Compass Pathways (NASDAQ:CMPS) Announces Earnings Results, Misses Expectations By $1.49 EPS

Compass Pathways (NASDAQ:CMPS) issued its quarterly earnings results on Wednesday. The company reported ($1.88) earnings per share for the quarter, missing the consensus estimate of ($0.39) by ($1.49), FiscalAI reports.

Here are the key takeaways from Compass Pathways’ conference call:

• COMP360 delivered statistically significant positive Phase III results in treatment-resistant depression, with rapid symptom reduction and durability demonstrated through six months; management says the clinical and regulatory profile is now substantially de-risked.
• COMPASS expects to complete its rolling NDA submission to the FDA in the fourth quarter of 2026, with some modules already under review, and believes the recently finalized psychedelic guidance will not materially affect its ongoing approval process.
• The company anticipates a launch in the first half of 2027, but timing remains fluid because federal DEA and state rescheduling must follow potential FDA approval; management expects DEA rescheduling could occur within 90 days, though the exact timing is uncertain.
• COMPASS reported $433 million in cash as of June 30, which management believes funds operations through launch and into 2028, while commercial preparations include sales-force recruiting, payer engagement, site training, and plans to address roughly 8,000 interventional psychiatry centers.
• The company is continuing to collect 52-week safety data for both Phase III studies and expects to provide the full data set to the FDA during review; it is also restarting investigator-initiated studies in areas such as OCD while prioritizing the TRD approval and launch.

Compass Pathways Stock Performance

Shares of NASDAQ:CMPS traded up $1.51 during trading on Wednesday, hitting $13.31. 5,326,114 shares of the stock traded hands, compared to its average volume of 3,737,054. 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 company has a fifty day moving average price of $12.51 and a two-hundred day moving average price of $9.22. Compass Pathways has a 52-week low of $3.97 and a 52-week high of $15.40. The company has a market cap of $1.80 billion, a price-to-earnings ratio of -4.22 and a beta of 2.50.

Institutional Trading of Compass Pathways

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CMPS. Toronto Dominion Bank increased its holdings in Compass Pathways by 152.9% in the fourth 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 in the last quarter. Nantahala Capital Management LLC increased its stake in shares of Compass Pathways by 47.7% in the 2nd quarter. Nantahala Capital Management LLC now owns 4,179,930 shares of the company’s stock valued at $11,704,000 after purchasing an additional 1,350,698 shares in the last quarter. Ameriprise Financial Inc. acquired a new position in Compass Pathways in the 3rd quarter worth about $6,926,000. Siren L.L.C. purchased a new position in Compass Pathways during the fourth quarter worth approximately $6,900,000. Finally, Two Sigma Investments LP grew its holdings in Compass Pathways by 838.4% in the third quarter. Two Sigma Investments LP now owns 1,075,277 shares of the company’s stock valued at $6,161,000 after purchasing an additional 960,685 shares during the period. Institutional investors and hedge funds own 46.19% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on CMPS. Stifel Nicolaus upped their price objective on shares of Compass Pathways from $14.00 to $21.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Oppenheimer restated an “outperform” rating and set a $20.00 target price on shares of Compass Pathways in a research report on Tuesday, July 7th. Maxim Group upped their price target on shares of Compass Pathways from $12.00 to $20.00 and gave the company a “buy” rating in a report on Friday, May 15th. Morgan Stanley reaffirmed an “overweight” rating and set a $17.00 price target on shares of Compass Pathways in a research report on Tuesday, July 7th. Finally, BTIG Research lifted their price objective on Compass Pathways from $14.00 to $25.00 and gave the company a “buy” rating in a research note on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Compass Pathways presently has a consensus rating of “Moderate Buy” and a consensus price target of $23.36.

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.