A Look at Beam Therapeutics Inc. (BEAM) Shares in the Recent Past Indicates Growth

Beam Therapeutics Inc. (NASDAQ: BEAM) stock fell -0.34% on Monday to $44.39 against a previous-day closing price of $44.54. With 0.66 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.85 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $45.12 whereas the lowest price it dropped to was $42.64. The 52-week range on BEAM shows that it touched its highest point at $80.00 and its lowest point at $27.77 during that stretch. It currently has a 1-year price target of $78.00.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BEAM was up-trending over the past week, with a rise of 2.66%, but this was up by 6.73% over a month. Three-month performance surged to 1.23% while six-month performance fell -29.41%. The stock lost -29.36% in the past year, while it has gained 13.50% so far this year. A look at the trailing 12-month EPS for BEAM yields -4.54 with Next year EPS estimates of -5.43. For the next quarter, that number is -1.33. This implies an EPS growth rate of -37.70% for this year and -12.20% for next year.

Float and Shares Shorts:

At present, 70.34 million BEAM shares are outstanding with a float of 69.16 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.08 million, which was 18.59% higher than short shares on Sep 14, 2022. In addition to Mr. John M. Evans M.B.A. as the firm’s CEO & Director, Dr. Giuseppe Ciaramella Ph.D. serves as its Pres & Chief Scientific Officer.

Institutional Ownership:

Through their ownership of 87.50% of BEAM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.10% of BEAM, in contrast to 27.81% held by mutual funds. Shares owned by individuals account for 18.91%. As the largest shareholder in BEAM with 12.05% of the stake, ARK Investment Management LLC holds 8,490,936 shares worth 8,490,936. A second-largest stockholder of BEAM, The Vanguard Group, Inc., holds 6,012,899 shares, controlling over 8.53% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in BEAM, holding 4,509,330 shares or 6.40% stake. With a 8.54% stake in BEAM, the ARK Innovation ETF is the largest stakeholder. A total of 6,016,598 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.87% of BEAM stock, is the second-largest Mutual Fund holder. It holds 2,025,500 shares valued at 79.22 million. ARK Genomic Revolution ETF holds 2.78% of the stake in BEAM, owning 1,957,788 shares worth 76.57 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BEAM since 14 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BEAM analysts setting a high price target of $125.00 and a low target of $49.00, the average target price over the next 12 months is $77.69. Based on these targets, BEAM could surge 181.59% to reach the target high and rise by 10.39% to reach the target low. Reaching the average price target will result in a growth of 75.02% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BEAM will report FY 2022 earnings on 02/26/2024. Analysts have provided yearly estimates in a range of -$3.75 being high and -$5.16 being low. For BEAM, this leads to a yearly average estimate of -$4.73. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Beam Therapeutics Inc. surprised analysts by -$0.28 when it reported -$1.56 EPS against a consensus estimate of -$1.28. The surprise factor in the prior quarter was $0.10. Based on analyst estimates, the high estimate for the next quarter is -$0.79 and the low estimate is -$1.95. The average estimate for the next quarter is thus -$1.37.

Summary of Insider Activity:

Insiders traded BEAM stock several times over the past three months with 6 Buys and 15 Sells. In these transactions, 85,092 shares were bought while 154,744 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 63 over the past year. The total number of shares bought during that period was 1,882,657 while 3,339,715 shares were sold.

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