Axsome Therapeutics (NASDAQ:AXSM) Price Target Cut to $272.00 by Analysts at Mizuho

Key Points

• Mizuho lowered its Axsome Therapeutics price target from $284 to $272 while maintaining an “outperform” rating; the target implies about 94.8% upside from the share price cited in the report.
• Analyst sentiment remains broadly positive: MarketBeat’s consensus rating is “Moderate Buy,” with an average price target of $267.58.
• Axsome reported quarterly revenue of $259.7 million, up 51.9% year over year and above estimates, while its per-share loss was narrower than analysts expected. The article also notes investor concerns about the pace of Auvelity’s Alzheimer’s agitation launch.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) had its price objective dropped by investment analysts at Mizuho from $284.00 to $272.00 in a report released on Wednesday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Mizuho's price objective indicates a potential upside of 94.83% from the stock's current price.

Several other research firms have also recently weighed in on AXSM. Deutsche Bank Aktiengesellschaft reduced their price target on Axsome Therapeutics from $280.00 to $267.00 and set a "buy" rating on the stock in a report on Tuesday, September 29th. HC Wainwright reiterated a "buy" rating on shares of Axsome Therapeutics in a report on Friday, September 25th. BMO Capital Markets initiated coverage on shares of Axsome Therapeutics in a research report on Monday, July 20th. They set an "outperform" rating and a $310.00 target price on the stock. UBS Group cut their target price on shares of Axsome Therapeutics from $256.00 to $239.00 and set a "buy" rating on the stock in a research report on Tuesday. Finally, Piper Sandler reduced their target price on shares of Axsome Therapeutics from $258.00 to $238.00 and set an "overweight" rating on the stock in a report on Monday, October 26th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Axsome Therapeutics currently has an average rating of "Moderate Buy" and an average price target of $267.58.

Axsome Therapeutics Stock Performance

Shares of AXSM stock opened at $139.61 on Wednesday. Axsome Therapeutics has a twelve month low of $123.00 and a twelve month high of $260.19. The company has a debt-to-equity ratio of 1.52, a quick ratio of 1.34 and a current ratio of 1.43. The stock's fifty day simple moving average is $182.01 and its 200 day simple moving average is $198.55.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) last issued its earnings results on Monday, November 2nd. The company reported ($0.25) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.63) by $0.38. The business had revenue of $259.69 million during the quarter, compared to analysts' expectations of $249.19 million. Axsome Therapeutics had a negative return on equity of 218.52% and a negative net margin of 18.18%. The business's revenue for the quarter was up 51.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.94) EPS. On average, sell-side analysts predict that Axsome Therapeutics will post -3.04 earnings per share for the current fiscal year.

Insider Transactions at Axsome Therapeutics

In related news, CEO Herriot Tabuteau sold 4,660 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $213.95, for a total value of $997,007.00. Following the sale, the chief executive officer directly owned 7,229 shares in the company, valued at $1,546,644.55. This represents a 39.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO Mark L. Jacobson sold 10,000 shares of the stock in a transaction that occurred 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 sale, the chief operating officer directly owned 10,000 shares of the company's stock, valued at $2,086,500. This represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. 20.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of AXSM. Hollencrest Capital Management increased its position in Axsome Therapeutics by 400.0% in the 1st quarter. Hollencrest Capital Management now owns 200 shares of the company's stock valued at $34,000 after buying an additional 160 shares in the last quarter. ABS Investment Management LLC acquired a new position in Axsome Therapeutics during the 2nd quarter worth approximately $171,339,000. ABS Direct Equity Fund LLC acquired a new position in Axsome Therapeutics during the 2nd quarter worth approximately $60,000. Silvant Capital Management LLC bought a new position in Axsome Therapeutics in the second quarter worth approximately $66,000. Finally, Parkside Financial Bank & Trust boosted its holdings in Axsome Therapeutics by 505.4% in the second quarter. Parkside Financial Bank & Trust now owns 339 shares of the company's stock worth $83,000 after acquiring an additional 283 shares in the last quarter. Institutional investors and hedge funds own 81.49% of the company's stock.

Axsome Therapeutics News Summary

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

• Positive Sentiment: Axsome reported Q3 revenue of $259.7 million, up 51.9% year over year and above estimates, and a loss of $0.25 per share versus a consensus loss of roughly $0.63. The results point to continued commercial growth and a narrower loss. Q3 results and business update
• Positive Sentiment: Bank of America reportedly considers the stock’s nearly 20% month-long decline excessive, suggesting potential recovery if investor concerns ease. BofA view on the selloff
• Neutral Sentiment: Analyst views remain broadly constructive but targets have been trimmed: RBC, Guggenheim, Baird and UBS lowered targets while retaining positive ratings; Morgan Stanley raised its target slightly but kept an equal-weight rating. The changes may reflect more cautious assumptions, despite substantial upside implied by the targets.
• Neutral Sentiment: Axsome plans to participate in several November investor conferences. These appearances could provide updates, but the announcement itself does not change the company’s outlook. Investor conference announcement
• Negative Sentiment: Investors remain concerned that Auvelity’s launch for Alzheimer’s disease agitation is progressing slowly. Commentary also questioned how much of Q3’s growth came from sustainable prescription volume, noting contributions from under-65 depression prescriptions and one-time or gross-to-net factors. Those concerns may temper the headline earnings beat. Auvelity 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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