Can Editas Medicine Stock Bounce Back After A 13% Drop In 5 Days ?

EDIT: Editas Medicine logo
EDIT
Editas Medicine

Editas Medicine (NASDAQ: EDIT), a biotechnology company focused on developing treatments using gene editing technology, has plunged by 13% over the last 5 trading days, after the company stated its plans to issue 3.5 million shares at $66 per share. The selling pressure can be attributed to the fact that the value of existing shares will be diluted. In comparison, the broader S&P 500 grew just 1.3% over the last 5 trading days. Now, is EDIT stock poised to grow further? We believe that the stock remains undervalued, given the recent FDA nod for phase I-II study of EDIT-301 in treating sickle cell disease. The company is already testing EDIT-101, a treatment for treating hereditary blindness. We believe that there is a 65% chance of a rise in EDIT stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last 5 years. See our analysis on Editas Stock Chances of Rise for more details.

5D: EDIT -13%, vs. S&P500 1.3%; Underperformed market

(6% likelihood event)

  • Editas Medicine stock declined 13% over a 5-day trading period ending 1/21/2021, compared to broader market (S&P500) rise of 1.3%
  • A change of -13% or more over 5 trading days is a 6% likelihood event, which has occurred 73 times out of 1256 in the last 5 years
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10D: EDIT -21%, vs. S&P500 3%; Underperformed market

(42% likelihood event)

  • Editas Medicine stock declined 21% over the last 10 trading days (2 weeks), compared to broader market (S&P500) rise of 3.0%
  • A change of -21% or more over 10 trading days is a 42% likelihood event, which has occurred 529 times out of 1240 in the last 5 years
While EDIT stock may be undervalued, 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 Pfizer vs Merck.

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