEAM. HC Wainwright reaffirmed a “buy” rating on shares of Beam Therapeutics in a research report on Tuesday. Bank of America reissued a “buy” rating and issued a $47.00 target price on shares of Beam Therapeutics in a report on Wednesday, July 8th. Wall Street Zen upgraded shares of Beam Therapeutics from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 3rd. Wedbush dropped their target price on shares of Beam Therapeutics from $65.00 to $28.00 and set an “outperform” rating for the company in a research report on Wednesday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Beam Therapeutics in a report on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Beam Therapeutics has a consensus rating of “Moderate Buy” and an average price target of $46.40.

Beam Therapeutics Stock Performance

The company has a 50 day moving average price of $25.91 and a 200-day moving average price of $28.21. The company has a current ratio of 14.57, a quick ratio of 14.57 and a debt-to-equity ratio of 0.09. The company has a market cap of $2.93 billion, a P/E ratio of -33.00 and a beta of 2.20.

Beam Therapeutics (NASDAQ:BEAM) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($1.18) EPS for the quarter, missing analysts’ consensus estimates of ($1.11) by ($0.07). Beam Therapeutics had a negative return on equity of 30.71% and a negative net margin of 54.75%. The business had revenue of $0.49 million for the quarter, compared to analyst estimates of $16.37 million. During the same period last year, the firm posted ($1.00) EPS. Beam Therapeutics’s quarterly revenue was down 94.2% on a year-over-year basis. On average, equities analysts expect that Beam Therapeutics Inc. will post -4.49 earnings per share for the current fiscal year.

Insider Transactions at Beam Therapeutics

In other Beam Therapeutics news, CEO John Evans sold 25,000 shares of the business’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $23.57, for a total transaction of $589,250.00. Following the completion of the transaction, the chief executive officer owned 1,047,205 shares of the company’s stock, valued at approximately $24,682,621.85. The trade was a 2.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Beam Therapeutics in the 2nd quarter valued at approximately $308,796,000. ARCH Venture Management LLC bought a new stake in shares of Beam Therapeutics during the 2nd quarter valued at approximately $155,771,929. Dimensional Fund Advisors LP increased its position in Beam Therapeutics by 10.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,154,575 shares of the company’s stock worth $51,327,000 after purchasing an additional 206,696 shares in the last quarter. ADAR1 Capital Management LLC acquired a new position in Beam Therapeutics during the 1st quarter worth approximately $34,467,000. Finally, Bank of America Corp DE acquired a new stake in Beam Therapeutics in the second quarter valued at approximately $24,733,000. Institutional investors own 99.68% of the company’s stock.

Beam Therapeutics Company Profile

Beam Therapeutics Inc is a biotechnology company developing precision genetic medicines for patients with serious diseases. The company’s platform uses base editing, a form of gene editing designed to make targeted changes to individual DNA letters without creating double-strand breaks. Beam is also advancing related editing technologies and delivery systems intended to improve the precision and effectiveness of genetic treatments.

Beam’s pipeline includes investigational programs for diseases such as sickle cell disease, beta thalassemia, alpha-1 antitrypsin deficiency and glycogen storage disease type Ia.