Compass Pathways (NASDAQ:CMPS) Shares Gap Down – Should You Sell?

Shares of Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS) gapped down before the market opened on Tuesday . The stock had previously closed at $12.84, but opened at $11.75. Compass Pathways shares last traded at $11.8670, with a volume of 3,940,334 shares changing hands.

Analyst Ratings Changes

CMPS has been the topic of a number of research reports. Morgan Stanley raised their price objective on Compass Pathways from $16.00 to $17.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. UBS Group set a $18.00 target price on Compass Pathways in a report on Thursday, May 7th. BTIG Research reissued a “buy” rating and set a $14.00 target price on shares of Compass Pathways in a research report on Wednesday, May 13th. Canaccord Genuity Group raised their price target on shares of Compass Pathways from $18.00 to $20.00 and gave the company a “buy” rating in a report on Friday, June 26th. Finally, Royal Bank Of Canada raised their price target on shares of Compass Pathways from $21.00 to $22.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Compass Pathways currently has an average rating of “Buy” and a consensus target price of $23.10.

Compass Pathways Trading Down 3.8%

The company has a quick ratio of 3.32, a current ratio of 3.32 and a debt-to-equity ratio of 0.15. The firm has a market cap of $1.67 billion, a price-to-earnings ratio of -3.91 and a beta of 2.47. The business has a 50 day moving average price of $11.63 and a 200-day moving average price of $8.43.

Compass Pathways (NASDAQ:CMPS) last released its quarterly earnings results on Wednesday, May 13th. The company reported ($0.30) EPS for the quarter, topping the consensus estimate of ($0.45) by $0.15. As a group, research analysts expect that Compass Pathways PLC Sponsored ADR will post -1.24 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CMPS. RTW Investments LP grew its holdings in Compass Pathways by 0.6% during the 4th quarter. RTW Investments LP now owns 8,757,390 shares of the company’s stock valued at $60,426,000 after purchasing an additional 50,000 shares in the last quarter. Nantahala Capital Management LLC lifted its holdings in Compass Pathways by 47.7% in the 2nd quarter. Nantahala Capital Management LLC now owns 4,179,930 shares of the company’s stock worth $11,704,000 after buying an additional 1,350,698 shares in the last quarter. Millennium Management LLC lifted its holdings in Compass Pathways by 39.9% in the 3rd quarter. Millennium Management LLC now owns 2,715,872 shares of the company’s stock worth $15,562,000 after buying an additional 774,090 shares in the last quarter. Toronto Dominion Bank boosted its position in Compass Pathways by 152.9% in the 4th quarter. Toronto Dominion Bank now owns 2,529,013 shares of the company’s stock valued at $17,447,000 after buying an additional 1,529,013 shares during the last quarter. Finally, ARK Investment Management LLC boosted its position in Compass Pathways by 1.6% in the 4th quarter. ARK Investment Management LLC now owns 2,156,012 shares of the company’s stock valued at $14,876,000 after buying an additional 34,894 shares during the last quarter. 46.19% of the stock is owned by institutional investors and hedge funds.

About Compass Pathways

Compass Pathways (NASDAQ: CMPS) is a clinical-stage biotechnology company focused on the development and commercialization of psilocybin therapy for mental health disorders. Founded in 2016 and headquartered in London with additional offices in the United States, Compass Pathways is pioneering the use of synthetic psilocybin combined with psychotherapy to address treatment-resistant depression. The company’s flagship program is a Phase IIb clinical trial evaluating COMP360, its proprietary psilocybin formulation, which has received Breakthrough Therapy designation from the U.S.