Prime Medicine, Inc. (PRME) AI Stock Analysis

Prime Medicine, Inc. is a biotechnology company founded in 2019 and headquartered in Cambridge, Massachusetts. The company focuses on the development and application of genetic therapies to treat various diseases through advanced gene editing technologies. At the core of its approach are Prime Editors, which combine a Cas protein with a reverse transcriptase enzyme. This system works alongside pegRNA to direct Prime Editors to specific genomic sites, enabling targeted DNA modifications. Through scientific research, molecular biology collaborations, and strategic partnerships, Prime Medicine aims to correct genetic mutations and advance personalized medicine.

Prime Medicine generated $5.2M in revenue in both FY2020 and FY2022, followed by a decline to $3.0M in FY2024. In FY2025, revenue increased 55.3% to $4.6M, though research and development spending remained high at $160.6M. Operating margins were deeply negative across reported periods, reaching -4498.1% in FY2025 as net losses expanded to -$201.1M, or -$1.37 per share. Over the 3-year period from FY2020 to FY2025, revenue had a CAGR of -3.8%. For the trailing twelve months ended June 30, 2026, revenue stood at $4.1M with quarterly revenue growing 3.5% year-over-year, while diluted EPS was -$1.07.

As of June 30, 2026, Prime Medicine held $95.1M in cash and short-term investments and $112.5M in total debt, resulting in net debt of $17.4M. The company had total assets of $249.0M, shareholders' equity of $39.8M, a current ratio of 3.05, and a debt-to-equity ratio of 2.83. In FY2025, operating cash flow was -$162.6M and free cash flow was -$167.1M, with capital expenditures of $4.5M. Share count expanded 85.1% over a 5-year period.

Prime Medicine trades at an enterprise value of $622.9M and a market capitalization of $629.4M. Its price-to-sales multiple is 154.5x, well above the 4.1x median of its US-listed Healthcare peers. Its EV-to-revenue ratio is 152.9x, while its price-to-book ratio sits at 0.3x. PRME stock closed at $3.47 on October 16, 2026, down 40.2% over the trailing 12 months, trailing the S&P 500 (SPY) return of 16.8% over the same period. The stock has a beta of 2.38.

Wall Street coverage includes 10 Strong Buy, 1 Buy, and 3 Hold ratings. The mean price target is $7.11, representing a 105.0% premium over the last close of $3.47. For the fiscal year ending December 31, 2026, analysts estimate revenue of $8.8M and an EPS of -$0.94. For the next fiscal year, 12 analysts project revenue of $10.6M, reflecting 19.5% growth, and an EPS of -$0.89. Prime Medicine has beaten EPS estimates in 1 of the last 4 quarters, with its next earnings release scheduled for November 6, 2026.

This page is an AI-written research summary of Prime Medicine, Inc. (PRME). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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