Axsome Therapeutics (NASDAQ:AXSM) Releases Quarterly Earnings Results, Beats Expectations By $0.38 EPS

Key Points

• Axsome Therapeutics beat quarterly expectations: The company reported a loss of $0.25 per share, $0.38 better than analysts’ projected $0.63 loss, while revenue reached $259.69 million versus the $249.19 million consensus estimate.
• Shares remain volatile and unprofitable: AXSM opened at $144.43, compared with a 12-month range of $123.50 to $260.19. The company posted a negative net margin of 24.68% and a negative return on equity of 265.55%.
• Analyst sentiment is broadly positive, but insiders have sold shares: The stock has a “Moderate Buy” consensus rating and an average price target of $274.68, while insiders sold approximately $12.6 million of stock over the past 90 days.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) announced its earnings results on Monday. The company reported ($0.25) earnings per share for the quarter, topping analysts' consensus estimates of ($0.63) by $0.38, FiscalAI reports. The business had revenue of $259.69 million during the quarter, compared to the consensus estimate of $249.19 million. Axsome Therapeutics had a negative net margin of 24.68% and a negative return on equity of 265.55%.

Axsome Therapeutics Stock Performance

NASDAQ AXSM opened at $144.43 on Monday. Axsome Therapeutics has a 12-month low of $123.50 and a 12-month high of $260.19. The company has a market cap of $7.57 billion, a P/E ratio of -38.51 and a beta of 0.86. The company has a fifty day simple moving average of $184.76 and a 200 day simple moving average of $198.93. The company has a current ratio of 1.43, a quick ratio of 1.34 and a debt-to-equity ratio of 1.52.

Insider Activity at Axsome Therapeutics

In related news, CEO Herriot Tabuteau sold 45,004 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $212.01, for a total transaction of $9,541,298.04. Following the transaction, the chief executive officer directly owned 7,229 shares of the company's stock, valued at $1,532,620.29. This trade represents a 86.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Mark L. Jacobson sold 10,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $208.65, for a total transaction of $2,086,500.00. Following the transaction, the chief operating officer owned 10,000 shares in the company, valued at approximately $2,086,500. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 59,664 shares of company stock worth $12,624,805. 20.60% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

AXSM has been the topic of a number of research analyst reports. Guggenheim upped their price target on shares of Axsome Therapeutics from $260.00 to $275.00 and gave the company a "buy" rating in a research report on Tuesday, August 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Axsome Therapeutics in a research note on Thursday, October 15th. Zacks Research upgraded Axsome Therapeutics from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 18th. Truist Financial raised their target price on Axsome Therapeutics from $200.00 to $285.00 and gave the stock a "buy" rating in a research note on Wednesday, September 23rd. Finally, Mizuho raised their target price on Axsome Therapeutics from $306.00 to $316.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $274.68.

About Axsome Therapeutics

Axsome Therapeutics, Inc is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system (CNS) disorders. Founded in 2012 and headquartered in New York, the company develops medicines for conditions with significant unmet medical needs, including depression, narcolepsy, excessive daytime sleepiness, and other neurological disorders.

Axsome's commercial products include Auvelity (dextromethorphan and bupropion), an oral treatment approved in the United States for major depressive disorder in adults, and Sunosi (solriamfetol), a therapy for excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea.

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