Editas Medicine (EDIT) AI Stock Analysis

• Market Cap: $321.01M
• Dividend Yield: N/A
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.47
• Revenue Growth: -41.97%
• EPS Growth: -20.86%
• Country: US
• Employees: 246
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.63
• Shares Outstanding: 89,920,166
• 10 Day Avg. Volume: 2,983,923
• 30 Day Avg. Volume: 3,061,001
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: -0.38
• 1Y Price Target: $3.88
• Price Target Upside: 6.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 55 Neutral
• Price Target: $4.00 ▲(9.59% Upside)

Editas Medicine's overall stock score is primarily influenced by its financial performance challenges, including lack of revenue growth and persistent losses. Despite strong cash reserves, the company faces high risks due to negative cash flow and reliance on external funding. Technical analysis provides a more positive outlook with bullish momentum, but valuation remains a concern due to ongoing losses and lack of dividends.

Positive Factors

Innovative Product Development

The nomination of EDIT-401 as the lead candidate highlights Editas's commitment to advancing its CRISPR technology. This strategic move positions the company to potentially lead in the gene-editing space, offering a novel therapeutic approach that could significantly impact patient outcomes.

Strong Cash Reserves

Editas Medicine's substantial cash reserves provide a financial cushion, enabling continued investment in R&D and strategic initiatives. This financial strength supports long-term sustainability and the ability to weather periods of negative cash flow typical in biotech R&D phases.

Partnerships and Collaborations

Collaborations with industry leaders enhance Editas's research capabilities and provide funding opportunities. These partnerships are crucial for advancing clinical trials and potentially accelerating the commercialization of its therapies, strengthening its market position.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates operational struggles and high cash burn. This reliance on external funding poses a risk to Editas's long-term financial stability, potentially limiting its ability to independently sustain R&D activities and commercial operations.

Revenue Decline

The sharp decline in revenue underscores challenges in achieving a commercially viable model. This lack of revenue growth highlights the difficulty in transitioning from R&D to a revenue-generating stage, impacting the company's financial health and investor confidence.

Leadership Changes

Leadership changes, such as the departure of key executives, can disrupt strategic continuity and operational efficiency. This may affect Editas's ability to execute its long-term vision and maintain momentum in its R&D and commercialization efforts.

Editas Medicine Business Overview & Revenue Model

Company Description

Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 clinical trial for Leber Congenital Amaurosis 10 that leads to inherited childhood blindness. It also develops EDIT-102 for the treatment of Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; autosomal dominant retinitis pigmentosa, a progressive form of retinal degeneration; and EDIT-301 to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing gene-edited Natural Killer cell medicines to treat solid tumor cancers; alpha-beta T cells for multiple cancers; and gamma delta T cell therapies to treat cancer, as well as has an early discovery program to develop a therapy to treat a neurological disease. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and research collaboration with Asklepios BioPharmaceutical, Inc. to develop a therapy to treat a neurological disease, as well as research collaboration with AskBio. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.

How the Company Makes Money

Editas Medicine generates revenue through a combination of product development agreements, collaborations, and potential future sales of therapies that successfully pass through clinical trials. The company has established partnerships with various pharmaceutical companies and research institutions, which often provide funding in exchange for rights to co-develop or commercialize specific therapies. Additionally, Editas may receive milestone payments and royalties based on the commercial success of its products. The company's financial performance is also influenced by grants and investments aimed at supporting its research and development initiatives.

Editas Medicine Financial Statement Overview

Summary

Editas Medicine faces significant financial challenges typical of biotech firms in the R&D phase. The lack of revenue growth and persistent losses indicate difficulties in transitioning to a commercially viable model. The balance sheet is bolstered by strong cash reserves, yet the continuous negative cash flow suggests an ongoing reliance on external funding. Investors should be cautious of the high risks associated with the company's current financial position.

Income Statement

Editas Medicine has shown a volatile revenue trajectory with a significant drop to zero revenue in 2024 from previous levels. The company has consistently reported negative net income, leading to negative profit margins. This indicates challenges in achieving profitability, common in the biotech industry, which often requires substantial R&D investments without immediate revenue.

Balance Sheet

The company's balance sheet exhibits moderate financial health with a significant cash reserve relative to its total assets. The debt-to-equity ratio is low, suggesting conservative use of debt. However, the continuous decline in stockholders' equity indicates erosion of shareholder value, which is a concern.

Cash Flow

Editas Medicine has consistently faced negative operating and free cash flows, reflecting operational struggles and high cash burn. Although there are instances of positive financing cash flows, this is likely due to capital raises rather than operational efficiency, posing a risk to long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.90M	32.31M	78.12M	19.71M	25.54M	90.73M
Gross Profit	35.92M	26.50M	72.06M	13.38M	20.49M	-67.26M
EBITDA	-225.89M	-233.11M	-163.12M	-219.61M	-188.09M	-130.88M
Net Income	-236.86M	-237.09M	-153.22M	-220.43M	-192.50M	-115.98M
Balance Sheet
Total Assets	210.58M	341.59M	499.15M	514.32M	677.48M	572.60M
Cash, Cash Equivalents and Short-Term Investments	178.50M	269.91M	323.11M	344.27M	499.85M	402.11M
Total Debt	77.81M	35.03M	36.54M	43.95M	26.38M	26.14M
Total Liabilities	191.39M	207.31M	150.06M	153.64M	123.84M	179.02M
Stockholders Equity	19.19M	134.27M	349.10M	360.68M	553.64M	393.59M
Cash Flow
Free Cash Flow	-204.94M	-219.11M	-136.90M	-181.47M	-171.78M	-187.00M
Operating Cash Flow	-201.36M	-210.28M	-132.18M	-177.35M	-163.80M	-179.84M
Investing Cash Flow	213.97M	162.15M	-3.73M	114.07M	-54.47M	-140.52M
Financing Cash Flow	61.49M	56.03M	118.04M	1.28M	282.11M	224.12M

Editas Medicine Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Neutral. The current price of 3.65 is below the 20-day moving average (MA) of 3.77, above the 50-day MA of 3.18, and above the 200-day MA of 2.15, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 37.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EDIT.

Editas Medicine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLLS	61 Neutral	$259.88M	―	-48.36%	―	334.02%	―
EDIT	55 Neutral	$321.01M	―	-188.58%	―	-41.97%	-20.86%
CRBU	54 Neutral	$262.61M	―	-68.93%	―	-72.45%	-28.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FHTX	41 Neutral	$228.38M	―	―	―	-31.30%	36.26%
VOR	33 Underperform	$181.29M	―	―	―	―	-686.12%
ELTX	30 Underperform	$152.76M	―	-9999.00%	―	―	-4.60%

Editas Medicine Corporate Events

Editas Medicine Unveils Promising Preclinical Data on EDIT-401

On October 9, 2025, Editas Medicine presented in vivo preclinical proof-of-concept data for their experimental therapy, EDIT-401, at the European Society of Gene and Cell Therapy Congress. The therapy aims to significantly reduce LDL-cholesterol by upregulating the LDL receptor, showing promising results in non-human primates and mice with reductions exceeding 90% within 48 hours of a single dose, potentially impacting the company’s position in the gene therapy market.

The most recent analyst rating on (EDIT) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Editas Medicine Advances EDIT-401 for LDL Reduction

On September 2, 2025, Editas Medicine announced the nomination of EDIT-401 as its lead in vivo development candidate. EDIT-401 is designed to reduce LDL cholesterol levels by editing the LDLR gene, showing promising preclinical results with a significant reduction in LDL-C levels and increased LDLR protein expression. The company plans to focus on advancing EDIT-401 to human proof-of-concept and aims to submit an IND or CTA by mid-2026. Additionally, Editas confirmed its financial stability, projecting its cash runway to extend into the second quarter of 2027.

The most recent analyst rating on (EDIT) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Editas Medicine Inc. Faces Significant Business Risks: Key Factors for Investors to Watch

Editas Medicine Inc. faces significant business risks as outlined in their Quarterly Report on Form 10-Q. The report highlights potential challenges, including those mentioned in the ‘Summary of Risk Factors’ and Part I, ‘Item 1’. These risks could impact the company’s operational and financial performance, necessitating careful consideration by stakeholders. Investors and analysts should closely monitor these factors to assess their potential impact on the company’s future prospects.

Editas Medicine Reports Q2 2025 Progress and Financials

Editas Medicine, Inc. is a pioneering gene editing company focused on developing transformative medicines for serious diseases using CRISPR technology. In its second quarter 2025 earnings report, Editas Medicine highlighted significant progress in its strategic initiatives, including the selection of a lead development candidate and advancements in its collaboration with Bristol Myers Squibb.