Mizuho Issues Pessimistic Forecast for Axsome Therapeutics (NASDAQ:AXSM) Stock Price

Key Points

• Mizuho lowered Axsome Therapeutics’ price target from $310 to $306 but maintained an “outperform” rating, implying roughly 40% upside from the stock’s $218.42 price. The broader analyst consensus remains “Moderate Buy,” with an average target of $261.29.
• AXSM shares fell 6.9% in Friday trading. The company reported a quarterly loss of $1.26 per share, missing expectations by $0.41, although revenue increased 57.4% year over year to $191.2 million.
• Insiders sold 155,852 shares worth approximately $37.2 million over the past quarter, including a substantial sale by CEO Herriot Tabuteau. Institutional investors continue to hold a significant 81.49% of the company’s shares.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) had its price target decreased by stock analysts at Mizuho from $310.00 to $306.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Mizuho's price target would suggest a potential upside of 40.10% from the company's current price.

A number of other equities analysts also recently issued reports on the stock. Needham & Company LLC lifted their price objective on shares of Axsome Therapeutics from $225.00 to $255.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Wells Fargo & Company increased their target price on shares of Axsome Therapeutics from $225.00 to $255.00 and gave the company an "overweight" rating in a report on Tuesday, May 5th. Robert W. Baird raised their price target on shares of Axsome Therapeutics from $241.00 to $246.00 and gave the company an "outperform" rating in a research report on Tuesday, May 5th. Royal Bank Of Canada boosted their price target on shares of Axsome Therapeutics from $302.00 to $304.00 and gave the stock an "outperform" rating in a report on Tuesday, July 7th. Finally, Morgan Stanley raised shares of Axsome Therapeutics from a "reduce" rating to an "overweight" rating in a research report on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Axsome Therapeutics currently has an average rating of "Moderate Buy" and an average price target of $261.29.

Axsome Therapeutics Stock Down 6.9%

AXSM traded down $16.22 during midday trading on Friday, reaching $218.42. 410,416 shares of the company were exchanged, compared to its average volume of 765,786. The company has a market cap of $11.24 billion, a price-to-earnings ratio of -58.79 and a beta of 0.60. Axsome Therapeutics has a one year low of $96.09 and a one year high of $260.19. The company's fifty day moving average price is $239.57 and its 200 day moving average price is $202.60. The company has a debt-to-equity ratio of 2.27, a quick ratio of 1.32 and a current ratio of 1.39.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) last posted its earnings results on Monday, May 4th. The company reported ($1.26) earnings per share for the quarter, missing analysts' consensus estimates of ($0.85) by ($0.41). The company had revenue of $191.20 million during the quarter, compared to the consensus estimate of $191.10 million. Axsome Therapeutics had a negative net margin of 26.59% and a negative return on equity of 267.16%. The business's revenue was up 57.4% compared to the same quarter last year. As a group, analysts expect that Axsome Therapeutics will post -2.45 EPS for the current year.

Insider Activity

In related news, Director Susan Mahony sold 300 shares of the firm's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $237.21, for a total transaction of $71,163.00. Following the completion of the sale, the director owned 1,129 shares in the company, valued at approximately $267,810.09. This trade represents a 20.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Herriot Tabuteau sold 49,666 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $240.25, for a total transaction of $11,932,256.50. Following the sale, the chief executive officer owned 7,229 shares of the company's stock, valued at $1,736,767.25. This trade represents a 87.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 155,852 shares of company stock worth $37,230,112. 20.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AXSM. Price T Rowe Associates Inc. MD grew its stake in shares of Axsome Therapeutics by 45.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,509,870 shares of the company's stock worth $275,763,000 after acquiring an additional 472,422 shares during the period. Wellington Management Group LLP lifted its holdings in Axsome Therapeutics by 84.1% during the third quarter. Wellington Management Group LLP now owns 1,334,560 shares of the company's stock valued at $162,082,000 after purchasing an additional 609,516 shares during the last quarter. Invesco Ltd. lifted its holdings in Axsome Therapeutics by 28.6% during the fourth quarter. Invesco Ltd. now owns 1,273,494 shares of the company's stock valued at $232,591,000 after purchasing an additional 282,937 shares during the last quarter. Geode Capital Management LLC boosted its position in Axsome Therapeutics by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 1,010,249 shares of the company's stock worth $184,544,000 after purchasing an additional 12,549 shares during the period. Finally, State Street Corp boosted its position in Axsome Therapeutics by 5.8% during the second quarter. State Street Corp now owns 958,503 shares of the company's stock worth $100,058,000 after purchasing an additional 52,483 shares during the period. 81.49% of the stock is currently owned by hedge funds and other institutional investors.

Axsome Therapeutics Company Profile

Axsome Therapeutics, Inc is a clinical-stage biopharmaceutical company dedicated to developing novel therapies for central nervous system (CNS) disorders. The company focuses on small-molecule drugs designed to address unmet medical needs in areas such as depression, migraine, narcolepsy and fibromyalgia. Axsome employs a precision medicine approach, leveraging pharmacologic innovation to target underlying mechanisms of disease and improve patient outcomes.

Axsome's pipeline includes several late-stage and approved product candidates.

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