Axsome Therapeutics (NASDAQ:AXSM) Posts Earnings Results, Misses Expectations By $0.41 EPS

Key Points

• Missed earnings: Axsome reported quarterly EPS of ($1.26) versus consensus ($0.85), missing by $0.41, with revenue essentially in line at $191.2M and negative profitability metrics (ROE -232.61%, net margin -28.69%).
• FDA approval boosts commercial outlook: The FDA approved AUVELITY for agitation associated with dementia due to Alzheimer’s — a first‑in‑class approval that expands Axsome’s Alzheimer’s franchise and prompted analyst support such as Needham raising its price target to $255.
• Mixed market signals: AXSM has a $10.62B market cap and a consensus target of $222.18 amid mostly Buy ratings, but insiders sold roughly 67,878 shares (~$11.1M) in the last 90 days while still holding 20.6% ownership.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) released its quarterly earnings results on Monday. The company reported ($1.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.85) by ($0.41), FiscalAI reports. Axsome Therapeutics had a negative return on equity of 232.61% and a negative net margin of 28.69%.The company had revenue of $191.20 million during the quarter, compared to the consensus estimate of $191.22 million.

Axsome Therapeutics Price Performance

AXSM stock opened at $206.53 on Monday. The firm has a 50 day moving average price of $170.95 and a 200-day moving average price of $162.68. Axsome Therapeutics has a 52-week low of $96.09 and a 52-week high of $217.00. The firm has a market capitalization of $10.62 billion, a price-to-earnings ratio of -55.97 and a beta of 0.59. The company has a debt-to-equity ratio of 1.38, a quick ratio of 1.48 and a current ratio of 1.55.

Trending Headlines about Axsome Therapeutics

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

• Positive Sentiment: FDA approved AUVELITY (dextromethorphan HBr and bupropion HCl) to treat agitation associated with dementia due to Alzheimer’s — a first-in-class approval that creates a new commercial opportunity and expands Axsome’s Alzheimer’s franchise. US FDA approves Axsome's drug for Alzheimer's-related agitation
• Positive Sentiment: Company press release confirms the FDA approval and outlines AUVELITY’s novel NMDA and sigma-1 receptor mechanism; this is the basis for near-term commercialization planning and upcoming investor outreach. Axsome Therapeutics Announces FDA Approval of AUVELITY
• Positive Sentiment: Needham & Company raised its price target from $225 to $255 and initiated/maintained a Buy rating, implying ~23.5% upside from the referenced price — a supportive analyst view that can attract investor interest. Needham raises price target on Axsome
• Neutral Sentiment: Axsome hosted a virtual investor event and conference call to discuss the FDA approval and provide expert commentary — useful for details on label, launch timing and commercial strategy but not immediately transformative by itself. Axsome Hosts AUVELITY FDA Approval Investor Event
• Neutral Sentiment: Trading in AXSM was temporarily halted ahead of the announcement (news pending) — a procedural sign of material news flow but not an indicator of direction by itself. Trading halt around AXSM news

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Oppenheimer reissued an "outperform" rating and issued a $250.00 target price on shares of Axsome Therapeutics in a research report on Friday. Robert W. Baird set a $209.00 price target on Axsome Therapeutics in a research report on Tuesday, January 13th. TD Cowen reaffirmed a "buy" rating on shares of Axsome Therapeutics in a research note on Friday. Piper Sandler increased their price objective on Axsome Therapeutics from $148.00 to $223.00 and gave the stock an "overweight" rating in a report on Friday, January 16th. Finally, Guggenheim raised their price objective on Axsome Therapeutics from $220.00 to $245.00 and gave the company a "buy" rating in a research report on Wednesday, March 25th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Axsome Therapeutics presently has a consensus rating of "Moderate Buy" and a consensus target price of $222.18.

Insider Buying and Selling

In other Axsome Therapeutics news, Director Mark Coleman sold 25,000 shares of Axsome Therapeutics stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $161.11, for a total transaction of $4,027,750.00. Following the completion of the transaction, the director owned 47,140 shares in the company, valued at approximately $7,594,725.40. The trade was a 34.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Mark L. Jacobson sold 35,378 shares of the business's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $161.88, for a total value of $5,726,990.64. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 67,878 shares of company stock worth $11,122,891 in the last 90 days. Insiders own 20.60% of the company's stock.

Hedge Funds Weigh In On Axsome Therapeutics

Several large investors have recently modified their holdings of AXSM. Kemnay Advisory Services Inc. purchased a new stake in Axsome Therapeutics during the 4th quarter valued at about $31,000. Ameriflex Group Inc. bought a new stake in Axsome Therapeutics during the 4th quarter valued at about $37,000. Advisory Services Network LLC purchased a new position in Axsome Therapeutics in the third quarter worth about $40,000. Johnson Financial Group Inc. purchased a new position in Axsome Therapeutics in the third quarter worth about $61,000. Finally, Strive Financial Group LLC bought a new position in shares of Axsome Therapeutics in the fourth quarter worth approximately $62,000. Hedge funds and other institutional investors own 81.49% of the company's stock.

Axsome Therapeutics Company Profile

Axsome Therapeutics, Inc is a clinical-stage biopharmaceutical company dedicated to developing novel therapies for central nervous system (CNS) disorders. The company focuses on small-molecule drugs designed to address unmet medical needs in areas such as depression, migraine, narcolepsy and fibromyalgia. Axsome employs a precision medicine approach, leveraging pharmacologic innovation to target underlying mechanisms of disease and improve patient outcomes.

Axsome's pipeline includes several late-stage and approved product candidates.

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