Bright Minds Biosciences (NASDAQ:DRUG) Shares Down 7.7% - What's Next?

Key Points

• Bright Minds Biosciences (NASDAQ:DRUG) fell 7.7% on Friday, trading as low as $71.61 after closing at $78.20, with volume of 58,149 shares well below its average.
• Analysts remain broadly bullish despite the drop: six rate the stock a Buy, one a Hold, and the consensus price target is $143.83, with several firms recently reiterating or initiating Buy ratings.
• The company recently reported a quarterly loss of ($0.80) per share, beating estimates, while major shareholder Cormorant Asset Management sold 109,331 shares in April and still owns a large stake.

Shares of Bright Minds Biosciences Inc. (NASDAQ:DRUG - Get Free Report) dropped 7.7% during trading on Friday . The company traded as low as $71.61 and last traded at $72.1980. 58,149 shares traded hands during trading, a decline of 75% from the average daily volume of 231,766 shares. The stock had previously closed at $78.20.

Analyst Ratings Changes

Several equities research analysts recently commented on DRUG shares. Jefferies Financial Group initiated coverage on Bright Minds Biosciences in a report on Monday, April 13th. They set a "buy" rating and a $145.00 target price on the stock. HC Wainwright reiterated a "buy" rating and set a $145.00 price target on shares of Bright Minds Biosciences in a research report on Monday, June 1st. Wall Street Zen upgraded Bright Minds Biosciences from a "strong sell" rating to a "sell" rating in a report on Saturday, July 4th. Piper Sandler reaffirmed an "overweight" rating and set a $220.00 target price (up from $190.00) on shares of Bright Minds Biosciences in a report on Wednesday, May 20th. Finally, BTIG Research reiterated a "buy" rating and issued a $147.00 price target on shares of Bright Minds Biosciences in a research report on Monday, March 30th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $143.83.

Bright Minds Biosciences Trading Down 6.9%

The stock has a fifty day moving average of $74.18 and a 200-day moving average of $78.88. The firm has a market capitalization of $708.28 million, a price-to-earnings ratio of -29.74 and a beta of -5.34.

Bright Minds Biosciences (NASDAQ:DRUG - Get Free Report) last announced its earnings results on Wednesday, May 20th. The company reported ($0.80) EPS for the quarter, beating the consensus estimate of ($0.86) by $0.06. As a group, equities research analysts forecast that Bright Minds Biosciences Inc. will post -4.9 earnings per share for the current fiscal year.

Insider Transactions at Bright Minds Biosciences

In other news, major shareholder Cormorant Asset Management, Lp sold 109,331 shares of the stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $89.50, for a total value of $9,785,124.50. Following the completion of the sale, the insider directly owned 950,000 shares of the company's stock, valued at $85,025,000. This represents a 10.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 42.66% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Janus Henderson Group PLC raised its position in Bright Minds Biosciences by 11.1% during the first quarter. Janus Henderson Group PLC now owns 1,284,324 shares of the company's stock valued at $93,518,000 after acquiring an additional 128,329 shares in the last quarter. Vivo Capital LLC grew its position in Bright Minds Biosciences by 11.1% in the first quarter. Vivo Capital LLC now owns 557,172 shares of the company's stock worth $40,657,000 after acquiring an additional 55,555 shares in the last quarter. Braidwell LP increased its stake in shares of Bright Minds Biosciences by 6.8% during the 4th quarter. Braidwell LP now owns 324,358 shares of the company's stock worth $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 during the 4th quarter valued at $17,961,000. Finally, Balyasny Asset Management L.P. raised its holdings in shares of Bright Minds Biosciences by 20.6% during 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 in the last quarter. Hedge funds and other institutional investors own 40.52% of the company's stock.

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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