Editas Medicine (EDIT) AI Stock Analysis

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Editas Medicine

(NASDAQ:EDIT)

Rating:51Neutral

Price Target:

$2.50

▼(-7.06% Downside)

Editas Medicine's overall stock score is primarily influenced by its financial challenges, including negative cash flow and lack of revenue growth. However, recent corporate events showcasing promising advancements in gene editing provide a positive outlook, partially offsetting financial concerns. Technical indicators suggest a neutral to slightly bearish short-term trend, while valuation metrics reflect the typical high-risk, high-reward nature of biotech investments.

Positive Factors

Gene Editing Advancements

The promising gene editing data supports Editas' potential leadership in the industry, enhancing its competitive position and long-term growth prospects.

Strong Cash Reserves

Strong cash reserves provide Editas with the financial flexibility to continue R&D investments, crucial for sustaining innovation and development of new therapies.

Low Debt Levels

Low debt levels reduce financial risk and interest burden, allowing Editas to focus resources on strategic initiatives and R&D efforts.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates operational challenges and high cash burn, risking long-term sustainability without external funding.

Revenue Decline

The decline to zero revenue highlights challenges in transitioning to a commercially viable model, impacting financial stability and growth.

Erosion of Shareholder Value

Erosion of shareholder value due to declining equity can undermine investor confidence, affecting the company's ability to raise capital.

Editas Medicine (EDIT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$241.89M

Dividend YieldN/A

Average Volume (3M)1.62M

Price to Earnings (P/E)―

Beta (1Y)2.49

Revenue Growth-41.97%

EPS Growth-20.86%

CountryUS

Employees246

SectorHealthcare

Sector Strength45

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.63

Shares Outstanding89,920,166

10 Day Avg. Volume1,394,056

30 Day Avg. Volume1,621,035

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.35

Enterprise Value/Revenue2.19

Enterprise Value/Gross Profit2.37

Enterprise Value/Ebitda-0.38

Forecast

1Y Price Target

$3.88

Price Target Upside44.24% Upside

Rating ConsensusHold

Number of Analyst Covering12

Editas Medicine Business Overview & Revenue Model

Company DescriptionEditas Medicine (EDIT) is a biotechnology company focused on developing transformative genomic medicines using its proprietary CRISPR gene-editing technology. The company operates primarily in the field of genetic medicine, targeting diseases caused by genetic mutations, including inherited retinal diseases and other serious conditions. Editas aims to leverage its innovative platform to create therapies that can correct the underlying genetic causes of diseases, with a pipeline that includes both in vivo and ex vivo applications of CRISPR technology.

How the Company Makes MoneyEditas 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 Key Performance Indicators (KPIs)

Any

Operating Expense Breakdown

Operating Expense Breakdown
Details core costs like R&D, marketing, and admin, offering insight into how efficiently the company runs and where it’s prioritizing investment, crucial for understanding Editas Medicine's focus on innovation and operational strategy.

Chart InsightsEditas Medicine's R&D expenses have shown volatility, with a significant drop in early 2025, possibly reflecting strategic cost management or project completion. General and Administrative expenses have gradually decreased since late 2023, indicating a focus on operational efficiency. These trends suggest a strategic shift towards optimizing resources, which could enhance financial stability and support future innovation efforts.

Data provided by:

Main Street Data

Editas Medicine Earnings Call Summary

Earnings Call Date:Aug 12, 2025

(Q2-2024)

% Change Since: |

Next Earnings Date:Nov 10, 2025

Earnings Call Sentiment Positive

The call highlighted significant progress in both clinical trials and in vivo pipeline development. Financial stability was assured despite a higher burn rate. However, challenges such as increased expenses and regulatory issues around fertility support present hurdles. Overall, the company's advancements in gene editing and robust clinical trial outcomes provide a positive outlook.

Q2-2024 Updates

Positive Updates

Reni-cel Clinical Trials Progress

Completed adolescent cohort enrollment for the RUBY trial, and adult cohort enrollment in the EdiTHAL trial. Clinical data from RUBY and EdiTHAL trials show promising results with all patients free from vaso-occlusive events and a high level of fetal hemoglobin.

In Vivo Pipeline Advancements

On track to establish in vivo preclinical proof of concept for an undisclosed indication by the end of the year. Strengthening in vivo discovery capabilities and pursuing a differentiated strategy for gene editing.

Financial Position

Cash, cash equivalents, and marketable securities as of June 30 were $318 million, expected to fund operations into 2026.

Manufacturing Improvements

Robust manufacturing process for reni-cel with a low failure rate, potentially reducing patient burden and cost.

Negative Updates

Increased Burn Rate

Higher burn rate this quarter due to increased external R&D expenses, primarily related to clinical and manufacturing costs.

Regulatory and Market Challenges

Concerns regarding HHS decision on fertility preservation coverage for sickle cell therapies, which may affect market dynamics.

Company Guidance

During the Editas Medicine Q2 2024 earnings call, CEO Gilmore O'Neill outlined the company's strategic progress, emphasizing three main pillars: advancing reni-cel towards BLA and commercialization, building a differentiated in vivo editing pipeline, and enhancing business development with a focus on intellectual property. The RUBY trial data for sickle cell disease showed promising results, with 18 patients having follow-up periods ranging from 2.4 to 22.8 months and demonstrating robust anemia correction. The EdiTHAL trial for beta-thalassemia included data from 7 patients with 4.1 to 12.8 months follow-up. Financially, Editas reported cash, cash equivalents, and marketable securities totaling $318 million as of June 30, 2024, with a burn rate increase due to R&D expenses. They expect to fund operations into 2026. The company is also on track to establish in vivo preclinical proof of concept by year-end, with a focus on leveraging indel technology for gene upregulation, targeting rare and orphan diseases initially.

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

Very Negative

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

Negative

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

Negative

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

Positive

Last Price2.69

Price Trends

50DMA

2.74

Negative

100DMA

2.27

Positive

200DMA

1.89

Positive

Market Momentum

MACD

<0.01

Negative

RSI

51.07

Neutral

STOCH

58.52

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Positive. The current price of 2.69 is above the 20-day moving average (MA) of 2.68, below the 50-day MA of 2.74, and above the 200-day MA of 1.89, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 58.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDIT.

Editas Medicine Risk Analysis

Editas Medicine disclosed 71 risk factors in its most recent earnings report. Editas Medicine reported the most risks in the "Tech & Innovation" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Editas Medicine Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLLS	64 Neutral	$227.17M	―	-48.36%	―	334.10%	―
Sector *	51 Neutral	$7.93B	-0.35	-43.30%	2.25%	22.54%	-2.22%
EDIT	51 Neutral	$241.89M	―	-188.58%	―	-41.97%	-20.86%
NKTX	39 Underperform	$139.92M	―	-26.94%	―	―	26.33%
RAPT	39 Underperform	$268.24M	―	-77.83%	―	―	43.16%
CTNM	39 Underperform	$346.46M	―	-29.24%	―	―	-125.92%
NMRA	33 Underperform	$262.35M	―	-89.37%	―	―	9.84%

* Healthcare Sector Average

Performance Comparison

EDIT

Editas Medicine

2.69

-1.14

-29.77%

CLLS

Cellectis SA

2.89

0.59

25.65%

RAPT

RAPT Therapeutics

16.22

1.18

7.85%

NKTX

Nkarta

1.97

-3.68

-65.13%

NMRA

Neumora Therapeutics, Inc.

1.62

-10.32

-86.43%

CTNM

Contineum Therapeutics, Inc. Class A

12.36

-6.77

-35.39%

Editas Medicine Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy

Editas Medicine Advances EDIT-401 for LDL Reduction

Positive

Sep 2, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy

Editas Medicine Unveils Promising Gene Editing Data

Positive

Jun 12, 2025

On June 12, 2025, Editas Medicine announced new in vivo data at the European Hematology Association 2025 Congress, demonstrating significant advancements in gene editing for sickle cell disease and beta thalassemia. The study showed that a single dose of their proprietary targeted lipid nanoparticle (tLNP) in non-human primates achieved a 58% mean on-target editing level in the HBG1/2 promoter region of hematopoietic stem cells, surpassing the therapeutic threshold. This development supports the potential of Editas’ approach to provide a novel treatment for these conditions, with favorable biodistribution and minimal liver targeting, enhancing the company’s position in the gene editing industry.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025