Traders Purchase High Volume of Put Options on Axsome Therapeutics (NASDAQ:AXSM)

Key Points

• Unusual options activity: Traders purchased 2,245 put options on Axsome Therapeutics, roughly 200% above the average daily volume of 749 contracts, signaling increased downside hedging or bearish interest.
• Analyst sentiment remains positive: Axsome has a consensus “Moderate Buy” rating and an average price target of $274.68, despite Piper Sandler lowering its target to $238.
• Shares and fundamentals showed weakness: The stock traded near $143.45, well below its 50- and 200-day moving averages, while the company reported a quarterly loss that missed analyst expectations; insiders also sold $12.6 million of stock over the past 90 days.

Axsome Therapeutics, Inc. (NASDAQ:AXSM - Get Free Report) saw some unusual options trading activity on Thursday. Traders bought 2,245 put options on the company. This is an increase of 200% compared to the average daily volume of 749 put options.

Analysts Set New Price Targets

Several equities analysts have weighed in on AXSM shares. HC Wainwright reiterated a "buy" rating on shares of Axsome Therapeutics in a research report on Friday, September 25th. UBS Group restated a "buy" rating on shares of Axsome Therapeutics in a report on Monday, August 24th. Zacks Research upgraded Axsome Therapeutics from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 18th. Piper Sandler dropped their price target on Axsome Therapeutics from $258.00 to $238.00 and set an "overweight" rating on the stock in a research report on Monday. Finally, BMO Capital Markets began coverage on Axsome Therapeutics in a research note on Monday, July 20th. They issued an "outperform" rating and a $310.00 price objective for the company. One research 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 given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $274.68.

Insider Transactions at Axsome Therapeutics

In other Axsome Therapeutics news, CEO Herriot Tabuteau sold 4,660 shares of the firm's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $213.95, for a total value of $997,007.00. Following the completion of the transaction, the chief executive officer directly owned 7,229 shares in the company, valued at $1,546,644.55. This trade represents a 39.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, COO Mark Jacobson sold 10,000 shares of Axsome Therapeutics stock in a transaction that occurred on 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 completion of the transaction, the chief operating officer directly 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 59,664 shares of company stock valued at $12,624,805 over the last ninety days. Insiders own 20.60% of the company's stock.

Institutional Trading of Axsome Therapeutics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AXSM. Hollencrest Capital Management raised its position in Axsome Therapeutics by 400.0% in the 1st quarter. Hollencrest Capital Management now owns 200 shares of the company's stock valued at $34,000 after purchasing an additional 160 shares during the last quarter. ABS Investment Management LLC acquired a new position in Axsome Therapeutics in the second quarter worth $171,339,000. ABS Direct Equity Fund LLC bought a new stake in shares of Axsome Therapeutics during the second quarter worth $60,000. Silvant Capital Management LLC bought a new stake in shares of Axsome Therapeutics during the second quarter worth $66,000. Finally, Parkside Financial Bank & Trust increased its stake in shares of Axsome Therapeutics by 505.4% in the second quarter. Parkside Financial Bank & Trust now owns 339 shares of the company's stock valued at $83,000 after buying an additional 283 shares in the last quarter. Institutional investors and hedge funds own 81.49% of the company's stock.

Axsome Therapeutics Stock Down 0.0%

NASDAQ:AXSM traded down $0.06 during trading hours on Thursday, reaching $143.45. The company's stock had a trading volume of 850,168 shares, compared to its average volume of 765,105. The company has a debt-to-equity ratio of 1.52, a current ratio of 1.43 and a quick ratio of 1.34. The company has a market cap of $7.51 billion, a price-to-earnings ratio of -38.25 and a beta of 0.86. Axsome Therapeutics has a one year low of $123.50 and a one year high of $260.19. The business's 50-day moving average is $187.53 and its 200-day moving average is $199.22.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported ($0.99) earnings per share for the quarter, missing the consensus estimate of ($0.89) by ($0.10). Axsome Therapeutics had a negative return on equity of 265.55% and a negative net margin of 24.68%. The company had revenue of $218.38 million during the quarter, compared to analyst estimates of $221.11 million. Equities research analysts predict that Axsome Therapeutics will post -2.97 EPS for the current year.

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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