Bright Minds Biosciences (NASDAQ:DRUG) Shares Gap Up - Time to Buy?

Key Points

• Bright Minds Biosciences shares gapped higher, opening at $54.25 versus a prior close of $51.09 and last trading near $54.04. The company has a market capitalization of approximately $532 million.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $144.71, although several firms have issued more cautious Hold or Market Perform ratings.
• Institutional investors increased their positions, and hedge funds and other institutions collectively own 40.52% of the stock. Bright Minds is developing serotonergic treatments for neurological and psychiatric disorders, including its BMB-101 program.

Bright Minds Biosciences Inc. (NASDAQ:DRUG - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $51.09, but opened at $54.25. Bright Minds Biosciences shares last traded at $54.0420, with a volume of 404 shares trading hands.

Wall Street Analysts Forecast Growth

DRUG has been the topic of several recent research reports. BTIG Research restated a "buy" rating and issued a $147.00 price objective on shares of Bright Minds Biosciences in a research report on Monday, August 17th. Wolfe Research started coverage on Bright Minds Biosciences in a research report on Thursday, October 15th. They issued an "outperform" rating and a $150.00 target price for the company. Oppenheimer downgraded Bright Minds Biosciences to a "market perform" rating in a research note on Thursday, August 20th. Zacks Research cut shares of Bright Minds Biosciences from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 15th. Finally, Lifesci Capital upgraded Bright Minds Biosciences to a "strong-buy" rating in a research report on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $144.71.

Bright Minds Biosciences Trading Up 1.2%

The stock has a fifty day moving average of $60.79 and a 200-day moving average of $73.81. The firm has a market capitalization of $532.19 million, a price-to-earnings ratio of -26.43 and a beta of -5.22.

Bright Minds Biosciences (NASDAQ:DRUG - Get Free Report) last released its quarterly earnings results on Friday, August 14th. The company reported ($0.17) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.22) by $1.05. As a group, equities research analysts forecast that Bright Minds Biosciences Inc. will post -2.93 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Bright Minds Biosciences

Hedge funds and other institutional investors have recently made changes to their positions in the company. Strs Ohio lifted its stake in shares of Bright Minds Biosciences by 200.0% in the first quarter. Strs Ohio now owns 2,700 shares of the company's stock worth $197,000 after buying an additional 1,800 shares during the last quarter. AdvisorShares Investments LLC lifted its position in Bright Minds Biosciences by 26.8% in the first quarter. AdvisorShares Investments LLC now owns 12,613 shares of the company's stock worth $920,000 after purchasing an additional 2,669 shares during the period. Bank of New York Mellon Corp boosted its position in shares of Bright Minds Biosciences by 32.7% during the 1st quarter. Bank of New York Mellon Corp now owns 13,253 shares of the company's stock valued at $967,000 after acquiring an additional 3,264 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Bright Minds Biosciences by 28.8% in the 1st quarter. Bank of America Corp DE now owns 19,422 shares of the company's stock valued at $1,417,000 after purchasing an additional 4,347 shares during the period. Finally, Engineers Gate Manager LP acquired a new position in Bright Minds Biosciences during the second quarter worth $380,000. 40.52% of the stock is owned by hedge funds and other institutional investors.

About Bright Minds Biosciences

Bright Minds Biosciences Inc is a biotechnology company focused on developing novel treatments for neurological and psychiatric disorders. The company's research is centered on serotonergic compounds designed to provide therapeutic benefits associated with psychedelic medicines while potentially reducing unwanted effects such as hallucinations and cardiovascular or behavioral complications.

Bright Minds' pipeline includes BMB-101, a selective serotonin 5-HT2C receptor agonist being developed for conditions including substance use disorders.

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