Will CRISPR Stock Rebound After A 17% Fall In A Month?

by Trefis Team
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The stock price of CRISPR Therapeutics (NASDAQ:CRSP), a biotechnology gene editing company focused on developing gene-based medicines for human diseases, reached an all-time high of $210 in January of this year before a sell-off drove the stock price down over 50% to its current level of around $100. CRSP stock has fallen 17% over the last twenty-one trading days, after a rise in bond yields, along with rising inflationary concerns, led to a drop in growth stocks, including CRSP, NTLA and EDIT, among others. There has been no company-specific announcement that may warrant a decline in CRSP stock.

However, now that CRSP stock has seen a fall of 17% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a good chance of a rise in CRSP stock over the next monthOut of 132 instances in the last five years that CRSP stock saw a twenty-one day fall of 17% or more, 84 of them resulted in CRSP stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 84 out of 132, or about 64% chance of a rise in CRSP stock over the coming month. See our analysis on CRISPR Stock Chance of A Rise for more details. Gene-editing stocks at large continue to be promising, and a large fall, such as in the case of CRSP stock, can be used as a buying opportunity for long-term investors.

So, if this follows historical performance, it is likely that CRSP stock will rise to higher levels going forward. Also, CRISPR Stock Return summarizes CRSP stock performance and chances of its rise or decline, among other metrics that matter.

Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last five years data

  • After moving -1.7% or more over a five-day period, the stock rose in the next five days on 55% of the occasions.
  • After moving -14% or more over a ten-day period, the stock rose in the next ten days on 59% of the occasions
  • After moving -17% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 64% of the occasions.

CRISPR Therapeutics AG (CRSP) Stock Return (Recent) Comparison With Peers

  • Five-Day Return: BMRN highest at 2.7%; EDIT lowest at -1.7%
  • Ten-Day Return: BMRN highest at -0.9%; EDIT lowest at -37%
  • Twenty-One Day Return: BMRN highest at -0.1%; EDIT lowest at -45%

While CRSP stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Johnson & Johnson vs. Regeneron Pharmaceuticals.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.

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