Axsome Therapeutics (NASDAQ:AXSM) Trading Up 7% - Should You Buy?

Key Points

• Axsome shares rose 7% to about $225.92, trading above both their 50-day and 200-day moving averages. The company has an $11.65 billion market capitalization but remains unprofitable, with a negative P/E ratio and analysts expecting a full-year loss.
• Wall Street’s consensus rating is “Moderate Buy”, with an average price target of $267.60. Recent targets range from $251 to $316, although the analyst group includes two Hold ratings and one Sell rating.
• Axsome missed quarterly expectations, reporting an adjusted loss of $0.99 per share versus the $0.89 expected and revenue of $218.38 million versus $221.11 million forecast. Insiders sold roughly $24.6 million of stock during the last quarter, while institutional investors own 81.49% of shares.

Shares of Axsome Therapeutics, Inc. (NASDAQ:AXSM - Get Free Report) traded up 7% during trading on Friday . The company traded as high as $229.62 and last traded at $225.9180. Approximately 213,454 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 742,997 shares. The stock had previously closed at $211.12.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on AXSM shares. Morgan Stanley increased their target price on Axsome Therapeutics from $242.00 to $251.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 11th. UBS Group restated a "buy" rating on shares of Axsome Therapeutics in a research note on Monday, August 24th. BMO Capital Markets started coverage on Axsome Therapeutics in a report on Monday, July 20th. They issued an "outperform" rating and a $310.00 price objective on the stock. Royal Bank Of Canada cut their price objective on Axsome Therapeutics from $304.00 to $297.00 and set an "outperform" rating on the stock in a research report on Tuesday, August 11th. Finally, Mizuho upped their target price on Axsome Therapeutics from $306.00 to $316.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Axsome Therapeutics has a consensus rating of "Moderate Buy" and an average price target of $267.60.

Axsome Therapeutics Stock Performance

The business's 50-day simple moving average is $221.12 and its 200 day simple moving average is $208.36. The firm has a market cap of $11.65 billion, a P/E ratio of -59.31 and a beta of 0.71. The company has a debt-to-equity ratio of 1.52, a quick ratio of 1.34 and a current ratio of 1.43.

Axsome Therapeutics (NASDAQ:AXSM - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The company reported ($0.99) EPS for the quarter, missing analysts' consensus estimates of ($0.89) by ($0.10). The firm had revenue of $218.38 million for the quarter, compared to analysts' expectations of $221.11 million. Axsome Therapeutics had a negative net margin of 24.68% and a negative return on equity of 265.55%. As a group, equities analysts predict that Axsome Therapeutics, Inc. will post -2.8 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Herriot Tabuteau sold 4,660 shares of Axsome Therapeutics stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $213.95, for a total transaction of $997,007.00. Following the completion of the sale, the chief executive officer directly owned 7,229 shares in the company, valued at approximately $1,546,644.55. This trade represents a 39.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Mark Jacobson sold 10,000 shares of the firm's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $208.65, for a total value of $2,086,500.00. Following the transaction, the chief operating officer owned 10,000 shares in the company, valued at $2,086,500. The trade was a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 109,330 shares of company stock worth $24,557,062. Insiders own 20.60% of the company's stock.

Hedge Funds Weigh In On Axsome Therapeutics

Institutional investors and hedge funds have recently modified their holdings of the business. ABS Direct Equity Fund LLC purchased a new position in Axsome Therapeutics during the second quarter worth approximately $60,000. Sequoia Financial Advisors LLC purchased a new stake in Axsome Therapeutics in the 2nd quarter worth $217,000. Integrated Wealth Concepts LLC purchased a new position in Axsome Therapeutics during the second quarter valued at $251,000. NewEdge Advisors LLC purchased a new stake in shares of Axsome Therapeutics during the second quarter worth about $277,000. Finally, IFP Advisors Inc increased its stake in shares of Axsome Therapeutics by 2.1% during the second quarter. IFP Advisors Inc now owns 62,273 shares of the company's stock worth $15,243,000 after purchasing an additional 1,279 shares in the last quarter. Hedge funds and other institutional investors own 81.49% of the company's stock.

About Axsome Therapeutics

Axsome Therapeutics, Inc is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system (CNS) disorders. The company's research programs address conditions with substantial unmet medical needs, including depression, migraine, narcolepsy, excessive daytime sleepiness, agitation associated with Alzheimer's disease, and other neurological or psychiatric disorders.

Axsome's commercial portfolio includes Auvelity, an oral medicine approved in the United States for the treatment of major depressive disorder in adults.

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