Axsome Therapeutics Shares Rise After Analyst Upgrade

On Monday, the stock price of Axsome Therapeutics, Inc. (NASDAQ:AXSM) experienced a notable increase of 5.3% following an upgrade by Truist Financial, which raised its price target from $150.00 to $180.00. With a buy rating still in place, the stock reached a high of $84.36 during the trading session and most recently traded at $84.29. A total of approximately 175,798 shares changed hands during this period, showing a significant drop of 77% from the average daily trading volume of 772,864 shares. The previous closing price was reported at $80.05.

Analyst Ratings for Axsome Therapeutics

In addition to Truist Financial's upgrade, several other analysts have also shared their perspectives on AXSM. Mizuho adjusted their target price down from $124.00 to $122.00 while maintaining an "outperform" rating in a report published last December. Meanwhile, HC Wainwright reaffirmed a "buy" rating in their own research note. Cantor Fitzgerald echoed similar sentiments with an "overweight" rating and a target price of $121.00 earlier this month. Furthermore, StockNews.com upgraded AXSM shares from a "sell" rating to a "hold" rating in a report dated November 20. Royal Bank of Canada also increased their price objective on the stock from $130.00 to $131.00 on October 4, categorizing it as "outperform." Overall, one analyst holds a "hold" rating while fourteen have labeled the company’s stock as a buy. Current consensus suggests a "Moderate Buy" average rating with an average price target of $129.43 according to MarketBeat.

Institutional Investor Activity

Various institutional investors have adjusted their positions in Axsome Therapeutics recently. Rhumbline Advisers raised its stake by 5.1% in the second quarter, bringing their total to 54,931 shares valued at approximately $4.42 million after acquiring an additional 2,674 shares. The Arizona State Retirement System increased their holdings by 2.1%, reaching 8,630 shares worth $695,000. WINTON GROUP Ltd notably enhanced its position by 156.6%, owning 8,823 shares valued at $710,000 after adding another 5,385 shares. Additionally, Sofinnova Investments Inc. made a substantial new investment amounting to $24.97 million. Lastly, XTX Topco Ltd raised its holdings by 177.9%, obtaining 11,205 shares worth about $902,000. In total, about 81.49% of Axsome Therapeutics' stock is owned by institutional investors.

Company Overview and Financial Performance

Axsome Therapeutics is a biopharmaceutical firm dedicated to creating innovative therapies for central nervous system (CNS) disorders in the U.S. The company's commercial products include Auvelity (dextromethorphan-bupropion), which is designed to treat major depressive disorder, and Sunosi (solriamfetol) for excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea. In its latest quarterly earnings report from November 12, Axsome reported an EPS of ($1.34), surpassing expectations of ($1.38) by $0.04. Revenue was significant at $104.76 million, exceeding predictions of $98.71 million. The company's net margin stood at -91.87%, and the return on equity was also negative at -158.36%. For the current fiscal year, analysts forecast an EPS of -4.6.

Market Performance and Outlook

As it stands, Axsome Therapeutics has a market capitalization of approximately $4.18 billion, with a P/E ratio of -13.21 and a beta of 1.04. The financial ratios show a current ratio of 2.44 and a quick ratio of 2.37, along with a debt-to-equity ratio of 1.97. The stock's performance over 50 days aligns with a simple moving average of $92.17, while the 200-day moving average is $89.16.

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