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Editas Medicine Inc (EDIT)
NASDAQ:EDIT
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Editas Medicine (EDIT) AI Stock Analysis

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EDIT

Editas Medicine

(NASDAQ:EDIT)

Rating:51Neutral
Price Target:
$2.00
▼(-9.50% Downside)
Editas Medicine's overall stock score reflects a challenging financial position typical of early-stage biotech companies, with significant reliance on external funding. However, recent advancements in gene editing provide a positive outlook for future growth. Technical indicators suggest caution, but potential for a rebound exists. Valuation remains a concern due to ongoing losses.
Positive Factors
Innovation and Preclinical Success
Editas has shown highly promising preclinical data from their Sickle Cell Disease and liver programs, indicating potential for future clinical success.
Technology and Efficacy
Editas's therapy has achieved an editing rate far exceeding the therapeutic threshold, viewed as a risk-mitigating feature before clinical development.
Negative Factors
Financial Performance
Editas reported a net loss of $0.92 per share, which was larger than the prior estimate of a net loss of $0.55 per share.
Legal and Patent Issues
There is increasing uncertainty in the Cas9 patent interference case as the appellate court has instructed PTAB to reconsider its decision.

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

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
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:Jul 30, 2025
(Q2-2024)
|
% Change Since: -14.67%|
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. While the balance sheet is supported by strong cash reserves, the continuous negative cash flow suggests an ongoing reliance on external funding.
Income Statement
20
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
40
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
30
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.31M78.12M19.71M25.54M90.73M
Gross Profit26.50M-99.53M13.38M20.49M-67.26M
EBITDA-231.28M-163.12M-219.61M-188.09M-130.88M
Net Income-237.09M-153.22M-204.35M-185.11M-109.41M
Balance Sheet
Total Assets341.59M499.15M514.32M677.48M572.60M
Cash, Cash Equivalents and Short-Term Investments269.91M323.11M437.37M619.91M511.77M
Total Debt35.03M36.54M43.95M26.38M26.14M
Total Liabilities207.31M150.06M153.64M123.84M179.02M
Stockholders Equity134.27M349.10M360.68M553.64M393.59M
Cash Flow
Free Cash Flow-219.11M-136.90M-181.47M-171.78M-187.00M
Operating Cash Flow-210.28M-132.18M-177.35M-163.80M-179.84M
Investing Cash Flow162.15M-3.73M114.07M-54.47M-140.52M
Financing Cash Flow56.03M118.04M1.28M282.11M224.12M

Editas Medicine Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.21
Price Trends
50DMA
2.45
Negative
100DMA
1.92
Positive
200DMA
1.92
Positive
Market Momentum
MACD
-0.03
Positive
RSI
37.83
Neutral
STOCH
11.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Negative. The current price of 2.21 is below the 20-day moving average (MA) of 2.79, below the 50-day MA of 2.45, and above the 200-day MA of 1.92, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.83 is Neutral, neither overbought nor oversold. The STOCH value of 11.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDIT.

Editas Medicine Risk Analysis

Editas Medicine disclosed 70 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$199.02M-48.26%333.77%
60
Neutral
HK$18.08B4.77-4.00%3.35%9.59%-23.62%
51
Neutral
$185.01M-140.82%-48.37%-44.70%
39
Underperform
$140.50M-26.10%35.73%
39
Underperform
$162.24M-77.83%43.16%
39
Underperform
$167.39M-29.24%-125.92%
33
Underperform
$236.44M-89.37%9.84%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EDIT
Editas Medicine
2.21
-1.71
-43.62%
CLLS
Cellectis SA
2.60
0.56
27.45%
RAPT
RAPT Therapeutics
9.81
-9.79
-49.95%
NKTX
Nkarta
1.98
-3.09
-60.95%
NMRA
Neumora Therapeutics, Inc.
1.46
-9.70
-86.92%
CTNM
Contineum Therapeutics, Inc. Class A
6.47
-10.85
-62.64%

Editas Medicine Corporate Events

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.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Editas Medicine Stockholders Approve Key Amendments
Neutral
Jun 2, 2025

At the 2025 Annual Meeting of Stockholders held on May 29, Editas Medicine, Inc.’s stockholders approved significant amendments to the company’s 2015 Stock Incentive Plan, extending its term and eliminating the ‘evergreen’ provision, among other changes. Additionally, stockholders approved an increase in the number of authorized shares of the company’s capital stock, which could impact the company’s ability to raise capital and expand its operations.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Editas Medicine Unveils Promising Gene Editing Data
Positive
May 14, 2025

On May 14, 2025, Editas Medicine announced new in vivo data showcasing the potential of their gene upregulation strategy in hematopoietic stem cells (HSCs) at the American Society of Gene and Cell Therapy Annual Meeting. The data demonstrated that a single dose of their proprietary targeted lipid nanoparticle (tLNP) achieved therapeutically relevant levels of HBG1/2 promoter editing in both humanized mice and non-human primates, exceeding the predicted therapeutic threshold. This approach, which targets HBG1/2 promoters to upregulate fetal hemoglobin, is in pre-clinical development for treating sickle cell disease and beta thalassemia, potentially positioning Editas Medicine as a leader in in vivo gene editing therapies.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Editas Medicine Unveils In Vivo Gene Editing Data
Positive
May 13, 2025

On May 13, 2025, Editas Medicine announced in vivo proof of concept data for a liver target at the American Society of Gene and Cell Therapy Annual Meeting. The study demonstrated significant gene editing and protein upregulation in mice and monkeys, indicating potential for a first-in-class treatment for liver diseases. This advancement positions Editas as a leader in gene editing therapies, with plans to reveal more details about the target and development candidate later in the year.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

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: Aug 09, 2025