Investors Purchase Large Volume of Call Options on Compass Pathways (NASDAQ:CMPS)

Key Points

• Investors bought an unusually large volume of calls—5,436 call options (about 77% above normal)—as CMPS surged $2.72 to $9.38 on heavy trading of 13.58 million shares versus an average of ~2.94 million.
• Wall Street sentiment is broadly positive with a consensus rating of “Moderate Buy” and an average price target of $21.63, while several institutional investors adjusted stakes in the clinical-stage psilocybin developer that recently missed EPS estimates (‑$1.00 vs. ‑$0.41).

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS - Get Free Report) saw unusually large options trading activity on Monday. Stock traders purchased 5,436 call options on the company. This represents an increase of approximately 77% compared to the typical volume of 3,069 call options.

Hedge Funds Weigh In On Compass Pathways

Several institutional investors have recently added to or reduced their stakes in CMPS. Corient Private Wealth LLC lifted its holdings in Compass Pathways by 3.2% during the 4th quarter. Corient Private Wealth LLC now owns 38,438 shares of the company's stock worth $265,000 after buying an additional 1,200 shares in the last quarter. CWM LLC increased its stake in shares of Compass Pathways by 19.2% in the 3rd quarter. CWM LLC now owns 15,650 shares of the company's stock valued at $90,000 after buying an additional 2,525 shares during the period. Conservest Capital Advisors Inc. raised its position in shares of Compass Pathways by 24.6% during the fourth quarter. Conservest Capital Advisors Inc. now owns 25,363 shares of the company's stock worth $175,000 after acquiring an additional 5,000 shares during the last quarter. Persistent Asset Partners Ltd acquired a new position in shares of Compass Pathways during the fourth quarter valued at $38,000. Finally, Raymond James Financial Inc. lifted its stake in shares of Compass Pathways by 82.7% during the third quarter. Raymond James Financial Inc. now owns 13,763 shares of the company's stock valued at $79,000 after acquiring an additional 6,228 shares during the period. 46.19% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on CMPS shares. Lifesci Capital upgraded shares of Compass Pathways to a "strong-buy" rating in a research note on Thursday, February 12th. Compass Point set a $15.00 price target on shares of Compass Pathways in a research note on Thursday, February 12th. Royal Bank Of Canada increased their price target on shares of Compass Pathways from $21.00 to $22.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 18th. Canaccord Genuity Group dropped their price target on shares of Compass Pathways from $20.00 to $18.00 and set a "buy" rating on the stock in a research note on Thursday, March 26th. Finally, Morgan Stanley decreased their price objective on shares of Compass Pathways from $18.00 to $16.00 and set an "overweight" rating for the company in a report on Wednesday, March 25th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $21.63.

Compass Pathways Price Performance

Shares of Compass Pathways stock traded up $2.72 during trading on Monday, hitting $9.38. 13,580,094 shares of the company's stock traded hands, compared to its average volume of 2,935,838. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.77 and a quick ratio of 0.77. The firm's fifty day moving average price is $6.37 and its 200 day moving average price is $6.36. Compass Pathways has a twelve month low of $2.25 and a twelve month high of $10.21. The company has a market cap of $900.83 million, a PE ratio of -3.04 and a beta of 2.01.

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

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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