Unusual Options Trading Activity in CRISPR Therapeutics

CRISPR Therapeutics AG (NASDAQ:CRSP) attracted attention on Tuesday due to notable options trading activity. Investors actively purchased 13,128 call options, representing a striking increase of approximately 59% compared to the typical volume of 8,282 call options.

Insider Activity

In related news, CEO Samarth Kulkarni sold 15,000 shares of the company on December 2nd. The shares were sold at an average price of $55.10, amounting to a total value of $826,500. Following this sale, the CEO holds 181,540 shares valued at around $10,002,854, indicating a 7.63% reduction in his ownership. This transaction has been reported in a legal document filed with the Securities and Exchange Commission. It is noted that company insiders control about 4.10% of the total stock.

Institutional Investors' Involvement

Several hedge funds and institutional investors have made significant changes to their holdings in CRISPR Therapeutics. For instance, ARK Investment Management LLC increased its stake by 19.7% during the fourth quarter, now owning 8,973,064 shares valued at about $353,180,000 after acquiring an additional 1,474,439 shares. Similarly, Capital International Investors lifted their position by 10.3% with 8,743,523 shares worth $344,145,000 after adding 816,789 shares. T. Rowe Price Investment Management Inc. also raised their stake by 39.2% to 3,811,708 shares, valued at $150,029,000. Other notable increases in holdings were recorded by State Street Corp and FMR LLC, with the latter increasing by 1.0% during the third quarter. Collectively, hedge funds and institutional investors now own around 69.20% of the company's stock.

Stock Performance

On Tuesday, shares of CRISPR Therapeutics experienced an increase of 5.2%, adding $2.57 to reach a price of $52.29. A total of 6,020,362 shares changed hands, far exceeding the average trading volume of 2,335,658 shares. The stock has shown a 1-year range, with a low of $36.52 and a high of $91.10. Its fifty-day moving average stands at $41.89, while the 200-day moving average is at $45.98. The company's market capitalization is approximately $4.46 billion, with a price-to-earnings ratio of -18.48 and a beta of 1.67.

Quarterly Earnings Report

CRISPR Therapeutics last reported its quarterly earnings on February 11th, where it posted an EPS of -$0.44, surpassing the consensus estimate of -$1.15 by $0.71. The company has been facing challenges, evidenced by a negative return on equity of 12.15% and a negative net margin of 118.13%. Analysts forecast an average EPS of -5.08 for the current fiscal year.

Analyst Ratings Overview

The stock has been subject to various analyst ratings, with Bank of America lowering their target price from $98.00 to $85.00 while maintaining a "buy" rating. Citigroup also adjusted its target from $89.00 to $82.00 with a similar designation. Conversely, Morgan Stanley downgraded their rating, lowering the target from $30.00 to $32.00 and labeling it as underweight. Overall, there are mixed reviews, with two analysts recommending a sell rating, nine suggesting hold, and twelve providing a buy rating. Current data indicates an average rating of "Hold" with a consensus target price of $74.40.

About CRISPR Therapeutics

CRISPR Therapeutics is a pioneering gene-editing firm focused on creating transformative gene-based therapies to treat severe diseases through its proprietary CRISPR/Cas9 platform. This groundbreaking technology facilitates precise modifications to genomic DNA, and the company has developed a diverse array of therapeutic programs targeting various conditions, including hemoglobinopathies, cancer, regenerative medicine, and rare illnesses.

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