Editas Medicine, Inc.
$3.07
+8.9%Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 clinical trial for Leber Congenital Amaurosis 10 that leads to inherited childhood blindness. It also develops EDIT-102 for the treatment of Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; autosomal dominant retinitis pigmentosa, a progressive form of retinal degeneration; and EDIT-301 to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing gene-edited Natural Killer cell medicines to treat solid tumor cancers; alpha-beta T cells for multiple cancers; and gamma delta T cell therapies to treat cancer, as well as has an early discovery program to develop a therapy to treat a neurological disease. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and research collaboration with Asklepios BioPharmaceutical, Inc. to develop a therapy to treat a neurological disease, as well as research collaboration with AskBio. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -1.7).
Valuation inputs: P/E -1.7, earnings yield N/A, momentum +8.9%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -5.9%, ROIC -65.6%).
Profitability stack: net margin -4.0%, ROE -5.9%, ROIC -65.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +85.4%, momentum +8.9%, net margin -4.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Editas Medicine, Inc. Market vs Earnings Trajectory
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Editas Medicine, Inc. Fair Value Envelope
Editas Medicine, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Editas Medicine, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Editas Medicine, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Editas Medicine, Inc. Street Expectations Map
Wall Street analysts project that EDIT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 5.00, with estimates ranging from a low of 4.00 to a high of 6.00.
The consensus 1-year price target stands at 5.00, with estimates ranging from a low of 4.00 to a high of 6.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Editas Medicine, Inc. Insider Positioning
During the last 12 months, insiders have purchased $358K and sold $60K worth of EDIT shares, resulting in $298K of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
6.6K
13.36K
-13K
-$13K
6-9 Months
0
0.00
6.8K
14.59K
-15K
-$15K
9-12 Months
187.5K
358.12K
12.6K
32.06K
+326K
+$326K
Top Buyers
Scadden David
Director
$72K
Levy Elliott M.
Director
$72K
Connaughton Bernadette
Director
$72K
Hirsch Andrew
Director
$72K
Hopfield Jessica
Director
$72K
Top Sellers
O'Neill Gilmore Neil
Director, Officer: Ceo
$37K
Burkly Linda
Officer: Evp, Chief Scientific Officer
$18K
Parison Amy
Officer: Svp, Chief Financial Officer
$5K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $298K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
5 insider buyers vs. 3 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
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Learning Layer
Related Guides
Build conviction on EDIT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.