BTIG Research Reaffirms "Buy" Rating for Compass Pathways (NASDAQ:CMPS)

Key Points

• BTIG reiterated a "Buy" rating on Compass Pathways with a $14.00 price target, implying about a 51.7% upside from the prior close.
• The stock surged about 38.6% to $9.23 on heavy volume (19.7M vs. a 3.0M average) even though the company reported a quarterly EPS loss of ($1.00), missing estimates by $0.59.
• Analyst sentiment is mixed but positive overall—MarketBeat shows a consensus of "Moderate Buy" with an average target of $21.63—and institutional ownership is substantial (46.2%) with several firms recently increasing their stakes.

Compass Pathways (NASDAQ:CMPS - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at BTIG Research in a research report issued to clients and investors on Monday,Benzinga reports. They presently have a $14.00 price objective on the stock. BTIG Research's target price would suggest a potential upside of 51.66% from the stock's previous close.

A number of other equities analysts have also recently commented on the company. Lifesci Capital upgraded Compass Pathways to a "strong-buy" rating in a report on Thursday, February 12th. HC Wainwright upped their price objective on Compass Pathways from $40.00 to $70.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Compass Pathways in a research note on Wednesday, January 21st. Canaccord Genuity Group decreased their target price on Compass Pathways from $20.00 to $18.00 and set a "buy" rating on the stock in a report on Thursday, March 26th. Finally, Morgan Stanley dropped their price target on Compass Pathways from $18.00 to $16.00 and set an "overweight" rating on the stock in a research note on Wednesday, March 25th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $21.63.

Compass Pathways Stock Up 38.6%

Shares of CMPS traded up $2.57 during midday trading on Monday, hitting $9.23. The stock had a trading volume of 19,712,372 shares, compared to its average volume of 3,013,708. The firm has a market cap of $886.33 million, a price-to-earnings ratio of -2.99 and a beta of 2.01. The company has a 50 day simple moving average of $6.37 and a two-hundred day simple moving average of $6.36. Compass Pathways has a twelve month low of $2.25 and a twelve month high of $10.21. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.77 and a quick ratio of 0.77.

Compass Pathways (NASDAQ:CMPS - Get Free Report) last announced its earnings results on Tuesday, March 24th. The company reported ($1.00) EPS for the quarter, missing the consensus estimate of ($0.41) by ($0.59). On average, analysts anticipate that Compass Pathways will post -2.33 EPS for the current year.

Institutional Investors Weigh In On Compass Pathways

A number of institutional investors have recently made changes to their positions in the company. Royal Bank of Canada boosted its stake in Compass Pathways by 49.8% in the 1st quarter. Royal Bank of Canada now owns 89,446 shares of the company's stock valued at $256,000 after purchasing an additional 29,733 shares during the period. Acadian Asset Management LLC lifted its holdings in shares of Compass Pathways by 42.0% during the first quarter. Acadian Asset Management LLC now owns 240,591 shares of the company's stock worth $686,000 after buying an additional 71,112 shares in the last quarter. Nantahala Capital Management LLC lifted its holdings in shares of Compass Pathways by 47.7% during the second quarter. Nantahala Capital Management LLC now owns 4,179,930 shares of the company's stock worth $11,704,000 after buying an additional 1,350,698 shares in the last quarter. Balyasny Asset Management L.P. boosted its position in shares of Compass Pathways by 38.0% in the second quarter. Balyasny Asset Management L.P. now owns 854,840 shares of the company's stock valued at $2,394,000 after acquiring an additional 235,345 shares during the period. Finally, Northeast Financial Consultants Inc acquired a new position in shares of Compass Pathways in the second quarter valued at about $59,000. Institutional investors own 46.19% of the company's stock.

About Compass Pathways

Compass Pathways NASDAQ: CMPS is a clinical-stage biotechnology company focused on the development and commercialization of psilocybin therapy for mental health disorders. Founded in 2016 and headquartered in London with additional offices in the United States, Compass Pathways is pioneering the use of synthetic psilocybin combined with psychotherapy to address treatment-resistant depression. The company’s flagship program is a Phase IIb clinical trial evaluating COMP360, its proprietary psilocybin formulation, which has received Breakthrough Therapy designation from the U.S.

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