Praxis Precision Medicines (NASDAQ:PRAX) Posts Earnings Results, Misses Estimates By $0.50 EPS

Praxis Precision Medicines (NASDAQ:PRAX) announced its quarterly earnings results on Thursday. The company reported ($3.50) EPS for the quarter, missing analysts’ consensus estimates of ($3.00) by ($0.50), FiscalAI reports.

Here are the key takeaways from Praxis Precision Medicines’ conference call:

• Two NDAs submitted: Praxis submitted NDAs for ulixacaltamide in essential tremor and relutrigine for SCN2A/SCN8A DEEs; ulixacaltamide has FDA Breakthrough designation and relutrigine has Rare Pediatric Disease designation with the NDA already filed.
• Strong cash position — pro forma cash of approximately $1.5 billion after the January offering, which management says is expected to fund operations into 2028.
• Multiple near-term catalysts: POWER1 top-line readout for vormatrigine expected in Q2, elsunersen (EMBRAVE) top-line and EMBRAVE3 enrollment readouts in H1 with potential NDA next year, and EMERALD enrollment completion in H2 with a possible sNDA by 2027.
• Rising spend to support pipeline and launches — 2025 operating expenses were $326M (Q4 $97M) and management expects materially higher 2026 spend for commercial build-out, which increases near-term cash burn.
• Regulatory timing choices: Praxis requested priority review for relutrigine but not for ulixacaltamide, citing strategic/payer considerations (including IRA timing), which could affect ulixacaltamide’s approval timing and launch dynamics.

Praxis Precision Medicines Stock Performance

Shares of PRAX stock traded down $5.22 during mid-day trading on Thursday, hitting $323.72. The company’s stock had a trading volume of 324,046 shares, compared to its average volume of 533,944. The stock has a market cap of $8.15 billion, a price-to-earnings ratio of -25.09 and a beta of 2.84. Praxis Precision Medicines has a 52-week low of $26.70 and a 52-week high of $335.75. The business has a 50-day moving average price of $297.98 and a 200 day moving average price of $175.20.

Institutional Investors Weigh In On Praxis Precision Medicines

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC raised its stake in Praxis Precision Medicines by 24.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,837 shares of the company’s stock valued at $77,000 after buying an additional 359 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Praxis Precision Medicines in the fourth quarter worth $163,000. Norges Bank purchased a new stake in Praxis Precision Medicines during the second quarter valued at $210,000. Commonwealth Equity Services LLC bought a new position in Praxis Precision Medicines in the fourth quarter valued at about $220,000. Finally, O Shaughnessy Asset Management LLC purchased a new position in Praxis Precision Medicines in the fourth quarter worth about $226,000. Hedge funds and other institutional investors own 67.84% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. HC Wainwright reaffirmed a “buy” rating and issued a $1,245.00 target price (up from $340.00) on shares of Praxis Precision Medicines in a research report on Friday, January 30th. Piper Sandler reaffirmed an “overweight” rating and set a $1,200.00 price objective (up from $450.00) on shares of Praxis Precision Medicines in a research report on Wednesday, January 28th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Praxis Precision Medicines in a report on Monday, December 29th. Wells Fargo & Company began coverage on Praxis Precision Medicines in a research note on Monday, February 2nd. They issued an “equal weight” rating and a $282.00 target price for the company. Finally, BTIG Research restated a “buy” rating and set a $843.00 price target (up from $507.00) on shares of Praxis Precision Medicines in a research report on Monday, December 29th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $536.06.

Praxis Precision Medicines Company Profile

Praxis Precision Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing precision therapies for disorders driven by neuronal excitability. The company applies translational neuroscience and genetic insights to design small molecule drugs that target specific ion channels and receptor subtypes implicated in neurological and psychiatric conditions. Its research aims to address unmet needs in rare epilepsies, essential tremor, treatment-resistant depression and other central nervous system (CNS) disorders.

The company’s pipeline includes several lead candidates at various stages of development.