Compass Pathways (NASDAQ:CMPS) Shares Gap Up – What’s Next?

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS)’s share price gapped up before the market opened on Tuesday. The stock had previously closed at $8.41, but opened at $9.00. Compass Pathways shares last traded at $9.1150, with a volume of 2,243,143 shares changing hands.

Key Stories Impacting Compass Pathways

Here are the key news stories impacting Compass Pathways this week:

• Positive Sentiment: BTIG Research reaffirmed its “Buy” rating and set a $25 price target, implying substantial upside from the recently cited $9.05 share price. The target suggests the firm believes Compass’s pipeline and commercialization opportunity are undervalued.
• Positive Sentiment: Compass reported a quarterly loss of $0.31 per share, better than the $0.39 consensus estimate. Although the company remains unprofitable, the earnings beat may support confidence in its cost controls and development progress. Compass Pathways Press Release
• Positive Sentiment: Jefferies said Compass’s robust clinical data could support pricing power if its treatment reaches the market. This reinforces the potential value of the company’s clinical results and future commercial economics. Jefferies Commentary on Compass Pathways
• Positive Sentiment: FDA approval remains a major potential catalyst. A successful approval could materially expand Compass’s addressable market and provide a significant boost to the shares; the average Wall Street price target also indicates substantial upside. Why Compass Pathways Is Worth a Second Look
• Neutral Sentiment: A joint survey with the Depression and Bipolar Support Alliance highlighted the burden of treatment-resistant depression on patients and caregivers. The findings may strengthen awareness of the unmet need Compass is targeting, but they do not directly change near-term revenue or regulatory expectations. Compass Pathways and DBSA Survey
• Negative Sentiment: Competitive concerns in the FDA psychedelic-treatment race are the main pressure on CMPS. Reports that Compass and other companies could face increased competition have raised doubts about market share, timing, and pricing, contributing to weakness despite the earnings beat. CMPS and HELP Face Competitive FDA Concerns

Analyst Ratings Changes

A number of research firms have weighed in on CMPS. Wolfe Research reiterated an “outperform” rating on shares of Compass Pathways in a research report on Tuesday, July 7th. Weiss Ratings restated a “sell (d-)” rating on shares of Compass Pathways in a report on Thursday, October 15th. Royal Bank Of Canada reduced their price objective on Compass Pathways from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. Oppenheimer reaffirmed an “outperform” rating on shares of Compass Pathways in a research report on Wednesday, August 5th. Finally, Wells Fargo & Company began coverage on Compass Pathways in a research note on Monday, July 27th. They issued an “equal weight” rating and a $13.00 target price on the stock. One research 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 stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $23.36.

Compass Pathways Stock Performance

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 firm’s 50-day moving average is $12.81 and its two-hundred day moving average is $10.39. The stock has a market cap of $1.25 billion, a price-to-earnings ratio of -1.94 and a beta of 2.55.

Compass Pathways (NASDAQ:CMPS) last released its earnings results on Wednesday, November 4th. The company reported ($0.31) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.39) by $0.08. As a group, sell-side analysts expect that Compass Pathways PLC Sponsored ADR will post -1.26 earnings per share for the current year.

Institutional Investors Weigh In On Compass Pathways

Several institutional investors and hedge funds have recently modified their holdings of CMPS. EverSource Wealth Advisors LLC grew its position in Compass Pathways by 67.7% in the first quarter. EverSource Wealth Advisors LLC now owns 4,754 shares of the company’s stock valued at $26,000 after acquiring an additional 1,920 shares in the last quarter. Parallel Advisors LLC lifted its position 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 worth $40,000 after purchasing an additional 7,183 shares in the last quarter. Ancora Advisors LLC acquired a new position in shares of Compass Pathways during the second quarter worth $43,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Compass Pathways during the third quarter worth $85,000. Finally, Entropy Technologies LP purchased a new position in shares of Compass Pathways in the first quarter valued at $110,000. Hedge funds and other institutional investors own 46.19% of the company’s stock.

Compass Pathways Company Profile

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.