Bright Minds Biosciences (NASDAQ:DRUG) Shares Down 7.2% – Here’s Why

Bright Minds Biosciences Inc. (NASDAQ:DRUG) shares were down 7.2% on Monday . The company traded as low as $82.28 and last traded at $81.7670. Approximately 194,657 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 184,286 shares. The stock had previously closed at $88.07.

Bright Minds Biosciences News Roundup

Here are the key news stories impacting Bright Minds Biosciences this week:

• Positive Sentiment: HC Wainwright kept a Buy rating on Bright Minds Biosciences and maintained a $145 price target, reinforcing a favorable long-term view. Analyst note via Benzinga
• Positive Sentiment: The firm raised several future earnings estimates, including FY2026 to ($5.92) EPS, FY2027 to ($9.07) EPS, and Q4 2027 to ($2.35) EPS, suggesting improving expectations for the company’s pipeline and longer-term outlook.
• Neutral Sentiment: HC Wainwright also made mixed forecast tweaks across other periods, including a slight reduction in FY2030 EPS to $3.09 and a small change to FY2029 EPS to ($4.04), indicating the model is still highly dependent on future development milestones.
• Negative Sentiment: The estimates still point to significant losses in the near and medium term, with projected negative EPS across multiple years, which may temper enthusiasm despite the bullish rating.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on DRUG shares. HC Wainwright reiterated a “buy” rating and issued a $145.00 price target on shares of Bright Minds Biosciences in a report on Monday. Jefferies Financial Group started coverage on shares of Bright Minds Biosciences in a report on Monday, April 13th. They issued a “buy” rating and a $145.00 price target on the stock. Wall Street Zen lowered shares of Bright Minds Biosciences from a “hold” rating to a “sell” rating in a report on Saturday, April 18th. Piper Sandler reiterated an “overweight” rating and issued a $220.00 price target (up from $190.00) on shares of Bright Minds Biosciences in a report on Wednesday, May 20th. Finally, BTIG Research reiterated a “buy” rating and issued a $147.00 price target on shares of Bright Minds Biosciences in a report on Monday, March 30th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Bright Minds Biosciences currently has an average rating of “Moderate Buy” and a consensus price target of $143.83.

Bright Minds Biosciences Stock Performance

The firm has a market cap of $747.22 million, a price-to-earnings ratio of -31.47 and a beta of -5.53. The company’s fifty day moving average is $82.27 and its two-hundred day moving average is $79.96.

Bright Minds Biosciences (NASDAQ:DRUG) last posted its earnings results on Wednesday, May 20th. The company reported ($0.80) earnings per share for the quarter, beating the consensus estimate of ($0.86) by $0.06. As a group, analysts forecast that Bright Minds Biosciences Inc. will post -4.99 earnings per share for the current fiscal year.

Insider Buying and Selling at Bright Minds Biosciences

In related news, major shareholder Cormorant Asset Management, Lp sold 109,331 shares of Bright Minds Biosciences stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $89.50, for a total transaction of $9,785,124.50. Following the transaction, the insider owned 950,000 shares in the company, valued at approximately $85,025,000. The trade was a 10.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 42.66% of the company’s stock.

Hedge Funds Weigh In On Bright Minds Biosciences

Hedge funds and other institutional investors have recently made changes to their positions in the business. Braidwell LP acquired a new position in shares of Bright Minds Biosciences during the 3rd quarter valued at $18,422,000. Seven Grand Managers LLC acquired a new position in shares of Bright Minds Biosciences during the 4th quarter valued at $3,902,000. JPMorgan Chase & Co. lifted its holdings in shares of Bright Minds Biosciences by 142.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 5,265 shares of the company’s stock valued at $319,000 after acquiring an additional 3,092 shares in the last quarter. Gordian Capital Singapore Pte Ltd acquired a new position in shares of Bright Minds Biosciences during the 3rd quarter valued at $73,000. Finally, Janus Henderson Group PLC lifted its holdings in shares of Bright Minds Biosciences by 11.1% during the 1st quarter. Janus Henderson Group PLC now owns 1,284,324 shares of the company’s stock valued at $93,518,000 after acquiring an additional 128,329 shares in the last quarter. Institutional investors and hedge funds own 40.52% of the company’s stock.

Bright Minds Biosciences Company Profile

Bright Minds Biosciences Inc, trading on the NASDAQ under the symbol DRUG, is a clinical-stage biotechnology company focused on developing novel small-molecule therapeutics for mental health and neurodegenerative disorders. The company’s research leverages proprietary chemistry platforms to create serotonin-modulating and neuroprotective compounds derived from psychedelic-inspired structures. Bright Minds aims to address unmet needs in conditions such as major depressive disorder, post-traumatic stress disorder and Alzheimer’s disease through orally administered treatments.

The company’s lead candidate, BMB-101, is an oral 5-HT2A receptor-modulating compound in clinical development for mood and anxiety disorders.