Axsome Therapeutics (NASDAQ:AXSM) Price Target Cut to $250.00 by Analysts at Guggenheim

Key Points

• Guggenheim cut Axsome Therapeutics’ price target to $250 from $275 but maintained a “buy” rating, implying roughly 73% upside from the stock’s $144.18 opening price.
• Axsome reported third-quarter revenue of $259.7 million, up 51.9% year over year and above estimates, while its $0.25 per-share loss was narrower than the expected $0.63 loss.
• Despite a consensus “Moderate Buy” rating and $270.95 average target, several analysts recently reduced their targets, while concerns remain about slower-than-expected AUVELITY adoption for Alzheimer’s-related agitation.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) had its price objective cut by Guggenheim from $275.00 to $250.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Guggenheim's price objective suggests a potential upside of 73.40% from the stock's current price.

A number of other brokerages have also issued reports on AXSM. UBS Group restated a "buy" rating and issued a $239.00 price target on shares of Axsome Therapeutics in a research note on Tuesday. Needham & Company LLC increased their price objective on shares of Axsome Therapeutics from $267.00 to $268.00 and gave the company a "buy" rating in a research note on Tuesday, August 11th. BMO Capital Markets began coverage on shares of Axsome Therapeutics in a report on Monday, July 20th. They set an "outperform" rating and a $310.00 price objective for the company. Truist Financial raised their price objective on shares of Axsome Therapeutics from $200.00 to $285.00 and gave the stock a "buy" rating in a report on Wednesday, September 23rd. Finally, Robert W. Baird dropped their target price on shares of Axsome Therapeutics from $246.00 to $220.00 and set an "outperform" rating for the company in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Axsome Therapeutics currently has an average rating of "Moderate Buy" and a consensus target price of $270.95.

Axsome Therapeutics Price Performance

Shares of NASDAQ AXSM opened at $144.18 on Tuesday. Axsome Therapeutics has a fifty-two week low of $123.00 and a fifty-two week high of $260.19. The business has a 50 day moving average price of $183.33 and a two-hundred day moving average price of $198.74. The company has a quick ratio of 1.34, a current ratio of 1.43 and a debt-to-equity ratio of 1.52. The firm has a market cap of $7.55 billion, a PE ratio of -38.09 and a beta of 0.86.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) last announced its earnings results on Monday, November 2nd. The company reported ($0.25) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.63) by $0.38. The company had revenue of $259.69 million for the quarter, compared to analyst estimates of $249.19 million. Axsome Therapeutics had a negative return on equity of 265.55% and a negative net margin of 24.68%. Axsome Therapeutics's quarterly revenue was up 51.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.94) EPS. Sell-side analysts expect that Axsome Therapeutics will post -3.04 earnings per share for the current fiscal year.

Insider Buying and Selling at Axsome Therapeutics

In other Axsome Therapeutics news, COO Mark L. Jacobson sold 10,000 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $208.65, for a total transaction of $2,086,500.00. Following the completion of the sale, the chief operating officer owned 10,000 shares in the company, valued at $2,086,500. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Herriot Tabuteau sold 45,004 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $212.01, for a total transaction of $9,541,298.04. Following the sale, the chief executive officer directly owned 7,229 shares in the company, valued at $1,532,620.29. This trade represents a 86.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 59,664 shares of company stock worth $12,624,805 over the last 90 days. 20.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. GAMMA Investing LLC boosted its position in shares of Axsome Therapeutics by 14.9% in the 2nd quarter. GAMMA Investing LLC now owns 347 shares of the company's stock valued at $85,000 after purchasing an additional 45 shares during the period. Concurrent Investment Advisors LLC lifted its position in shares of Axsome Therapeutics by 4.7% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 1,739 shares of the company's stock valued at $426,000 after acquiring an additional 78 shares in the last quarter. Assetmark Inc. lifted its position in shares of Axsome Therapeutics by 7.2% in the 1st quarter. Assetmark Inc. now owns 1,182 shares of the company's stock valued at $200,000 after acquiring an additional 79 shares in the last quarter. Allworth Financial LP lifted its position in shares of Axsome Therapeutics by 5.7% in the 2nd quarter. Allworth Financial LP now owns 1,566 shares of the company's stock valued at $383,000 after acquiring an additional 84 shares in the last quarter. Finally, Praxis Investment Management Inc. boosted its stake in Axsome Therapeutics by 10.0% in the 1st quarter. Praxis Investment Management Inc. now owns 1,265 shares of the company's stock worth $214,000 after purchasing an additional 115 shares during the period. 81.49% of the stock is owned by institutional investors and hedge funds.

Axsome Therapeutics News Summary

Here are the key news stories impacting Axsome Therapeutics this week:

• Positive Sentiment: Axsome reported third-quarter revenue of $259.7 million, up 51.9% year over year and above the $249.2 million consensus estimate. Its adjusted loss of $0.25 per share was substantially narrower than the expected $0.63 loss and the year-ago loss of $0.94. Axsome Third-Quarter Results
• Positive Sentiment: Sales increased across Axsome’s key commercial brands, while management highlighted pipeline milestones expected in 2027. The earnings call also pointed to broader growth opportunities beyond the current product portfolio. Axsome Sales and Pipeline Update
• Neutral Sentiment: Axsome will participate in four healthcare investor conferences from November 9 through November 16. The events could provide updates on commercialization plans, clinical programs and future growth. Axsome Investor Conferences
• Negative Sentiment: Analysts lowered their price targets despite maintaining favorable ratings: Robert W. Baird cut its target to $220 from $246 while keeping an “outperform” rating, UBS reduced its target to $239 from $256, and Piper Sandler lowered its target to $235 from $238. The reductions signal more cautious expectations, although the targets remain well above the current trading level. Baird Axsome Price Target
• Negative Sentiment: Investor concerns center on AUVELITY’s slower-than-expected adoption for Alzheimer’s-related agitation. Recent growth appears to be driven more by prescriptions for depression in patients under 65 than by the newer Alzheimer’s opportunity, while some quarterly revenue benefit came from one-time items and improved gross-to-net dynamics rather than sustainable volume growth. Axsome Launch Concerns

About Axsome Therapeutics

Axsome Therapeutics, Inc is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system (CNS) disorders. Founded in 2012 and headquartered in New York, the company develops medicines for conditions with significant unmet medical needs, including depression, narcolepsy, excessive daytime sleepiness, and other neurological disorders.

Axsome's commercial products include Auvelity (dextromethorphan and bupropion), an oral treatment approved in the United States for major depressive disorder in adults, and Sunosi (solriamfetol), a therapy for excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea.

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