Compass Pathways (NASDAQ:CMPS) Trading Up 11.4% - Time to Buy?

Key Points

• Compass Pathways shares jumped 11.4% to about $15.37, although trading volume was 75% below the average daily level.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $23.36; several firms recently raised or maintained buy ratings.
• The company reported a significant quarterly EPS loss of $1.88 versus estimates of a $0.39 loss, and analysts expect a full-year loss of $1.26 per share despite continued development of its COMP360 psilocybin therapy.

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS - Get Free Report)'s stock price traded up 11.4% on Thursday . The company traded as high as $14.99 and last traded at $15.3670. 872,062 shares changed hands during trading, a decline of 75% from the average daily volume of 3,535,275 shares. The stock had previously closed at $13.80.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CMPS. Stifel Nicolaus lifted their target price on shares of Compass Pathways from $14.00 to $21.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. TD Cowen reissued a "buy" rating on shares of Compass Pathways in a report on Monday, June 1st. Canaccord Genuity Group boosted their price objective on shares of Compass Pathways from $18.00 to $20.00 and gave the company a "buy" rating in a research report on Friday, June 26th. Royal Bank Of Canada lowered 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 note on Thursday, August 6th. Finally, Raymond James Financial reiterated a "buy" rating on shares of Compass Pathways in a report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $23.36.

Compass Pathways Price Performance

The business has a fifty day simple moving average of $13.17 and a two-hundred day simple moving average of $10.72. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.60. The stock has a market cap of $2.06 billion, a PE ratio of -3.21 and a beta of 2.54.

Compass Pathways (NASDAQ:CMPS - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($1.88) EPS for the quarter, missing analysts' consensus estimates of ($0.39) by ($1.49). Research analysts forecast that Compass Pathways PLC Sponsored ADR will post -1.26 earnings per share for the current year.

Hedge Funds Weigh In On Compass Pathways

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ancora Advisors LLC bought a new position in shares of Compass Pathways in the 2nd quarter worth about $43,000. EverSource Wealth Advisors LLC grew its holdings in Compass Pathways by 67.7% in the first quarter. EverSource Wealth Advisors LLC now owns 4,754 shares of the company's stock worth $26,000 after purchasing an additional 1,920 shares during the period. Caitong International Asset Management Co. Ltd bought a new position in shares of Compass Pathways during the fourth quarter valued at approximately $47,000. Parallel Advisors LLC increased its stake 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 purchasing an additional 7,183 shares in the last quarter. Finally, North Star Investment Management Corp. lifted its holdings 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 valued at $42,000 after purchasing an additional 7,000 shares during the last quarter. Hedge funds and other institutional investors own 46.19% of the company's stock.

Compass Pathways Company Profile

Compass Pathways plc NASDAQ: CMPS is a biotechnology company developing novel treatments for mental health conditions. The company's primary focus is psilocybin therapy, which combines a proprietary investigational formulation with psychological support delivered by trained therapists.

Its lead candidate, COMP360, is a synthetic crystalline formulation of psilocybin being studied primarily for treatment-resistant depression. Compass Pathways has conducted mid- and late-stage clinical trials evaluating COMP360 and has also investigated its potential use in other difficult-to-treat psychiatric conditions, including post-traumatic stress disorder and anorexia nervosa.

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