Axsome Therapeutics (NASDAQ:AXSM) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised its price target on Axsome to $242 (from $217) while maintaining an "equal weight" rating, and the brokerage consensus sits at a Moderate Buy with a $251.89 average target.
• Axsome's Q1 delivered revenue of $191.2 million (up 57% y/y) but an EPS loss of $1.26 that missed estimates, leaving the company with negative margins despite strong top-line growth.
• Pipeline and regulatory progress — notably approval of AUVELITY for agitation in Alzheimer's, an NDA submission for AXS‑12, and the addition of AXS‑20 — supports analysts' bullish outlooks and potential longer-term revenue upside.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) had its price target boosted by equities researchers at Morgan Stanley from $217.00 to $242.00 in a research report issued on Tuesday, Marketbeat.com reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 6.51% from the company's previous close.

Several other equities research analysts have also commented on AXSM. Leerink Partners upped their price objective on Axsome Therapeutics from $150.00 to $205.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 28th. Truist Financial upgraded Axsome Therapeutics to a "strong-buy" rating in a research report on Wednesday, March 25th. Needham & Company LLC set a $267.00 price objective on Axsome Therapeutics and gave the stock a "buy" rating in a research report on Tuesday. Jefferies Financial Group upped their price objective on Axsome Therapeutics from $245.00 to $275.00 and gave the stock a "buy" rating in a research report on Monday. Finally, Robert W. Baird upped their price objective on Axsome Therapeutics from $241.00 to $246.00 and gave the stock an "outperform" rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $251.89.

Axsome Therapeutics Stock Performance

NASDAQ AXSM traded up $3.51 during trading hours on Tuesday, reaching $227.21. The stock had a trading volume of 357,508 shares, compared to its average volume of 699,103. The stock has a fifty day moving average of $170.95 and a 200 day moving average of $162.68. The stock has a market cap of $11.69 billion, a P/E ratio of -61.57 and a beta of 0.59. Axsome Therapeutics has a 52-week low of $96.09 and a 52-week high of $234.29. The company has a debt-to-equity ratio of 1.38, a quick ratio of 1.48 and a current ratio of 1.55.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) last issued its earnings results on Monday, May 4th. The company reported ($1.26) EPS for the quarter, missing analysts' consensus estimates of ($0.85) by ($0.41). The firm had revenue of $191.20 million during the quarter, compared to analysts' expectations of $191.10 million. Axsome Therapeutics had a negative net margin of 28.69% and a negative return on equity of 232.61%. The company's quarterly revenue was up 57.4% compared to the same quarter last year. Sell-side analysts predict that Axsome Therapeutics will post -1.06 earnings per share for the current year.

Insider Activity

In other news, COO Mark L. Jacobson sold 35,378 shares of the stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $161.88, for a total transaction of $5,726,990.64. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Mark Coleman sold 25,000 shares of the stock in a transaction that occurred on Thursday, February 26th. The shares were sold at an average price of $161.11, for a total value of $4,027,750.00. Following the transaction, the director owned 47,140 shares in the company, valued at $7,594,725.40. This trade represents a 34.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 67,878 shares of company stock worth $11,122,891 in the last quarter. Corporate insiders own 22.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of Axsome Therapeutics by 6.0% during the 3rd quarter. Vanguard Group Inc. now owns 4,180,646 shares of the company's stock valued at $507,739,000 after buying an additional 235,626 shares in the last quarter. Franklin Street Advisors Inc. NC acquired a new position in Axsome Therapeutics in the 4th quarter valued at $1,826,000. Aberdeen Group plc raised its stake in Axsome Therapeutics by 15.5% in the 3rd quarter. Aberdeen Group plc now owns 94,648 shares of the company's stock valued at $11,495,000 after purchasing an additional 12,732 shares during the last quarter. TD Asset Management Inc raised its stake in Axsome Therapeutics by 107.7% in the 3rd quarter. TD Asset Management Inc now owns 44,192 shares of the company's stock valued at $5,367,000 after purchasing an additional 22,914 shares during the last quarter. Finally, Pictet Asset Management Holding SA raised its stake in Axsome Therapeutics by 20.4% in the 4th quarter. Pictet Asset Management Holding SA now owns 436,063 shares of the company's stock valued at $79,643,000 after purchasing an additional 73,925 shares during the last quarter. Hedge funds and other institutional investors 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: Large analyst upgrade: Mizuho raised its price target to $310 and kept an "outperform" rating — the biggest upside among recent broker moves and a key driver of bullish sentiment. Mizuho PT Raise
• Positive Sentiment: Wells Fargo lifted its target to $255 and placed AXSM at "overweight," adding institutional validation to the rally. Wells Fargo PT Raise
• Positive Sentiment: Robert W. Baird raised its target to $246 and reiterated an "outperform" rating, providing further analyst support. Baird PT Raise (Benzinga) Baird PT Raise (The Fly)
• Positive Sentiment: Pipeline/regulatory progress and product updates highlighted in the company release: AUVELITY approved for agitation associated with dementia due to Alzheimer's disease; NDA submitted for AXS‑12 (cataplexy in narcolepsy); AXS‑20 added to the pipeline — these items support longer‑term revenue upside. Company Business Update & Q1 Release
• Neutral Sentiment: Investor access: Axsome will participate in several investor conferences (BofA Heath Care Conference, fireside chat, etc.), which may increase visibility and liquidity but are informational in nature. Investor Conferences
• Neutral Sentiment: Coverage consensus: Brokerages show a "Moderate Buy" consensus, reflecting generally favorable analyst sentiment that underpins recent upgrades. Consensus Coverage
• Negative Sentiment: Q1 results were mixed: revenue of $191.2M (up 57% y/y) roughly met estimates, but EPS missed materially (loss of $1.26 vs. est. -$0.85). Management provided growth commentary, yet some analysts noted sequential sales declines for Auvelity and Sunosi, tempering near‑term expectations. Q1 Results & Transcript
• Negative Sentiment: Critical analyst take: a Seeking Alpha review flagged that management's peak revenue targets may be ambitious given current product dynamics and competitive pressures — a cautionary note for valuation. Earnings Review (Seeking Alpha)

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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