Bright Minds Biosciences (NASDAQ:DRUG) Reaches New 12-Month Low – Time to Sell?

Bright Minds Biosciences Inc. (NASDAQ:DRUG) hit a new 52-week low during mid-day trading on Monday. The company traded as low as $18.90 and last traded at $26.20, with a volume of 1,823,392 shares trading hands. The stock had previously closed at $54.98.

Key Bright Minds Biosciences News

Here are the key news stories impacting Bright Minds Biosciences this week:

• Negative Sentiment: The FDA cited toxicity findings in mice, along with insufficient pharmacokinetic and juvenile-toxicity data, in placing the BMB-101-105 study on partial hold. The decision delays development of BMB-101 for developmental and epileptic encephalopathies and raises concerns about the drug’s safety profile. Bright Minds Biosciences Provides Update About Planned Study with BMB-101
• Negative Sentiment: The hold affects a key clinical program that was intended to evaluate ascending doses of BMB-101 in a randomized, placebo-controlled Phase 2 trial. Bright Minds may need to provide additional studies or data before the trial can proceed, potentially increasing development costs and extending timelines.
• Negative Sentiment: Levi & Korsinsky announced an investigation into potential claims on behalf of investors who suffered losses. The investigation adds a legal and reputational overhang, although it does not itself change the company’s clinical status. Bright Minds Biosciences Investigation Notice

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on DRUG shares. Oppenheimer downgraded shares of Bright Minds Biosciences to a “market perform” rating in a research report on Thursday, August 20th. Benchmark reaffirmed a “buy” rating on shares of Bright Minds Biosciences in a research report on Thursday, August 20th. Zacks Research lowered shares of Bright Minds Biosciences from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 15th. Wolfe Research initiated coverage on shares of Bright Minds Biosciences in a research note on Thursday, October 15th. They set an “outperform” rating and a $150.00 target price for the company. Finally, Wall Street Zen cut Bright Minds Biosciences from a “hold” rating to a “sell” rating in a report on Saturday, October 3rd. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $129.00.

Bright Minds Biosciences Trading Down 52.3%

The stock has a 50 day simple moving average of $58.16 and a 200-day simple moving average of $73.00. The firm has a market capitalization of $254.93 million, a P/E ratio of -12.60 and a beta of -5.22.

Bright Minds Biosciences (NASDAQ:DRUG) last released its quarterly earnings results on Friday, August 14th. The company reported ($0.17) EPS for the quarter, beating the consensus estimate of ($1.22) by $1.05. As a group, sell-side analysts expect that Bright Minds Biosciences Inc. will post -2.93 earnings per share for the current fiscal year.

Institutional Trading of Bright Minds Biosciences

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Orbimed Advisors LLC purchased a new stake in Bright Minds Biosciences during the first quarter valued at approximately $2,919,000. Janus Henderson Group PLC boosted its stake in shares of Bright Minds Biosciences by 11.1% during the 1st quarter. Janus Henderson Group PLC now owns 1,284,324 shares of the company’s stock worth $93,518,000 after acquiring an additional 128,329 shares during the last quarter. Vivo Capital LLC boosted its stake in shares of Bright Minds Biosciences by 11.1% during the 1st quarter. Vivo Capital LLC now owns 557,172 shares of the company’s stock worth $40,657,000 after acquiring an additional 55,555 shares during the last quarter. ADAR1 Capital Management LLC boosted its stake in shares of Bright Minds Biosciences by 868.6% during the 1st quarter. ADAR1 Capital Management LLC now owns 33,900 shares of the company’s stock worth $2,474,000 after acquiring an additional 30,400 shares during the last quarter. Finally, Walleye Capital LLC grew its position in shares of Bright Minds Biosciences by 108.0% during the 1st quarter. Walleye Capital LLC now owns 53,706 shares of the company’s stock valued at $3,919,000 after acquiring an additional 27,880 shares during the period. 40.52% of the stock is owned by hedge funds and other institutional investors.

About Bright Minds Biosciences

Bright Minds Biosciences Inc is a biotechnology company focused on developing novel treatments for neurological and psychiatric disorders. The company’s research is centered on serotonergic compounds designed to provide therapeutic benefits associated with psychedelic medicines while potentially reducing unwanted effects such as hallucinations and cardiovascular or behavioral complications.

Bright Minds’ pipeline includes BMB-101, a selective serotonin 5-HT2C receptor agonist being developed for conditions including substance use disorders.