CRISPR Therapeutics (CRSP -1.85%) could revolutionize the healthcare sector, and that has made CRISPR stock a hot buy. While the company isn't profitable yet, it had its first treatment (for sickle cell disease) approved by regulators in December 2023.
It also has promising treatments in the works for cancer and cardiovascular disease, all utilizing the CRISPR gene editing platform. If you're thinking about investing in CRISPR stock, here's how to do it and what you should know first.
How to buy
How to buy CRISPR stock
It's easy to invest in CRISPR Therapeutics since it's a publicly traded company. Follow the steps below to buy CRISPR stock.
1. Open a brokerage account
If you already have a brokerage account you like, you can skip this step. Otherwise, check out our guide to the top stockbrokers to compare options. Some of the most important features to look for are commission-free trading for stocks and exchange-traded funds (ETFs), useful research and analysis tools, and a quality trading platform you're comfortable using.
After you've found a brokerage, open an account. You'll need to provide some information on yourself, including personal details and employment information, and answer a few questions about your finances. In most cases, the entire process doesn't take more than 15 to 20 minutes.
2. Figure out your budget
Next up is figuring out how much you want to invest and an investing schedule. Most investors go with either dollar-cost averaging, meaning investing a fixed amount on a schedule, or investing a lump sum they've saved. So, for example, you might decide to invest $250 every two weeks if you want to dollar-cost average. Or, if you have $5,000 saved, you could invest it all at once.
If this is your first time investing, don't put all your money in CRISPR stock. Even when you like a company, having all your money invested in it is extremely risky. Spread your funds across many companies to diversify your investment portfolio.
3. Do your research
Before you invest in stocks, you should always do your due diligence. Spend some time learning about the company to see if it's a sound long-term investment. Don't just take someone else's word for it or buy because there's a lot of hype around it.
Every investor has their own way of doing this. For most investors, especially those who plan to buy and hold for a long time, fundamental analysis works well. This refers to using the information available to determine if a stock is attractively priced. If you haven't done this before, learning how to research stocks is a good first step.
4. Place an order
Deposit money to your brokerage account, if you haven't already. It can take a few business days for ACH transfers to process, so it's best to do this in advance. In your broker's trade tool, look up CRISPR Therapeutics. You can do so by searching for its ticker symbol: CRSP.
Select the option to buy, enter the amount you want to purchase, and choose an order type. The most common options are market orders and limit orders. A market order is an order to buy the stock immediately at any available price. For buy orders, you'll typically get a price near the current ask price. A limit order is an order to buy the stock only at a specified price.
Stock Ticker
Should I invest?
Should I invest in CRISPR stock?
With CRISPR Therapeutics, it's all about potential. By investing in it, you could get in early with a company that could explode in value, depending on how its product development goes.
Along with partner Vertex Pharmaceuticals (VRTX -0.2%), CRISPR Therapeutics submitted its first treatment, Casgevy (exa-cel), for approval by regulators in 2023. The U.S. Food and Drug Administration approved Casgevy for treatment of sickle cell disease in December 2023 and for treatment of beta-thalassemia in January 2024.
CRISPR Therapeutics receives 40% of profits on Casgevy. The treatment could possibly generate $1.7 billion in sales by 2028, according to Evaluate Pharma.
The approval of Casgevy is good news for investors. CRISPR Therapeutics also has other treatments it's developing. It has several cancer therapies in the early-to-mid stages, and it has two clinical-stage programs that would use gene editing to treat cardiovascular disease.
It's important not to be overly optimistic. Biotech is one of the riskiest market sectors, so this is a stock for more aggressive investors. That being said, there's a lot to like about CRISPR stock as an investment. Just remember to be patient, and plan to hold it for at least five years.
Buy-and-Hold Strategy
Profitability
Is CRISPR Therapeutics profitable?
CRISPR Therapeutics isn't profitable. It reported a net loss of $150.7 million in 2023. The company also states in its annual report that it has incurred significant operating losses since its inception and expects to do so for the foreseeable future.
This is normal for biotech companies, which are generally unprofitable for long periods of time while developing treatments. It's one of the main reasons they're a higher-risk investment.
Dividends
Does CRISPR Therapeutics pay a dividend?
CRISPR Therapeutics doesn't pay a dividend. It hasn't paid one before, either, and it's unlikely to pay a dividend in the foreseeable future. Biotech stocks rarely pay dividends, since it makes more sense for them to reinvest profits in developing new treatments. People interested in dividend investing don't have many options in this space.
ETF options
ETFs with exposure to CRISPR Therapeutics
There are quite a few ETFs that invest in CRISPR Therapeutics. The advantage of investing in ETFs is that they contain a large number of stocks, so you get a much more diversified portfolio this way as opposed to picking individual stocks. You also save time since you can invest in just one or a few ETFs, which requires less research than picking 25 or more stocks.
Here are a few of the larger ETFs with exposure to CRISPR Therapeutics:
- The Ark Genomic Revolution ETF (ARKG -1.47%) is an actively managed ETF that invests in companies incorporating genomics, including gene editing and gene therapy.
- The Global X Genomics & Biotechnology ETF (GNOM -1.16%) invests in companies that stand to benefit from the advancement of genomic science.
- The iShares Genomics Immunology and Healthcare ETF (NYSEARCA:IDNA) invests in companies at the forefront of genomics and immunology innovation.
Those three are all biotech ETFs that have a fairly high percentage of fund allocation in CRISPR Therapeutics stock. There are also much broader funds containing far more stocks and a smaller CRISPR stock allocation, such as small-cap and mid-cap ETFs. If you don't want to pick stocks, an ETF or a mix of ETFs is a popular way to invest.
Stock splits
Will CRISPR Therapeutics stock split?
There's no indication that CRISPR Therapeutics will split its stock. It hasn't had a stock split before, and the option hasn't been discussed publicly. Upcoming stock splits are usually announced at least a few weeks before they happen, and often much earlier, so CRISPR Therapeutics investors will know in advance if it plans to split its stock.
Related investing topics
The bottom line
The bottom line on CRISPR Therapeutics
Gene editing is looking like a major innovation for the healthcare industry, and CRISPR Therapeutics is at the forefront. All of its product candidates use the CRISPR gene-editing technique. With one approved product so far and more hopefully on the way, the sky's the limit.
There are a couple of things to keep in mind if you want to invest in CRISPR stock. The risk and reward are both higher with biotech companies than with most market sectors. You also shouldn't expect immediate results with CRISPR Therapeutics, since most of its treatments are still in the early stages. This is a stock for patient investors who are comfortable with volatility.
FAQs
Investing in CRISPR Therapeutics FAQs
What is the future price of CRISPR stock?
Recent analysis has estimated that CRISPR Therapeutics' share prices could reach $60 to $70 in 2025. However, that's only based on analyst estimates, and it's impossible to predict future stock prices.
Does Bill Gates invest in CRISPR?
Yes, Bill Gates invests in CRISPR technology. The Bill & Melinda Gates Foundation committed a grant of $3.07 million to CRISPR Therapeutics in 2020. Gates was also part of a $120 million funding round in 2015 for Editas (NASDAQ:EDIT), another biotech company that uses CRISPR technology.
Who is the largest shareholder of CRISPR?
Capital International Investors was the largest shareholder of CRISPR Therapeutics as of Sept. 30, 2024. It holds more than 9% of the company's outstanding shares.
