Recent News
On August 4, 2025, Praxis announced positive topline results from the RADIANT study of vormatrigine in focal onset seizures and provided a corporate update on pipeline progress. On July 31, 2025, the stock received a technical rating upgrade from Investor’s Business Daily, reflecting improved relative strength.
Technical Analysis
ADX at 18.86 — no trend — indicates limited current trend strength despite directional shifts; directional indicators show DI-positive with dip & reversal and DI-negative with peak & reversal, signaling a bullish directional shift while trend strength remains weak.
MACD at -1.55 with MACD signal -1.65 and MACD trend shows a dip & reversal; MACD crossing above its signal line constitutes a bullish momentum signal despite negative absolute MACD, supporting the recent uptick in price relative to short-term averages.
MRO at -33.75 with MRO showing a recent dip & reversal, indicates price sits below WMDST’s target and, given the negative MRO, suggests potential for price to move upward toward target levels as momentum reasserts.
RSI 48.05 also after a dip & reversal sits near neutral, implying room for upward momentum without overbought pressure; combined with a price that crosses above the -1x standard-deviation Bollinger band, short-term mean-reversion favors gains toward the 20–50 day averages.
Price sits at $45.23, above the 20-day average $42.84 and the 12-day EMA $42.89 (price12-day EMA shows a recent dip & reversal), but below the 50-day average $48.55 and 200-day average $52.20. Ichimoku readings show the chikou span above the cloud while Tenkan and Kijun levels (Tenkan $42.59; Kijun $43.58) support near-term bullish bias, though the longer-term averages remain resistance.
Volatility measures (42-day beta 1.54; 52-week beta 1.13) and a 10-day average volume below current trading volume indicate above-average sensitivity to market moves with recent volume draw not yet confirming a sustained breakout.
Fundamental Analysis
Earnings: EPS actual -$3.31 versus estimate -$3.36, delivering an EPS surprise of +1.49%. EBIT stands at -$76,067,000 and net income at -$71,127,000, reflecting ongoing development-stage operating losses aligned with active R&D investment.
Cash Position: Cash $157,415,000 and cash and short-term investments $301,275,000 provide substantial liquidity; operating cash flow measured -$65,158,000 and free cash flow -$54,732,000, consistent with an active clinical development cadence and sustaining runway for near-term readouts.
Profitability & Returns: Return on assets -15.27% and return on equity -17.60% confirm negative returns as expected for a clinical-stage biotech investing heavily in trials and registrational starts.
Growth: Revenue growth shows 23.71% (point value) while revenue growth year-over-year registers -139.11%; these figures reflect non-recurring revenue patterns common in the clinical stage and require context from program milestones rather than trend extrapolation.
Leverage & Liquidity: Total debt $755,000, debt-to-assets 0.17%, and a current ratio of 6.31 indicate a conservative balance-sheet structure with strong short-term liquidity. Interest coverage sits at -717.61x, reflecting negative operating income rather than debt stress.
Valuation Context: WMDST values the stock as under-valued. Price-to-book at 2.47 sits below the industry peer mean $5.28 and industry peer median $6.29 while remaining inside the industry peer range from -$10.06 to $16.59. Forward PE and PEG ratios appear negative, consistent with a company lacking positive earnings; P/E sits at -14.53 with a QoQ change of 5.88% and a YoY change of -49.07% (presented as point-change values converted to percentages where reported). These metrics signal an equity price that reflects developmental risk but also substantial cash coverage for upcoming registrational catalysts.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-04 |
| NEXT REPORT DATE: | 2025-10-31 |
| CASH FLOW | Begin Period Cash Flow | $ 166.0 M |
| Operating Cash Flow | $ -65.16 M | |
| Capital Expenditures | — | |
| Change In Working Capital | $ 9.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -8.15 M | |
| End Period Cash Flow | $ 157.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | — | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 46.0 K | |
| Depreciation and Amortization | $ 46.0 K | |
| Research and Development | $ 63.0 M | |
| Total Operating Expenses | $ 76.1 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | $ -76.02 M | |
| EBIT | $ -76.07 M | |
| Operating Income | $ -76.07 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ -71.13 M | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | $ -71.13 M | |
| Net Income From Continuing Operations | $ -71.13 M | |
| EARNINGS | ||
| EPS Estimate | $ -3.36 | |
| EPS Actual | $ -3.31 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 1.488 % | |
| Forward EPS | $ -2.73 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 452.8 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 404.2 M | |
| Total Current Assets | $ 306.6 M | |
| Cash and Short-Term Investments | $ 301.3 M | |
| Cash | $ 157.4 M | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 28.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 48.6 M | |
| Net Debt | — | |
| Total Debt | $ 755.0 K | |
| Total Liabilities | $ 48.6 M | |
| EQUITY | ||
| Total Equity | $ 404.2 M | |
| Retained Earnings | $ -977.16 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 19.21 | |
| Shares Outstanding | 21.040 M | |
| Revenue Per-Share | — | |
| VALUATION | ||
| Enterprise Value | $ 699.1 M | |
| Enterprise Multiple | -9.196 | |
| Enterprise Multiple QoQ | 16.16 % | |
| Enterprise Multiple YoY | -35.344 % | |
| Enterprise Multiple IPRWA | high: 47.216 median: 14.143 mean: 5.458 PRAX: -9.196 low: -68.907 | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.12 | |
| Asset To Liability | 9.316 | |
| Debt To Capital | 0.002 | |
| Debt To Assets | 0.002 | |
| Debt To Assets QoQ | -25.112 % | |
| Debt To Assets YoY | -69.074 % | |
| Debt To Assets IPRWA | high: 0.995 mean: 0.195 median: 0.062 PRAX: 0.002 low: 0.0 | |
| Debt To Equity | 0.002 | |
| Debt To Equity QoQ | -23.045 % | |
| Debt To Equity YoY | -67.077 % | |
| Debt To Equity IPRWA | high: 1.577 mean: 0.256 median: 0.059 PRAX: 0.002 low: -1.039 | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.473 | |
| Price To Book QoQ | 18.296 % | |
| Price To Book YoY | 17.616 % | |
| Price To Book IPRWA | high: 16.592 median: 6.295 mean: 5.284 PRAX: 2.473 low: -10.064 | |
| Price To Earnings (P/E) | -14.525 | |
| Price To Earnings QoQ | 5.881 % | |
| Price To Earnings YoY | -49.071 % | |
| Price To Earnings IPRWA | high: 44.732 mean: -11.159 PRAX: -14.525 median: -19.271 low: -73.374 | |
| PE/G Ratio | -23.891 | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | -15.557 | |
| Forward PE/G | -25.587 | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | — | |
| Asset Turnover Ratio QoQ | — | |
| Asset Turnover Ratio YoY | — | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 404.2 M | |
| Net Invested Capital | $ 404.2 M | |
| Invested Capital | $ 404.2 M | |
| Net Tangible Assets | $ 404.2 M | |
| Net Working Capital | $ 258.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 6.198 | |
| Current Ratio | 6.307 | |
| Current Ratio QoQ | -25.273 % | |
| Current Ratio YoY | -63.541 % | |
| Current Ratio IPRWA | high: 24.698 PRAX: 6.307 mean: 3.94 median: 2.52 low: 0.021 | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -0.01 | |
| Cost Of Debt | 11.642 % | |
| Interest Coverage Ratio | -717.613 | |
| Interest Coverage Ratio QoQ | 1.792 % | |
| Interest Coverage Ratio YoY | 102.91 % | |
| Interest Coverage Ratio IPRWA | high: 677.4 mean: 36.388 median: 2.347 PRAX: -717.613 low: -1465.352 | |
| Operating Cash Flow Ratio | -1.34 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -5.411 % | |
| Revenue Growth | 2371.192 % | |
| Revenue Growth QoQ | 0.0 % | |
| Revenue Growth YoY | -13910.892 % | |
| Revenue Growth IPRWA | PRAX: 2371.192 % high: 269.352 % mean: 20.608 % median: 12.272 % low: -259.856 % | |
| Earnings Growth | 0.608 % | |
| Earnings Growth QoQ | -94.893 % | |
| Earnings Growth YoY | -101.57 % | |
| Earnings Growth IPRWA | high: 155.0 % mean: 14.883 % median: 11.33 % PRAX: 0.608 % low: -175.0 % | |
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -54.73 M | |
| Free Cash Flow Yield | -5.476 % | |
| Free Cash Flow Yield QoQ | -5.161 % | |
| Free Cash Flow Yield YoY | 76.873 % | |
| Free Cash Flow Yield IPRWA | high: 36.371 % median: 0.516 % mean: -0.331 % PRAX: -5.476 % low: -74.318 % | |
| Free Cash Growth | 3.248 % | |
| Free Cash Growth QoQ | -158.575 % | |
| Free Cash Growth YoY | -89.45 % | |
| Free Cash Growth IPRWA | high: 157.51 % median: 13.256 % mean: 3.671 % PRAX: 3.248 % low: -193.262 % | |
| Free Cash To Net Income | 0.769 | |
| Cash Flow Margin | — | |
| Cash Flow To Earnings | 0.916 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | -15.27 % | |
| Return On Assets QoQ | 5.975 % | |
| Return On Assets YoY | 61.57 % | |
| Return On Assets IPRWA | high: 36.544 % median: 1.616 % mean: -1.354 % PRAX: -15.27 % low: -68.545 % | |
| Return On Capital Employed (ROCE) | -18.818 % | |
| Return On Equity (ROE) | -0.176 | |
| Return On Equity QoQ | 11.529 % | |
| Return On Equity YoY | 125.677 % | |
| Return On Equity IPRWA | high: 1.141 median: 0.04 mean: 0.008 PRAX: -0.176 low: -1.572 | |
| DuPont ROE | — | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |
Six-Week Outlook
Near-term direction hinges on momentum confirmation and continued headline cadence. Technicals present a bullish directional shift (DIpositive dip & reversal; DInegative peak & reversal) and a MACD crossing above its signal, supporting a short-term constructive bias toward the 50-day average near $48.55. Strong cash reserves and recent positive RADIANT topline results offer fundamental support for a sustained recovery if follow-on data or investor events sustain attention. Watch for volume confirmation above the 10–50 day averages and hold the 20-day average as initial short-term support; failure to hold the 20-day average would shift bias back toward consolidation around current levels.
About Praxis Precision Medicines, Inc.
Praxis Precision Medicines, Inc. (NASDAQ:PRAX) develops therapies targeting central nervous system disorders, specifically addressing neuronal excitation-inhibition imbalances. The company advances ulixacaltamide, currently in Phase III clinical trials, focusing on essential tremor through T-type calcium channel inhibition. Praxis also progresses PRAX-562 for pediatric developmental and epileptic encephalopathies and PRAX-628 for focal epilepsy treatment.
Further, Praxis explores PRAX-222 for early-onset SCN2A-DEE in pediatric patients, PRAX-020 for KCNT1-related epilepsies, and PRAX-080 targeting PCDH19. The company also investigates PRAX-090 and PRAX-100 for SYNGAP1 and SCN2A-LoF conditions. Strategic partnerships bolster their research, including a license agreement with RogCon Inc., collaborations with Ionis Pharmaceuticals, Inc., UCB Biopharma SRL, and The Florey Institute to develop novel antisense oligonucleotides. Established in 2015, Praxis Precision Medicines, Inc. operates out of Boston, Massachusetts, leveraging these collaborations to advance its clinical-stage biopharmaceutical pipeline.
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