Compass Pathways (NASDAQ:CMPS) Shares Up 9.7% – What’s Next?

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS) shot up 9.7% during trading on Wednesday . The stock traded as high as $5.78 and last traded at $5.7250. 1,165,389 shares changed hands during trading, a decline of 61% from the average session volume of 2,995,550 shares. The stock had previously closed at $5.22.

Trending Headlines about Compass Pathways

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

• Positive Sentiment: HC Wainwright reiterates a “Buy” rating and a $70 price target for CMPS, signaling a large upside thesis tied to the company’s COMP360 program despite near‑term estimate cuts. MarketBeat: CMPS
• Positive Sentiment: Canaccord Genuity lowered its target from $20 to $18 but maintained a “Buy” rating, still implying substantial upside from current levels. Benzinga
• Positive Sentiment: Morgan Stanley trimmed its price target from $18 to $16 but kept an “Overweight” rating, indicating continued institutional conviction in longer‑term upside. American Banking News
• Neutral Sentiment: Preview/analysis pieces are circulating about the upcoming FDA review meeting for COMP360 — this is a near‑term regulatory catalyst that could swing sentiment materially but outcome is uncertain. MSN: FDA review preview
• Negative Sentiment: HC Wainwright cut near‑term earnings estimates across multiple quarters and lowered FY2026 and FY2027 EPS forecasts (FY2026 to ($1.66) from ($1.36); FY2027 to ($0.96) from ($0.72)), flagging a worse earnings trajectory that may pressure the stock. MarketBeat: CMPS
• Negative Sentiment: Multiple price‑target cuts this week (Canaccord, Morgan Stanley) compress near‑term expectations and could weigh on sentiment even though ratings remain constructive.

Wall Street Analysts Forecast Growth

CMPS has been the subject of several recent analyst reports. Royal Bank Of Canada raised their price objective on shares of Compass Pathways from $21.00 to $22.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. Compass Point set a $15.00 target price on shares of Compass Pathways in a report on Thursday, February 12th. Canaccord Genuity Group dropped their price target on shares of Compass Pathways from $20.00 to $18.00 and set a “buy” rating for the company in a research note on Thursday. Lifesci Capital upgraded shares of Compass Pathways to a “strong-buy” rating in a report on Thursday, February 12th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass Pathways in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Compass Pathways currently has an average rating of “Moderate Buy” and a consensus target price of $21.63.

Compass Pathways Stock Down 5.1%

The stock has a market capitalization of $514.17 million, a price-to-earnings ratio of -1.72 and a beta of 1.90. The business has a 50-day moving average of $6.70 and a 200-day moving average of $6.29. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.23 and a current ratio of 0.77.

Compass Pathways (NASDAQ:CMPS) last posted its earnings results on Tuesday, March 24th. The company reported ($1.00) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.59). On average, sell-side analysts expect that Compass Pathways PLC Sponsored ADR will post -2.33 EPS for the current year.

Hedge Funds Weigh In On Compass Pathways

A number of hedge funds have recently made changes to their positions in the stock. Toronto Dominion Bank increased its holdings 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 purchasing an additional 1,529,013 shares during the last quarter. Jefferies Financial Group Inc. acquired a new position in Compass Pathways during the third quarter worth $7,890,000. Nantahala Capital Management LLC boosted its position in shares of Compass Pathways by 47.7% during the second 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 during the period. Ameriprise Financial Inc. purchased a new position in shares of Compass Pathways during the third quarter worth $6,926,000. Finally, Hsbc Holdings PLC acquired a new stake in shares of Compass Pathways in the second quarter valued at $3,011,000. Hedge funds and other institutional investors own 46.19% of the company’s stock.

Compass Pathways Company Profile

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.