Morgan Stanley Issues Pessimistic Forecast for Axsome Therapeutics (NASDAQ:AXSM) Stock Price

Key Points

• Morgan Stanley lowered its price target on Axsome Therapeutics to $223 from $249 and maintained an “equal weight” rating; the revised target implies about 60% upside from the prior close.
• Analyst sentiment remains broadly positive: Axsome has a “Moderate Buy” consensus rating and an average price target of $266.21, despite several firms recently trimming their targets.
• The company reported quarterly revenue of $259.69 million, up 51.9% year over year, and a loss of $0.25 per share—better than analysts’ expectations for a $0.63 loss.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) had its price objective reduced by Morgan Stanley from $249.00 to $223.00 in a report issued on Friday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price objective would indicate a potential upside of 60.13% from the company's previous close.

Other equities research analysts have also recently issued reports about the company. Piper Sandler lowered their target price on Axsome Therapeutics from $258.00 to $238.00 and set an "overweight" rating for the company in a research note on Monday, October 26th. Wells Fargo & Company reissued an "outperform" rating on shares of Axsome Therapeutics in a research note on Tuesday, November 3rd. BMO Capital Markets assumed 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 for the company. Deutsche Bank dropped their price objective on Axsome Therapeutics from $280.00 to $267.00 and set a "buy" rating for the company in a report on Tuesday, September 29th. Finally, Royal Bank Of Canada decreased their target price on Axsome Therapeutics from $295.00 to $273.00 and set an "outperform" rating for the company in a research report on Tuesday, November 3rd. One investment 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 issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $266.21.

Axsome Therapeutics Price Performance

Shares of NASDAQ AXSM traded down $5.11 during trading on Friday, reaching $139.26. The company had a trading volume of 313,672 shares, compared to its average volume of 792,511. Axsome Therapeutics has a 52 week low of $123.00 and a 52 week high of $260.19. The stock has a market cap of $7.33 billion, a PE ratio of -45.86 and a beta of 0.86. The company has a debt-to-equity ratio of 1.21, a quick ratio of 1.34 and a current ratio of 1.42. The business's 50 day moving average price is $172.78 and its 200-day moving average price is $196.98.

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, topping analysts' consensus estimates of ($0.63) by $0.38. Axsome Therapeutics had a negative net margin of 18.18% and a negative return on equity of 198.73%. The company had revenue of $259.69 million for the quarter, compared to analyst estimates of $249.19 million. During the same period in the prior year, the business earned ($0.94) earnings per share. Axsome Therapeutics's quarterly revenue was up 51.9% on a year-over-year basis. Analysts expect that Axsome Therapeutics will post -2.27 earnings per share for the current year.

Insiders Place Their Bets

In other Axsome Therapeutics news, COO Mark Jacobson sold 10,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $208.65, for a total value of $2,086,500.00. Following the completion of the transaction, the chief operating officer directly owned 10,000 shares of the company's stock, valued at approximately $2,086,500. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 20.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Axsome Therapeutics during the second quarter worth $759,695,000. First Trust Advisors LP raised its stake in shares of Axsome Therapeutics by 1,230.2% in the 1st quarter. First Trust Advisors LP now owns 577,479 shares of the company's stock valued at $97,606,000 after purchasing an additional 534,066 shares during the period. Pictet Asset Management Holding SA lifted its holdings in shares of Axsome Therapeutics by 12.9% in the third quarter. Pictet Asset Management Holding SA now owns 481,524 shares of the company's stock valued at $88,789,000 after purchasing an additional 54,997 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Axsome Therapeutics during the second quarter worth about $110,756,000. Finally, Canada Pension Plan Investment Board acquired a new position in shares of Axsome Therapeutics during the second quarter worth about $55,171,000. Institutional investors and hedge funds own 81.49% of the company's stock.

About Axsome Therapeutics

Axsome Therapeutics is a biopharmaceutical company focused on developing and commercializing treatments for central nervous system disorders. The company is headquartered in New York and is led by founder, chairman and chief executive officer Herriot Tabuteau. Its marketed products include Auvelity, an oral treatment for major depressive disorder in adults, and Sunosi, which is used to improve wakefulness in adults with excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea.

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