What's Going On With Crispr Therapeutics Stock?

Crispr Therapeutics CRSP shares are trading higher Thursday after Wolfe Research analyst Andy Chen initiated coverage on Crispr Therapeutics with a Peer Perform rating. Here's a look at what's going on. 

What To Know:

Crispr Therapeutics’ shares have risen nearly 37% over the past month following the FDA approval of Casgevy (exagamglogene autotemcel [exa-cel]), a CRISPR/Cas9 gene-edited cell therapy, for transfusion-dependent beta-thalassemia (TDT) in patients 12 years and older on Jan. 16. 

On Tuesday, Crispr Therapeutics announced that it has entered into an agreement for the sale of approximately $280 million of its common shares to a select group of institutional investors in a registered direct offering, at a price per share of $71.50, representing a premium of greater than 10% to the stock's 30-day volume-weighted average price. 

“We are well positioned to execute on our on-going clinical trials in oncology, cardiovascular and diabetes, and further accelerate our auto-immune and in vivo gene writing programs, setting up a catalyst-rich 12-18 months for the company," said Samarth Kulkarni, Ph.D., CEO of Crispr Therapeutics.

"This financing bolsters our already strong balance sheet, provides the opportunity for additional value creation, and gives us the flexibility to reach sustainability without requiring additional capital,” Kulkarni added. 

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CRSP Stock Prediction 2030

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For Crispr Therapeutics, over the past 5 years, it's annualized stock performance is 19.52%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $213.53.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

CRSP Price Action: According to Benzinga Pro, Crispr Therapeutics shares are up 8.2% at $85.52 at the time of publication.

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