Morgan Stanley Cuts Compass Pathways (NASDAQ:CMPS) Price Target to $16.00

Compass Pathways (NASDAQ:CMPS) had its price objective decreased by Morgan Stanley from $18.00 to $16.00 in a research report sent to investors on Wednesday,Benzinga reports. Morgan Stanley currently has an overweight rating on the stock.

Several other analysts have also recently issued reports on the stock. HC Wainwright increased their target price on shares of Compass Pathways from $40.00 to $70.00 and gave the stock a “buy” rating in a research note on Monday, March 2nd. Lifesci Capital upgraded shares of Compass Pathways to a “strong-buy” rating in a research report on Thursday, February 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Compass Pathways in a report on Wednesday, January 21st. Royal Bank Of Canada increased their price objective on Compass Pathways from $21.00 to $22.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. Finally, Compass Point set a $15.00 price objective on Compass Pathways in a research note on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Compass Pathways has an average rating of “Moderate Buy” and a consensus price target of $21.63.

Compass Pathways Trading Down 4.8%

Shares of CMPS opened at $5.37 on Wednesday. The business’s 50-day moving average price is $6.66 and its 200-day moving average price is $6.30. Compass Pathways has a twelve month low of $2.25 and a twelve month high of $8.90. The stock has a market cap of $515.63 million, a PE ratio of -1.74 and a beta of 1.90. The company has a quick ratio of 1.23, a current ratio of 0.77 and a debt-to-equity ratio of 0.55.

Compass Pathways (NASDAQ:CMPS) last released its quarterly earnings data on Tuesday, March 24th. The company reported ($1.00) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.59). On average, equities analysts forecast that Compass Pathways will post -2.33 EPS for the current fiscal year.

Institutional Investors Weigh In On Compass Pathways

Several hedge funds have recently bought and sold shares of CMPS. Toronto Dominion Bank grew its stake in Compass Pathways by 152.9% in the 4th quarter. Toronto Dominion Bank now owns 2,529,013 shares of the company’s stock worth $17,447,000 after buying an additional 1,529,013 shares in the last quarter. Jefferies Financial Group Inc. bought a new position in shares of Compass Pathways in the 3rd quarter worth $7,890,000. Nantahala Capital Management LLC raised its position in shares of Compass Pathways by 47.7% during the 2nd quarter. Nantahala Capital Management LLC now owns 4,179,930 shares of the company’s stock valued at $11,704,000 after buying an additional 1,350,698 shares in the last quarter. Ameriprise Financial Inc. bought a new stake in shares of Compass Pathways during the 3rd quarter worth $6,926,000. Finally, Hsbc Holdings PLC bought a new stake in shares of Compass Pathways during the 2nd quarter worth $3,011,000. 46.19% of the stock is currently owned by institutional investors.

Key Stories Impacting Compass Pathways

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

• Positive Sentiment: HC Wainwright reaffirmed a “Buy” rating with a very high $70 price target, signaling a strong long‑term bullish case and large implied upside versus the current share price. (This supports investor optimism even as near‑term forecasts were adjusted.)
• Neutral Sentiment: Upcoming FDA review meeting for COMP360 is a potential binary catalyst — outcomes or guidance from that meeting could swing sentiment materially in either direction. Compass Pathways (CMPS): What will come out of FDA review meeting for depression drug candidate COMP360?
• Neutral Sentiment: Canaccord cut its price target from $20 to $18 but kept a “Buy” rating — a modest downgrade that still implies significant upside from current levels. Canaccord target cut report
• Negative Sentiment: HC Wainwright lowered its FY2026 EPS forecast to ($1.66) from ($1.36) and cut FY2027 to ($0.96) (previously $0.72), and issued lower quarterly EPS estimates across 2026–2027 — firms’ reduced profit outlook increases short‑term pressure on the share price.
• Negative Sentiment: Morgan Stanley trimmed its price target to $16, which reduces near‑term upside and may prompt short‑term selling. Morgan Stanley Lowers Compass Pathways (NASDAQ:CMPS) Price Target to $16.00
• Negative Sentiment: Recent earnings (reported 3/24) missed estimates (EPS -$1.00 vs. consensus -$0.41), reinforcing concerns on near‑term profitability and contributing to downward pressure on the stock.

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.