Compass Pathways (NASDAQ:CMPS) Shares Down 7.1% – Here’s Why

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS)’s stock price fell 7.1% on Monday. The stock traded as low as $10.73 and last traded at $10.7540. Approximately 1,148,060 shares changed hands during trading, a decline of 66% from the average session volume of 3,398,678 shares. The stock had previously closed at $11.57.

Compass Pathways News Roundup

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

• Positive Sentiment: COMPASS says it expects to complete its COMP360 New Drug Application within two weeks, with a potential 30- to 60-day FDA review target. RBC said the company remains on track for a launch, making regulatory progress a key near-term catalyst. Compass Pathways Remains on Track for COMP360 Launch Following Q3 Results, RBC Says
• Positive Sentiment: Q3 loss per share was $0.31, narrower than analysts’ $0.39 estimate. A survey cited in coverage found 90% of interventional psychiatrists were willing to prescribe COMP360, suggesting potential clinician interest if the treatment is approved. Compass Pathways: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Analyst views are divided. Oppenheimer reiterated Outperform and BTIG maintained Buy with a $25 target, while Wells Fargo lowered its target from $13 to $10 and kept an Equal Weight rating. Wells Fargo recommendations
• Negative Sentiment: Competitive concerns have weighed on the stock after a rival’s NDA submission raised fears about the race to bring psychedelic treatments to market. Stifel characterized the Usona situation as highly atypical, but the competitive and regulatory uncertainty remains a risk. Stifel on Compass Pathways

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Royal Bank Of Canada reissued an “outperform” rating on shares of Compass Pathways in a report on Wednesday. Jefferies Financial Group reiterated a “buy” rating on shares of Compass Pathways in a research report on Wednesday, September 9th. Stifel Nicolaus lifted their price target on shares of Compass Pathways from $14.00 to $21.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Morgan Stanley boosted their price target on shares of Compass Pathways from $17.00 to $18.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Finally, Compass Point set a $25.00 price objective on shares of Compass Pathways in a research note on Tuesday, July 7th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $23.14.

Compass Pathways Price Performance

The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.60. The company has a market capitalization of $1.19 billion, a P/E ratio of -1.86 and a beta of 2.43. The company has a 50 day moving average price of $12.70 and a 200 day moving average price of $10.39.

Compass Pathways (NASDAQ:CMPS) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported ($0.31) EPS for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.08. On average, equities analysts predict that Compass Pathways PLC Sponsored ADR will post -1.26 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. North Star Investment Management Corp. increased its position in Compass Pathways by 23.9% during the 3rd quarter. North Star Investment Management Corp. now owns 9,317 shares of the company’s stock worth $116,000 after purchasing an additional 1,800 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Compass Pathways by 67.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 4,754 shares of the company’s stock valued at $26,000 after acquiring an additional 1,920 shares in the last quarter. WINTON GROUP Ltd grew its position in Compass Pathways by 20.1% during the 2nd quarter. WINTON GROUP Ltd now owns 17,900 shares of the company’s stock worth $253,000 after acquiring an additional 3,000 shares during the last quarter. Ancora Advisors LLC bought a new stake in Compass Pathways during the 2nd quarter worth $43,000. Finally, China Universal Asset Management Co. Ltd. increased its holdings in Compass Pathways by 15.3% in the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 24,432 shares of the company’s stock worth $317,000 after purchasing an additional 3,249 shares in the last quarter. 46.19% of the stock is owned by institutional investors.

About Compass Pathways

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.