Axsome Therapeutics (NASDAQ:AXSM) Reaches New 1-Year High - Should You Buy?

Key Points

• Axsome Therapeutics hit a new 52-week high, trading as high as $236.84 and closing near $235, as the stock continued a strong recent run.
• Wall Street remains mostly bullish on AXSM, with several analysts raising price targets; the consensus rating is “Moderate Buy” and the average target is $251.26.
• Recent earnings were mixed but showed strong growth: Axsome posted a wider-than-expected quarterly loss, but revenue came in roughly in line with forecasts and rose 57.4% year over year.

Axsome Therapeutics, Inc. (NASDAQ:AXSM - Get Free Report) reached a new 52-week high during trading on Friday . The stock traded as high as $236.84 and last traded at $235.0580, with a volume of 45363 shares. The stock had previously closed at $233.64.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on AXSM shares. Jefferies Financial Group lifted their price target on Axsome Therapeutics from $245.00 to $275.00 and gave the stock a "buy" rating in a report on Monday, May 4th. Wells Fargo & Company lifted their price target on Axsome Therapeutics from $225.00 to $255.00 and gave the stock an "overweight" rating in a report on Tuesday, May 5th. Robert W. Baird lifted their price target on Axsome Therapeutics from $241.00 to $246.00 and gave the stock an "outperform" rating in a report on Tuesday, May 5th. Mizuho boosted their price objective on shares of Axsome Therapeutics from $228.00 to $310.00 and gave the company an "outperform" rating in a report on Tuesday, May 5th. Finally, Wolfe Research began coverage on shares of Axsome Therapeutics in a report on Monday, February 23rd. They issued an "outperform" rating and a $230.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Axsome Therapeutics has a consensus rating of "Moderate Buy" and an average price target of $251.26.

Axsome Therapeutics Price Performance

The company has a debt-to-equity ratio of 2.27, a current ratio of 1.39 and a quick ratio of 1.32. The company has a market capitalization of $12.05 billion, a PE ratio of -62.71 and a beta of 0.59. The stock's 50 day simple moving average is $186.31 and its 200-day simple moving average is $171.38.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The company reported ($1.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.85) by ($0.41). The business had revenue of $191.20 million for the quarter, compared to analysts' expectations of $191.10 million. Axsome Therapeutics had a negative return on equity of 267.16% and a negative net margin of 26.59%.The company's revenue was up 57.4% compared to the same quarter last year. As a group, equities analysts forecast that Axsome Therapeutics, Inc. will post -2.14 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Ari Maizel sold 7,500 shares of the company's stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $182.42, for a total transaction of $1,368,150.00. Following the sale, the insider directly owned 7,500 shares in the company, valued at approximately $1,368,150. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark Coleman sold 25,000 shares of the company's stock in a transaction that occurred 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 sale, the director owned 47,140 shares in the company, valued at $7,594,725.40. The trade was a 34.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 72,628 shares of company stock worth $12,205,662. Company insiders own 20.60% of the company's stock.

Institutional Trading of Axsome Therapeutics

A number of large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of Axsome Therapeutics by 6.0% during the third quarter. Vanguard Group Inc. now owns 4,180,646 shares of the company's stock worth $507,739,000 after buying an additional 235,626 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of Axsome Therapeutics by 45.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,509,870 shares of the company's stock worth $275,763,000 after buying an additional 472,422 shares during the period. Wellington Management Group LLP increased its stake in shares of Axsome Therapeutics by 84.1% during the third quarter. Wellington Management Group LLP now owns 1,334,560 shares of the company's stock worth $162,082,000 after buying an additional 609,516 shares during the period. Invesco Ltd. increased its stake in shares of Axsome Therapeutics by 28.6% during the fourth quarter. Invesco Ltd. now owns 1,273,494 shares of the company's stock worth $232,591,000 after buying an additional 282,937 shares during the period. Finally, Geode Capital Management LLC increased its stake in shares of Axsome Therapeutics by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 1,010,249 shares of the company's stock worth $184,544,000 after buying an additional 12,549 shares during the period. 81.49% of the stock is currently owned by hedge funds and other institutional investors.

About Axsome Therapeutics

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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