The stock price of CRISPR Therapeutics (NASDAQ:CRSP), a biotechnology gene editing company focused on developing gene-based medicines for human diseases, reached an all-time high of $210 in January of this year before a gradual decline drove the stock price down over 60% to its current level of around $80. CRSP stock has fallen 16% over the last month (twenty-one trading days), after a rise in bond yields, along with rising concerns over the spread of a newer Covid-19 variant – Omicron – led to a drop in growth stocks, including CRSP, NTLA, and EDIT, among others.
Over the last month or so, the company announced that Health Canada approved its application to start the clinical trials for VCTX210, an allogeneic, gene-edited, immune-evasive, stem cell-derived therapy for the treatment of type 1 diabetes (T1D). In another release, the company stated that the U.S. FDA granted Regenerative Medicine Advanced Therapy (RMAT) designation to its CAR-T cell therapy – CTX110. Overall, there has been no company-specific development that may warrant a decline in CRSP stock. In fact, over the last few days there has been an optimism in the markets after reports suggesting that Omicron may not have a profound impact on economic growth as feared earlier. This resulted in a rebound in CRSP stock as well, with over 5% gains over the last five days.
However, now that CRSP stock has seen a fall of 16% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of a rise in CRSP stock over the next month. Out of 162 instances in the last five years that CRSP stock saw a twenty-one day fall of 16% or more, 93 of them resulted in CRSP stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 93 out of 162, or about 57% chance of a rise in CRSP stock over the coming month. See our analysis on CRISPR Stock Chance of A Rise for more details. Gene-editing stocks at large continue to be promising, and a large fall, such as in the case of CRSP stock, can be used as a buying opportunity for long-term investors.
Wondering how CRISPR’s peers stack up? Check out CRISPR Stock Comparison With Peers to see how CRSP stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last five years data
- After moving 5.5% or more over a five-day period, the stock rose in the next five days on 51% of the occasions.
- After moving -0.8% or more over a ten-day period, the stock rose in the next ten days on 49% of the occasions
- After moving -15.6% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 57% of the occasions.
This pattern suggests that CRSP stock may move in either direction over the next five to ten days, but it is likely to see higher levels over the next one month period.
CRISPR Therapeutics AG (CRSP) Stock Return (Recent) Comparison With Peers
- Five-Day Return: NTLA highest at 8.9%; BLUE lowest at -0.5%
- Ten-Day Return: FATE highest at 7.2%; BLUE lowest at -6.8%
- Twenty-One Day Return: BLUE highest at -6.5%; EDIT lowest at -21.4%
While CRSP stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Merck vs. Regeneron Pharmaceuticals.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
| Returns | Dec 2021 MTD [1] |
2021 YTD [1] |
2017-21 Total [2] |
| CRSP Return | -16% | -48% | 292% |
| S&P 500 Return | 0% | 25% | 110% |
| Trefis MS Portfolio Return | 2% | 47% | 295% |
[1] Month-to-date and year-to-date as of 12/9/2021
[2] Cumulative total returns since 2017
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
