Compass Pathways (NASDAQ:CMPS) Shares Down 1.8% - Should You Sell?

Key Points

• Compass Pathways shares fell 1.8% to $11.63, with trading volume about 52% below the average session volume. The stock’s market capitalization is approximately $1.61 billion.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus rating and an average price target of $23.36, although ratings range from “Strong Buy” to “Sell.”
• The company reported a quarterly loss of $1.88 per share, missing the consensus estimate of a $0.39 loss by $1.49. Analysts expect a full-year loss of approximately $1.26 per share, underscoring ongoing development-stage risk.

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS - Get Free Report)'s stock price fell 1.8% during trading on Thursday. The company traded as low as $11.43 and last traded at $11.63. Approximately 1,340,930 shares were traded during mid-day trading, a decline of 52% from the average session volume of 2,795,700 shares. The stock had previously closed at $11.84.

Analysts Set New Price Targets

CMPS has been the topic of a number of analyst reports. Stifel Nicolaus lifted their price objective on shares of Compass Pathways from $14.00 to $21.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of Compass Pathways in a research note on Thursday, October 15th. Wells Fargo & Company started coverage on shares of Compass Pathways in a research note on Monday, July 27th. They issued an "equal weight" rating and a $13.00 target price for the company. HC Wainwright reduced their target price on shares of Compass Pathways from $70.00 to $65.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Finally, Royal Bank Of Canada cut their price objective on shares of Compass Pathways from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $23.36.

Compass Pathways Stock Down 1.8%

The firm has a 50-day simple moving average of $13.15 and a 200 day simple moving average of $11.87. The company has a market capitalization of $1.61 billion, a PE ratio of -2.52 and a beta of 2.55. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.30 and a quick ratio of 1.30.

Compass Pathways (NASDAQ:CMPS - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($1.88) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.39) by ($1.49). On average, research analysts predict that Compass Pathways PLC Sponsored ADR will post -1.26 EPS for the current fiscal year.

Institutional Investors Weigh In On Compass Pathways

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Ancora Advisors LLC bought a new stake in shares of Compass Pathways in the 2nd quarter valued at approximately $43,000. EverSource Wealth Advisors LLC raised its stake in Compass Pathways by 67.7% during the first quarter. EverSource Wealth Advisors LLC now owns 4,754 shares of the company's stock worth $26,000 after acquiring an additional 1,920 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in shares of Compass Pathways in the 4th quarter worth approximately $47,000. Parallel Advisors LLC boosted its holdings in shares of Compass Pathways by 8,450.6% during the first quarter. Parallel Advisors LLC now owns 7,268 shares of the company's stock valued at $40,000 after acquiring an additional 7,183 shares during the period. Finally, North Star Investment Management Corp. grew its position in shares of Compass Pathways by 1,354.0% during the first quarter. North Star Investment Management Corp. now owns 7,517 shares of the company's stock worth $42,000 after acquiring an additional 7,000 shares during the last quarter. Institutional investors own 46.19% of the company's stock.

About Compass Pathways

Compass Pathways plc is a biotechnology company developing novel treatments for mental health conditions. The company's lead investigational product is COMP360, a proprietary formulation of synthetic psilocybin administered with psychological support in a controlled clinical setting.

Compass Pathways has focused primarily on treatment-resistant depression, a condition in which patients do not respond adequately to existing therapies. Its research programs have included mid- and late-stage clinical trials designed to evaluate the safety and effectiveness of COMP360, as well as studies exploring its potential use in other mental health disorders.

Founded in 2016 and headquartered in London, Compass Pathways conducts research and clinical development activities across the United States, the United Kingdom and other international markets.

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