Compass Pathways (NASDAQ:CMPS) Stock Falls 7.1% - Should You Sell?

Key Points

• Compass Pathways shares fell 7.1% to about $10.75, with trading volume 66% below the stock’s average daily volume.
• Despite the decline, analysts remain broadly positive: the stock has a consensus “Moderate Buy” rating and a consensus price target of $23.36, more than double its trading price.
• The company reported a quarterly loss of $1.88 per share, missing estimates by $1.49, while institutional investors and hedge funds own approximately 46.19% of the stock.

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS - Get Free Report)'s share price fell 7.1% on Monday. The stock traded as low as $10.73 and last traded at $10.7540. 1,148,060 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 3,398,678 shares. The stock had previously closed at $11.57.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Evercore upgraded Compass Pathways from an "in-line" rating to an "outperform" rating and set a $21.00 price objective for the company in a research report on Wednesday, July 8th. Jefferies Financial Group reiterated a "buy" rating on shares of Compass Pathways in a report on Wednesday, September 9th. Wells Fargo & Company started coverage on shares of Compass Pathways in a research report on Monday, July 27th. They set an "equal weight" rating and a $13.00 price objective on the stock. B. Riley Financial boosted their price target on Compass Pathways from $17.00 to $22.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, Compass Point set a $25.00 price objective on shares of Compass Pathways in a research report on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $23.36.

Compass Pathways Stock Down 23.2%

The company has a debt-to-equity ratio of 0.60, a current ratio of 1.30 and a quick ratio of 1.30. The company has a market capitalization of $1.23 billion, a PE ratio of -1.92 and a beta of 2.43. The business has a 50-day moving average of $12.91 and a 200 day moving average of $10.38.

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

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Eagle Health Investments LP raised its stake in Compass Pathways by 35.6% in the 1st quarter. Eagle Health Investments LP now owns 2,060,427 shares of the company's stock worth $11,394,000 after acquiring an additional 541,039 shares during the last quarter. Orbimed Advisors LLC purchased a new stake in shares of Compass Pathways in the 1st quarter valued at $6,363,000. Affinity Asset Advisors LLC boosted its holdings in shares of Compass Pathways by 454.2% in the 1st quarter. Affinity Asset Advisors LLC now owns 1,108,483 shares of the company's stock valued at $6,130,000 after acquiring an additional 908,483 shares during the last quarter. Eversept Partners LP acquired a new stake in shares of Compass Pathways in the first quarter worth $3,749,000. Finally, Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Compass Pathways by 23.6% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 399,506 shares of the company's stock worth $4,970,000 after acquiring an additional 76,297 shares during the period. 46.19% of the stock is owned by institutional investors and hedge funds.

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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