Axsome Therapeutics (NASDAQ:AXSM) Shares Gap Down – Time to Sell?

Axsome Therapeutics, Inc. (NASDAQ:AXSM) gapped down prior to trading on Monday . The stock had previously closed at $183.72, but opened at $176.42. Axsome Therapeutics shares last traded at $177.5770, with a volume of 153,220 shares.

Key Axsome Therapeutics News

Here are the key news stories impacting Axsome Therapeutics this week:

• Positive Sentiment: Wolfe Research initiated coverage with an “outperform” rating and a $230 price target (roughly ~40% upside from current levels), providing fresh institutional buy-side interest. Read More.
• Positive Sentiment: Needham & Company LLC also initiated coverage with a Buy rating, adding to the wave of bullish analyst attention that can support share demand. Read More.
• Positive Sentiment: Axsome dosed the first patient in the CLARITY Phase 3 trial of solriamfetol for MDD with excessive daytime sleepiness — a meaningful clinical progress milestone that can increase the asset’s value if the program advances. Read More.
• Positive Sentiment: Q4 revenue jumped ~65% year-over-year and topped estimates, driven by Auvelity and other product sales — a strong top-line signal for ongoing commercial traction. Read More.
• Neutral Sentiment: Management will present at multiple investor conferences in March (TD Cowen and others), which improves visibility and may prompt further analyst updates or investor flows. Read More.
• Neutral Sentiment: Short?interest data in the feed shows 0 shares and a 0.0 days?to?cover figure — this appears to be a reporting anomaly rather than actionable short?selling pressure; treat cautiously.
• Negative Sentiment: Axsome’s Q4 EPS missed estimates (loss wider than expected) despite revenue strength — the profitability miss likely tempered investor enthusiasm and contributed to intraday selling. Read More.

Analyst Ratings Changes

Several brokerages have recently commented on AXSM. Morgan Stanley set a $207.00 price objective on Axsome Therapeutics in a report on Tuesday. Robert W. Baird set a $209.00 price target on shares of Axsome Therapeutics in a report on Tuesday, January 13th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Axsome Therapeutics in a report on Wednesday, January 21st. UBS Group increased their target price on Axsome Therapeutics from $248.00 to $251.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Guggenheim lifted their price target on Axsome Therapeutics from $205.00 to $220.00 and gave the stock a “buy” rating in a research note on Tuesday. Seventeen equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Axsome Therapeutics has a consensus rating of “Moderate Buy” and a consensus price target of $216.12.

Axsome Therapeutics Stock Performance

The business’s 50-day simple moving average is $174.91 and its two-hundred day simple moving average is $145.40. The company has a quick ratio of 1.50, a current ratio of 1.57 and a debt-to-equity ratio of 1.66. The firm has a market cap of $8.28 billion, a price-to-earnings ratio of -44.50, a P/E/G ratio of 12.57 and a beta of 0.40.

Axsome Therapeutics (NASDAQ:AXSM) last announced its quarterly earnings results on Monday, February 23rd. The company reported ($0.56) earnings per share for the quarter, beating the consensus estimate of ($0.70) by $0.14. The firm had revenue of $196.00 million during the quarter, compared to analyst estimates of $191.33 million. Axsome Therapeutics had a negative return on equity of 251.47% and a negative net margin of 28.69%.The business’s quarterly revenue was up 65.0% on a year-over-year basis. As a group, sell-side analysts expect that Axsome Therapeutics, Inc. will post -2.79 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Axsome Therapeutics news, Director Mark E. Saad sold 37,577 shares of the company’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $165.18, for a total transaction of $6,206,968.86. Following the completion of the transaction, the director directly owned 10,002 shares in the company, valued at approximately $1,652,130.36. This represents a 78.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Herriot Tabuteau sold 78,703 shares of Axsome Therapeutics stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $171.28, for a total value of $13,480,249.84. Following the completion of the sale, the chief executive officer owned 7,229 shares in the company, valued at approximately $1,238,183.12. The trade was a 91.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 308,874 shares of company stock worth $51,390,805. Corporate insiders own 22.40% of the company’s stock.

Institutional Investors Weigh In On Axsome Therapeutics

Large investors have recently modified their holdings of the business. Birchview Capital LP grew its stake in Axsome Therapeutics by 1.0% during the 4th quarter. Birchview Capital LP now owns 6,061 shares of the company’s stock valued at $1,107,000 after acquiring an additional 61 shares in the last quarter. PNC Financial Services Group Inc. raised its position in shares of Axsome Therapeutics by 3.5% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,921 shares of the company’s stock valued at $351,000 after buying an additional 65 shares during the period. Xponance LLC lifted its stake in shares of Axsome Therapeutics by 2.4% in the 4th quarter. Xponance LLC now owns 3,265 shares of the company’s stock valued at $596,000 after purchasing an additional 76 shares during the last quarter. Allworth Financial LP boosted its stake in Axsome Therapeutics by 6.6% during the third quarter. Allworth Financial LP now owns 1,442 shares of the company’s stock worth $175,000 after buying an additional 89 shares during the period. Finally, Vanguard Personalized Indexing Management LLC boosted its position in shares of Axsome Therapeutics by 4.2% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 2,190 shares of the company’s stock worth $400,000 after purchasing an additional 89 shares during the period. Hedge funds and other institutional investors own 81.49% of the company’s stock.

About Axsome Therapeutics

Axsome Therapeutics, Inc is a clinical-stage biopharmaceutical company dedicated to developing novel therapies for central nervous system (CNS) disorders. The company focuses on small-molecule drugs designed to address unmet medical needs in areas such as depression, migraine, narcolepsy and fibromyalgia. Axsome employs a precision medicine approach, leveraging pharmacologic innovation to target underlying mechanisms of disease and improve patient outcomes.

Axsome’s pipeline includes several late-stage and approved product candidates.