Compass Pathways (NASDAQ:CMPS) Shares Gap Down – What’s Next?

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $12.84, but opened at $11.75. Compass Pathways shares last traded at $11.8670, with a volume of 3,940,334 shares changing hands.

Compass Pathways News Summary

Here are the key news stories impacting Compass Pathways this week:

• Positive Sentiment: Compass Pathways announced 26-week data from its second Phase 3 COMP006 trial, saying COMP360 showed a rapid and durable antidepressant effect in treatment-resistant depression, strengthening the FDA case for the drug. Business Wire article
• Positive Sentiment: Evercore upgraded CMPS from in-line to outperform and set a $21 price target, citing the latest psychedelic therapy data. Seeking Alpha article
• Positive Sentiment: BTIG raised its price target to $25 from $14 and kept a buy rating, while HC Wainwright reaffirmed buy and lifted its target to $70, reflecting much higher upside expectations. Benzinga article
• Positive Sentiment: Morgan Stanley reaffirmed an overweight rating with a $17 target, adding to the bullish analyst backdrop. Benzinga article
• Neutral Sentiment: Media coverage noted the stock’s gains were muted at times as investors balanced the promising trial results against valuation concerns and the need for FDA filing progress. Yahoo Finance article
• Neutral Sentiment: Additional commentary reviewed Phase 3 COMP006 data and highlighted the durability of the treatment response, but did not materially change the thesis beyond reinforcing the recent trial readout. Seeking Alpha article

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Wall Street Zen raised shares of Compass Pathways from a “strong sell” rating to a “hold” rating in a research report on Saturday, May 16th. Canaccord Genuity Group raised their price target on shares of Compass Pathways from $18.00 to $20.00 and gave the company a “buy” rating in a research report on Friday, June 26th. Stifel Nicolaus lifted their price target on Compass Pathways from $14.00 to $21.00 and gave the company a “buy” rating in a research note on Tuesday. Jefferies Financial Group reissued a “buy” rating on shares of Compass Pathways in a report on Tuesday. Finally, HC Wainwright reissued a “buy” rating and issued a $70.00 price objective on shares of Compass Pathways in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Compass Pathways has a consensus rating of “Moderate Buy” and an average target price of $24.15.

Compass Pathways Price Performance

The company has a quick ratio of 3.32, a current ratio of 3.32 and a debt-to-equity ratio of 0.15. The business’s 50-day moving average is $11.80 and its two-hundred day moving average is $8.53. The company has a market capitalization of $1.89 billion, a P/E ratio of -4.43 and a beta of 2.47.

Compass Pathways (NASDAQ:CMPS) last released its quarterly earnings results on Wednesday, May 13th. The company reported ($0.30) earnings per share for the quarter, topping the consensus estimate of ($0.45) by $0.15. As a group, analysts predict that Compass Pathways PLC Sponsored ADR will post -1.24 earnings per share for the current year.

Hedge Funds Weigh In On Compass Pathways

Several institutional investors have recently modified their holdings of CMPS. Hennion & Walsh Asset Management Inc. boosted its position in Compass Pathways by 169.0% in the fourth quarter. Hennion & Walsh Asset Management Inc. now owns 424,800 shares of the company’s stock worth $2,931,000 after purchasing an additional 266,908 shares during the last quarter. BIT Capital GmbH increased its position in shares of Compass Pathways by 2,963.4% during the 4th quarter. BIT Capital GmbH now owns 288,814 shares of the company’s stock valued at $1,993,000 after purchasing an additional 279,386 shares during the last quarter. Eagle Health Investments LP increased its position in shares of Compass Pathways by 62.4% during the 4th quarter. Eagle Health Investments LP now owns 1,519,388 shares of the company’s stock valued at $10,484,000 after purchasing an additional 583,938 shares during the last quarter. NEXTBio Capital Management LP bought a new stake in shares of Compass Pathways during the 4th quarter worth $5,193,000. Finally, Jefferies Financial Group Inc. raised its stake in shares of Compass Pathways by 14.5% during the 4th quarter. Jefferies Financial Group Inc. now owns 1,576,905 shares of the company’s stock worth $10,881,000 after purchasing an additional 200,000 shares during the period. 46.19% of the stock is owned by institutional investors.

About Compass Pathways

Compass Pathways (NASDAQ: CMPS) is a clinical-stage biotechnology company focused on the development and commercialization of psilocybin therapy for mental health disorders. Founded in 2016 and headquartered in London with additional offices in the United States, Compass Pathways is pioneering the use of synthetic psilocybin combined with psychotherapy to address treatment-resistant depression. The company’s flagship program is a Phase IIb clinical trial evaluating COMP360, its proprietary psilocybin formulation, which has received Breakthrough Therapy designation from the U.S.