Bright Minds Biosciences (NASDAQ:DRUG) Shares Up 5% - Should You Buy?

Key Points

• Bright Minds Biosciences shares rose 5% in Friday trading, reaching as high as $79.16 after opening around $74.23, though volume was well below average.
• Analyst sentiment remains constructive, with six Buy ratings and one Hold rating; the consensus price target is $143.83, and several firms have targets in the $145 to $220 range.
• The company recently beat quarterly EPS estimates, reporting a loss of $0.80 per share versus expectations of a $0.86 loss, while insider and institutional ownership remain significant.

Bright Minds Biosciences Inc. (NASDAQ:DRUG - Get Free Report) shares traded up 5% during mid-day trading on Friday . The stock traded as high as $79.16 and last traded at $77.9060. 49,419 shares changed hands during trading, a decline of 79% from the average daily volume of 234,850 shares. The stock had previously closed at $74.23.

Wall Street Analysts Forecast Growth

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

Bright Minds Biosciences Price Performance

The firm has a fifty day moving average of $72.91 and a 200 day moving average of $78.59. The stock has a market capitalization of $753.79 million, a price-to-earnings ratio of -31.68 and a beta of -5.34.

Bright Minds Biosciences (NASDAQ:DRUG - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The company reported ($0.80) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.86) by $0.06. Research analysts predict that Bright Minds Biosciences Inc. will post -4.9 EPS for the current year.

Insider Activity

In related news, major shareholder Cormorant Asset Management, Lp sold 109,331 shares of the stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $89.50, for a total transaction of $9,785,124.50. Following the sale, the insider directly owned 950,000 shares of the company's stock, valued at approximately $85,025,000. This represents a 10.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 42.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Bright Minds Biosciences

Hedge funds have recently modified their holdings of the company. Royal Bank of Canada increased its stake in shares of Bright Minds Biosciences by 240.0% in the 4th quarter. Royal Bank of Canada now owns 527 shares of the company's stock valued at $40,000 after purchasing an additional 372 shares in the last quarter. Russell Investments Group Ltd. acquired a new stake in Bright Minds Biosciences in the third quarter valued at approximately $58,000. JPMorgan Chase & Co. increased its position in shares of Bright Minds Biosciences by 624.3% in the second quarter. JPMorgan Chase & Co. now owns 2,173 shares of the company's stock valued at $57,000 after buying an additional 1,873 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of Bright Minds Biosciences in the second quarter valued at approximately $66,000. Finally, Strs Ohio raised its stake in shares of Bright Minds Biosciences by 200.0% during the 1st quarter. Strs Ohio now owns 2,700 shares of the company's stock worth $197,000 after buying an additional 1,800 shares during the period. 40.52% of the stock is owned by hedge funds and other institutional investors.

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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