Compass Pathways (NASDAQ:CMPS) Shares Down 7.3% - Should You Sell?

Key Points

• Shares fell 7.3% to about $8.58 on Wednesday, with roughly 1.96 million shares traded—about a 41% decline from average daily volume.
• Compass reported a quarterly EPS loss of ($1.00), missing estimates by $0.59 and with analysts projecting about -1.68 EPS for the year; the company is a clinical‑stage developer of psilocybin therapy (COMP360) in a Phase IIb trial with Breakthrough Therapy designation.
• Analyst sentiment is mixed but leans positive: MarketBeat shows a "Moderate Buy" consensus and a $21.63 average price target, with ratings ranging from Strong Buy to Sell across firms.

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS - Get Free Report)'s stock price was down 7.3% on Wednesday . The stock traded as low as $8.17 and last traded at $8.5780. Approximately 1,959,311 shares changed hands during trading, a decline of 41% from the average daily volume of 3,343,782 shares. The stock had previously closed at $9.25.

Analysts Set New Price Targets

Several research analysts have weighed in on CMPS shares. BTIG Research reaffirmed a "buy" rating and set a $14.00 price target on shares of Compass Pathways in a research report on Monday. Canaccord Genuity Group lowered their price target on Compass Pathways from $20.00 to $18.00 and set a "buy" rating on the stock in a research report on Thursday, March 26th. HC Wainwright boosted their price target on Compass Pathways from $40.00 to $70.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Lifesci Capital raised Compass Pathways to a "strong-buy" rating in a research report on Thursday, February 12th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Compass Pathways in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Compass Pathways currently has an average rating of "Moderate Buy" and a consensus price target of $21.63.

Compass Pathways Price Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.77 and a current ratio of 0.77. The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of -2.91 and a beta of 2.01. The business has a fifty day moving average of $6.49 and a two-hundred day moving average of $6.40.

Compass Pathways (NASDAQ:CMPS - Get Free Report) last posted its earnings results on Tuesday, March 24th. The company reported ($1.00) earnings per share for the quarter, missing analysts' consensus estimates of ($0.41) by ($0.59). As a group, research analysts predict that Compass Pathways PLC Sponsored ADR will post -1.68 EPS for the current fiscal year.

Institutional Inflows and Outflows

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

Compass Pathways Company Profile

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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