Compass Pathways (NASDAQ:CMPS) Shares Gap Up - Time to Buy?

Key Points

• Compass Pathways shares gapped up ahead of Thursday’s open, opening at $14.50 after closing at $13.31, though the stock later traded back to $13.08.
• Analyst sentiment remains constructive overall, with several recent buy ratings and a new $21 price target from Evercore; the consensus rating is Moderate Buy with a $24.15 price target.
• The company beat Q1 earnings expectations, reporting EPS of -$0.30 versus the expected -$0.45, while institutional ownership remains significant at 46.19%.

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $13.31, but opened at $14.50. Compass Pathways shares last traded at $13.08, with a volume of 2,592,055 shares.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on CMPS shares. Weiss Ratings restated a "sell (d-)" rating on shares of Compass Pathways in a research report on Monday, April 20th. Jefferies Financial Group restated a "buy" rating on shares of Compass Pathways in a report on Tuesday, July 7th. Raymond James Financial reiterated a "buy" rating on shares of Compass Pathways in a report on Friday, May 22nd. Canaccord Genuity Group boosted their price target on shares of Compass Pathways from $18.00 to $20.00 and gave the company a "buy" rating in a research report on Friday, June 26th. Finally, Evercore raised shares of Compass Pathways from an "in-line" rating to an "outperform" rating and set a $21.00 price objective for the company in a report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $24.15.

Compass Pathways Price Performance

The company has a quick ratio of 3.32, a current ratio of 3.32 and a debt-to-equity ratio of 0.15. The company has a market cap of $1.78 billion, a price-to-earnings ratio of -4.19 and a beta of 2.47. The stock's 50-day simple moving average is $12.24 and its 200 day simple moving average is $8.77.

Compass Pathways (NASDAQ:CMPS - Get Free Report) last released its quarterly earnings results on Wednesday, May 13th. The company reported ($0.30) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.45) by $0.15. On average, equities research analysts anticipate that Compass Pathways PLC Sponsored ADR will post -1.24 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of CMPS. Royal Bank of Canada lifted its stake in 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 in the last quarter. Acadian Asset Management LLC increased its stake in 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 purchasing an additional 71,112 shares during the period. Nantahala Capital Management LLC increased its stake in 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 purchasing an additional 1,350,698 shares during the period. Balyasny Asset Management L.P. lifted its position in shares of Compass Pathways by 38.0% during the second quarter. Balyasny Asset Management L.P. now owns 854,840 shares of the company's stock worth $2,394,000 after purchasing an additional 235,345 shares in the last quarter. Finally, Northeast Financial Consultants Inc purchased a new position in shares of Compass Pathways in the second quarter valued at approximately $59,000. 46.19% of the stock is currently owned by hedge funds and other institutional investors.

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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