Bright Minds Biosciences Inc. (NASDAQ:DRUG) Sees Significant Growth in Short Interest

Key Points

• Short interest jumped 32.9% to 703,646 shares as of March 31, representing 12.6% of the company's shares sold short and a days-to-cover ratio of about 4.6, signaling increased bearish/volatile positioning.
• Institutional investors own about 40.52% of Bright Minds, with major funds like Janus Henderson, Vivo Capital and Balyasny Asset Management materially increasing their stakes in recent quarters.
• Analysts are broadly positive—six Buys and one Hold—with a consensus rating of “Moderate Buy” and an average price target of $128.60, alongside recent upbeat upgrades and raised targets from firms including HC Wainwright and Jefferies.

Bright Minds Biosciences Inc. (NASDAQ:DRUG - Get Free Report) was the recipient of a large increase in short interest during the month of March. As of March 31st, there was short interest totaling 703,646 shares, an increase of 32.9% from the March 15th total of 529,485 shares. Currently, 12.6% of the shares of the company are sold short. Based on an average daily volume of 154,394 shares, the days-to-cover ratio is presently 4.6 days.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Janus Henderson Group PLC boosted its stake in shares of Bright Minds Biosciences by 0.9% in the 4th quarter. Janus Henderson Group PLC now owns 1,155,995 shares of the company's stock valued at $90,832,000 after purchasing an additional 10,335 shares during the last quarter. Vivo Capital LLC boosted its stake in shares of Bright Minds Biosciences by 99.4% in the 3rd quarter. Vivo Capital LLC now owns 501,617 shares of the company's stock valued at $30,428,000 after purchasing an additional 250,045 shares during the last quarter. Braidwell LP boosted its stake in shares of Bright Minds Biosciences by 6.8% in the 4th quarter. Braidwell LP now owns 324,358 shares of the company's stock valued at $25,313,000 after purchasing an additional 20,673 shares during the last quarter. MPM Bioimpact LLC bought a new position in shares of Bright Minds Biosciences in the 4th quarter valued at about $17,961,000. Finally, Balyasny Asset Management L.P. boosted its stake in shares of Bright Minds Biosciences by 20.6% in the 4th quarter. Balyasny Asset Management L.P. now owns 225,412 shares of the company's stock valued at $17,591,000 after purchasing an additional 38,490 shares during the last quarter. Institutional investors own 40.52% of the company's stock.

Bright Minds Biosciences Stock Performance

Shares of NASDAQ DRUG traded up $0.48 during mid-day trading on Wednesday, hitting $89.62. 107,486 shares of the stock were exchanged, compared to its average volume of 170,412. The company has a market cap of $872.00 million, a P/E ratio of -46.44 and a beta of -5.34. The stock's fifty day simple moving average is $77.85 and its two-hundred day simple moving average is $73.91. Bright Minds Biosciences has a twelve month low of $23.17 and a twelve month high of $123.75.

Bright Minds Biosciences (NASDAQ:DRUG - Get Free Report) last posted its earnings results on Thursday, February 12th. The company reported ($0.70) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.98) by $0.28. As a group, equities research analysts predict that Bright Minds Biosciences will post -1.24 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. HC Wainwright upped their target price on shares of Bright Minds Biosciences from $115.00 to $145.00 and gave the company a "buy" rating in a research note on Wednesday, March 4th. Chardan Capital reiterated a "buy" rating and set a $80.00 price target on shares of Bright Minds Biosciences in a research note on Friday, January 2nd. Jefferies Financial Group assumed coverage on shares of Bright Minds Biosciences in a report on Monday. They issued a "buy" rating and a $145.00 price target on the stock. BTIG Research restated a "buy" rating and issued a $147.00 price objective on shares of Bright Minds Biosciences in a research note on Monday, March 30th. Finally, Wall Street Zen upgraded shares of Bright Minds Biosciences from a "sell" rating to a "hold" rating in a research report on Saturday, March 21st. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Bright Minds Biosciences presently has a consensus rating of "Moderate Buy" and a consensus price target of $128.60.

About Bright Minds Biosciences

Bright Minds Biosciences Inc, trading on the NASDAQ under the symbol DRUG, is a clinical-stage biotechnology company focused on developing novel small-molecule therapeutics for mental health and neurodegenerative disorders. The company’s research leverages proprietary chemistry platforms to create serotonin-modulating and neuroprotective compounds derived from psychedelic-inspired structures. Bright Minds aims to address unmet needs in conditions such as major depressive disorder, post-traumatic stress disorder and Alzheimer’s disease through orally administered treatments.

The company’s lead candidate, BMB-101, is an oral 5-HT2A receptor-modulating compound in clinical development for mood and anxiety disorders.

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