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

Axsome Therapeutics, Inc. (NASDAQ:AXSM) shares gapped down before the market opened on Monday. The stock had previously closed at $144.43, but opened at $137.15. Axsome Therapeutics shares last traded at $129.2240, with a volume of 650,574 shares changing hands.

Axsome Therapeutics News Roundup

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

• Positive Sentiment: Axsome reported Q3 revenue of $259.7 million, up 51.9% year over year and above estimates, and a loss of $0.25 per share versus a consensus loss of roughly $0.63. The results point to continued commercial growth and a narrower loss. Q3 results and business update
• Positive Sentiment: Bank of America reportedly considers the stock’s nearly 20% month-long decline excessive, suggesting potential recovery if investor concerns ease. BofA view on the selloff
• Neutral Sentiment: Analyst views remain broadly constructive but targets have been trimmed: RBC, Guggenheim, Baird and UBS lowered targets while retaining positive ratings; Morgan Stanley raised its target slightly but kept an equal-weight rating. The changes may reflect more cautious assumptions, despite substantial upside implied by the targets.
• Neutral Sentiment: Axsome plans to participate in several November investor conferences. These appearances could provide updates, but the announcement itself does not change the company’s outlook. Investor conference announcement
• Negative Sentiment: Investors remain concerned that Auvelity’s launch for Alzheimer’s disease agitation is progressing slowly. Commentary also questioned how much of Q3’s growth came from sustainable prescription volume, noting contributions from under-65 depression prescriptions and one-time or gross-to-net factors. Those concerns may temper the headline earnings beat. Auvelity launch concerns

Analysts Set New Price Targets

Several research analysts have recently weighed in on AXSM shares. Robert W. Baird decreased their price target on shares of Axsome Therapeutics from $246.00 to $220.00 and set an “outperform” rating on the stock in a report on Tuesday. Weiss Ratings reissued a “sell (d-)” rating on shares of Axsome Therapeutics in a research note on Thursday, October 15th. Mizuho boosted their target price on Axsome Therapeutics from $306.00 to $316.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 12th. Royal Bank Of Canada reduced their target price on Axsome Therapeutics from $295.00 to $273.00 and set an “outperform” rating for the company in a research report on Tuesday. Finally, BMO Capital Markets initiated coverage on Axsome Therapeutics in a research note on Monday, July 20th. They issued an “outperform” rating and a $310.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Axsome Therapeutics currently has an average rating of “Moderate Buy” and a consensus price target of $269.89.

Axsome Therapeutics Price Performance

The company has a debt-to-equity ratio of 1.52, a quick ratio of 1.34 and a current ratio of 1.43. The firm’s 50-day simple moving average is $182.01 and its 200-day simple moving average is $198.55.

Axsome Therapeutics (NASDAQ:AXSM) last released its quarterly earnings results on Monday, November 2nd. The company reported ($0.25) EPS for the quarter, topping analysts’ consensus estimates of ($0.63) by $0.38. The business had revenue of $259.69 million during the quarter, compared to analysts’ expectations of $249.19 million. Axsome Therapeutics had a negative net margin of 18.18% and a negative return on equity of 218.52%. The business’s quarterly revenue was up 51.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.94) EPS. Equities research analysts predict that Axsome Therapeutics, Inc. will post -3.04 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Herriot Tabuteau sold 4,660 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $213.95, for a total value of $997,007.00. Following the transaction, the chief executive officer owned 7,229 shares of the company’s stock, valued at $1,546,644.55. This represents a 39.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Mark L. Jacobson sold 10,000 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $208.65, for a total value of $2,086,500.00. Following the transaction, the chief operating officer owned 10,000 shares in the company, valued at $2,086,500. This trade represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 20.60% of the company’s stock.

Hedge Funds Weigh In On Axsome Therapeutics

A number of large investors have recently added to or reduced their stakes in AXSM. Hollencrest Capital Management boosted its position in Axsome Therapeutics by 400.0% during the first quarter. Hollencrest Capital Management now owns 200 shares of the company’s stock valued at $34,000 after buying an additional 160 shares during the period. ABS Direct Equity Fund LLC purchased a new position in shares of Axsome Therapeutics in the second quarter worth about $60,000. Silvant Capital Management LLC bought a new stake in shares of Axsome Therapeutics in the 2nd quarter valued at about $66,000. GAMMA Investing LLC lifted its stake in shares of Axsome Therapeutics by 19.9% in the 3rd quarter. GAMMA Investing LLC now owns 416 shares of the company’s stock valued at $77,000 after acquiring an additional 69 shares during the last quarter. Finally, Parkside Financial Bank & Trust lifted its stake in shares of Axsome Therapeutics by 505.4% in the 2nd quarter. Parkside Financial Bank & Trust now owns 339 shares of the company’s stock valued at $83,000 after acquiring an additional 283 shares during the last quarter. Hedge funds and other institutional investors own 81.49% of the company’s stock.

About Axsome Therapeutics

Axsome Therapeutics, Inc is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system (CNS) disorders. Founded in 2012 and headquartered in New York, the company develops medicines for conditions with significant unmet medical needs, including depression, narcolepsy, excessive daytime sleepiness, and other neurological disorders.

Axsome’s commercial products include Auvelity (dextromethorphan and bupropion), an oral treatment approved in the United States for major depressive disorder in adults, and Sunosi (solriamfetol), a therapy for excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea.