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

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS)’s stock price gapped up prior to trading on Tuesday. The stock had previously closed at $8.41, but opened at $9.00. Compass Pathways shares last traded at $9.1150, with a volume of 2,243,143 shares changing hands.

Trending Headlines about Compass Pathways

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

• Positive Sentiment: BTIG Research reaffirmed its “Buy” rating and set a $25 price target, implying substantial upside from the recently cited $9.05 share price. The target suggests the firm believes Compass’s pipeline and commercialization opportunity are undervalued.
• Positive Sentiment: Compass reported a quarterly loss of $0.31 per share, better than the $0.39 consensus estimate. Although the company remains unprofitable, the earnings beat may support confidence in its cost controls and development progress. Compass Pathways Press Release
• Positive Sentiment: Jefferies said Compass’s robust clinical data could support pricing power if its treatment reaches the market. This reinforces the potential value of the company’s clinical results and future commercial economics. Jefferies Commentary on Compass Pathways
• Positive Sentiment: FDA approval remains a major potential catalyst. A successful approval could materially expand Compass’s addressable market and provide a significant boost to the shares; the average Wall Street price target also indicates substantial upside. Why Compass Pathways Is Worth a Second Look
• Neutral Sentiment: A joint survey with the Depression and Bipolar Support Alliance highlighted the burden of treatment-resistant depression on patients and caregivers. The findings may strengthen awareness of the unmet need Compass is targeting, but they do not directly change near-term revenue or regulatory expectations. Compass Pathways and DBSA Survey
• Negative Sentiment: Competitive concerns in the FDA psychedelic-treatment race are the main pressure on CMPS. Reports that Compass and other companies could face increased competition have raised doubts about market share, timing, and pricing, contributing to weakness despite the earnings beat. CMPS and HELP Face Competitive FDA Concerns

Analyst Ratings Changes

CMPS has been the subject of several recent analyst reports. Royal Bank Of Canada lowered their target price on Compass Pathways from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Thursday, August 6th. Jefferies Financial Group reiterated a “buy” rating on shares of Compass Pathways in a research note on Wednesday, September 9th. HC Wainwright reduced their price target on Compass Pathways from $70.00 to $65.00 and set a “buy” rating for the company in a report on Friday, August 7th. B. Riley Financial raised their price objective on Compass Pathways from $17.00 to $22.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Finally, Stifel Nicolaus lifted their price objective on Compass Pathways from $14.00 to $21.00 and gave the stock a “buy” rating in a report on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $23.36.

Compass Pathways Trading Up 7.0%

The company has a debt-to-equity ratio of 0.60, a current ratio of 1.30 and a quick ratio of 1.30. The business has a fifty day moving average of $12.81 and a 200-day moving average of $10.39. The stock has a market capitalization of $1.25 billion, a price-to-earnings ratio of -1.94 and a beta of 2.55.

Compass Pathways (NASDAQ:CMPS) last issued its quarterly earnings results on Wednesday, November 4th. The company reported ($0.31) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.08. On average, equities analysts anticipate that Compass Pathways PLC Sponsored ADR will post -1.26 earnings per share for the current fiscal year.

Institutional Trading of Compass Pathways

Hedge funds and other institutional investors have recently made changes to their positions in the business. Orbimed Advisors LLC acquired a new position in shares of Compass Pathways during the first quarter worth approximately $6,363,000. Affinity Asset Advisors LLC increased its holdings in shares of Compass Pathways by 454.2% in the first quarter. Affinity Asset Advisors LLC now owns 1,108,483 shares of the company’s stock valued at $6,130,000 after purchasing an additional 908,483 shares in the last quarter. Eversept Partners LP acquired a new stake in shares of Compass Pathways in the first quarter valued at approximately $3,749,000. CenterBook Partners LP increased its holdings in shares of Compass Pathways by 454.1% in the third quarter. CenterBook Partners LP now owns 695,943 shares of the company’s stock valued at $8,658,000 after purchasing an additional 570,349 shares in the last quarter. Finally, Eagle Health Investments LP raised its position in Compass Pathways by 35.6% in the 1st quarter. Eagle Health Investments LP now owns 2,060,427 shares of the company’s stock worth $11,394,000 after purchasing an additional 541,039 shares during the last quarter. 46.19% of the stock is currently owned by institutional investors.

Compass Pathways Company Profile

Compass Pathways plc is a biotechnology company developing novel treatments for mental health conditions. The company’s lead investigational product is COMP360, a proprietary formulation of synthetic psilocybin administered with psychological support in a controlled clinical setting.

Compass Pathways has focused primarily on treatment-resistant depression, a condition in which patients do not respond adequately to existing therapies. Its research programs have included mid- and late-stage clinical trials designed to evaluate the safety and effectiveness of COMP360, as well as studies exploring its potential use in other mental health disorders.

Founded in 2016 and headquartered in London, Compass Pathways conducts research and clinical development activities across the United States, the United Kingdom and other international markets.