Compass Pathways (NASDAQ:CMPS) Price Target Cut to $10.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo cut Compass Pathways’ price target from $13 to $10 and maintained an Equal Weight rating; the new target implied 20.35% upside from the prior close.
• Analyst views remain mixed, though MarketBeat’s consensus is Moderate Buy with an average target of $23.14. Recent targets ranged from $18 at Morgan Stanley to $65 at HC Wainwright.
• Compass reported a quarterly loss of $0.31 per share, narrower than the $0.39 loss analysts expected, and said it expects to submit its COMP360 drug application within two weeks.

Compass Pathways (NASDAQ:CMPS - Get Free Report) had its price target lowered by equities researchers at Wells Fargo & Company from $13.00 to $10.00 in a research report issued on Wednesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential upside of 20.35% from the company's previous close.

A number of other research firms have also recently commented on CMPS. Morgan Stanley raised their price target on Compass Pathways from $17.00 to $18.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. B. Riley Financial upped their price objective on Compass Pathways from $17.00 to $22.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Wall Street Zen lowered Compass Pathways from a "sell" rating to a "strong sell" rating in a research note on Saturday. HC Wainwright decreased their target price on Compass Pathways from $70.00 to $65.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Finally, BTIG Research reissued a "buy" rating and set a $25.00 target price on shares of Compass Pathways in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $23.14.

Compass Pathways Price Performance

Shares of NASDAQ CMPS traded down $0.28 during midday trading on Wednesday, reaching $8.31. The stock had a trading volume of 1,625,511 shares, compared to its average volume of 3,487,739. The company has a market capitalization of $1.15 billion, a price-to-earnings ratio of -1.81 and a beta of 2.43. Compass Pathways has a 12-month low of $4.88 and a 12-month high of $15.87. The stock has a 50-day moving average of $12.70 and a 200-day moving average of $10.39. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.30 and a current ratio of 1.30.

Compass Pathways (NASDAQ:CMPS - Get Free Report) last released its earnings results on Tuesday, November 3rd. The company reported ($0.31) earnings per share for the quarter, beating analysts' consensus estimates of ($0.39) by $0.08. As a group, research analysts anticipate that Compass Pathways will post -1.26 EPS for the current fiscal year.

Institutional Trading of Compass Pathways

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Candriam S.C.A. increased its holdings in shares of Compass Pathways by 18.6% in the third quarter. Candriam S.C.A. now owns 1,510,695 shares of the company's stock worth $18,862,000 after purchasing an additional 236,417 shares during the last quarter. Alps Advisors Inc. boosted its stake in Compass Pathways by 34.4% during the third quarter. Alps Advisors Inc. now owns 183,458 shares of the company's stock valued at $2,282,000 after buying an additional 46,996 shares during the last quarter. CenterBook Partners LP boosted its stake in Compass Pathways by 454.1% during the third quarter. CenterBook Partners LP now owns 695,943 shares of the company's stock valued at $8,658,000 after buying an additional 570,349 shares during the last quarter. Pekin Hardy Strauss Inc. bought a new position in Compass Pathways during the third quarter valued at approximately $792,000. Finally, Commonwealth Equity Services LLC grew its holdings in Compass Pathways by 81.0% during the 3rd quarter. Commonwealth Equity Services LLC now owns 23,482 shares of the company's stock valued at $292,000 after buying an additional 10,510 shares in the last quarter. 46.19% of the stock is currently owned by institutional investors.

Key Compass Pathways News

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

• Positive Sentiment: Compass reported a third-quarter loss of $0.31 per share, narrower than analysts’ $0.39 loss estimate. The company also said it expects to complete its COMP360 New Drug Application submission within two weeks and outlined a potential 30-to-60-day FDA review target. Earnings report FDA timeline report
• Positive Sentiment: A survey cited in coverage found that 90% of interventional psychiatrists surveyed would be willing to prescribe COMP360, suggesting potential clinician interest if the treatment is approved. Long-term investor takeaways
• Positive Sentiment: Analyst support provided another favorable signal: BTIG reaffirmed its Buy rating with a $25 price target, Oppenheimer reiterated Outperform, and Jefferies said Compass’ clinical data could support pricing power. BTIG rating Oppenheimer rating
• Negative Sentiment: Competition remains a key risk. A rival’s NDA submission had recently pressured CMPS, contributing to a selloff before the earnings-related rebound. Stifel described the Usona situation as “extremely atypical,” but the competitive implications remain uncertain. Stock rebound and competition report Stifel commentary

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.

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