What’s Next For CRISPR Stock After A 14% Fall?

CRISPR Therapeutics stock (NASDAQ: CRSP), a biotechnology gene editing company focused on developing gene-based medicines for human diseases, has plunged by 14% over the last 10 trading days, and it is down 10% over the last 5 trading days. Earlier this month, CRSP stock made its lifetime high of $210, and it saw some profit booking at those levels. The massive investor interest in CRSP stock stems from its pipeline. The company is working to mass-produce cell therapies that will work in any person. Currently, cell therapies are manufactured from cells derived from human donors or from a patient’s own cells, making the process lengthy and cumbersome to develop the medication. If CRISPR is successful in its approach, it would mean off-the-shelf cell-based medicines developed using cells from diverse group of donors. The company’s in-house CTX110 therapy for non-Hodgkin’s lymphoma has already seen positive results from phase 1 trials.

While the CRSP stock saw a 14% decline over the last 10 days, it has seen a whopping 3x move over the last year. Now, is CRSP stock poised to decline further? We don’t think so. We believe that the gene editing companies, including CRISPR, will likely see gains in the near term, driven by increased investor expectations from the pipeline. There is a 60% chance of a rise in CRSP stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last 5 years. See our analysis on CRISPR Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the CRSP Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how CRSP stock could move.

5D: CRSP -9.6%, vs. S&P500 -1.5%; Underperformed market

(9% likelihood event)

  • CRISPR Therapeutics AG stock declined 9.6% over a 5-day trading period ending 1/29/2021, compared to broader market (S&P500) decline of 1.5%
  • A change of -9.6% or more over 5 trading days is a 9% likelihood event, which has occurred 117 times out of 1256 in the last 5 years

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10D: CRSP -14%, vs. S&P500 -0.4%; Underperformed market

(37% likelihood event)

  • CRISPR Therapeutics AG stock declined 14% over the last 10 trading days (2 weeks), compared to broader market (S&P500) decline of 0.4%
  • A change of -14% or more over 10 trading days is a 37% likelihood event, which has occurred 468 times out of 1240 in the last 5 years

Gene-editing technology is used to insert, edit, or delete a gene from an organism’s genome, and shows promise in treating medical conditions ranging from cancer to rare genetic conditions. Our indicative theme on Gene Editing Stocks has returned over 170% since the end of 2018, compared to the broader S&P 500 which is up by about 54% over the same period.

While gene-editing stocks look attractive, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck.

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