Axsome Therapeutics (NASDAQ:AXSM) Shares Gap Down – Should You Sell?

Shares of 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 changing hands.

Key Headlines Impacting Axsome Therapeutics

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

• Positive Sentiment: Q4 results beat consensus on revenue and showed strong year‑over‑year growth: revenue ~ $196M (+65% y/y) and management reported EPS that topped Street estimates; management also posted supporting slides and the conference call. View Press Release
• Positive Sentiment: Sell‑side support: Needham reaffirmed a “buy” rating and set a $225 price target, signaling continued analyst conviction in Axsome’s growth pathway. Benzinga
• Neutral Sentiment: Full earnings‑call transcript and summary are available for investors who want color on commercialization, pipeline updates and guidance commentary (use these to assess sustainability of revenue growth). Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Media coverage frames Axsome as a longer‑term mental‑health growth story; longer‑horizon bullish takes note large TAM and pipeline but don’t change near‑term cash/profitability dynamics. Got $10,000? Axsome Could Be a Mental‑Health Moonshot
• Negative Sentiment: Profitability and valuation concerns remain: the company still reports quarterly losses (some outlets flag a slight EPS miss on certain metrics), negative net margin and return on equity, and a relatively high debt load — factors that can trigger investor selling even after a revenue beat. Axsome Reports Q4 Loss, Tops Revenue Estimates

Analyst Ratings Changes

Several research firms have recently commented on AXSM. Wells Fargo & Company upped their target price on Axsome Therapeutics from $157.00 to $193.00 and gave the company an “overweight” rating in a research report on Tuesday, January 13th. Needham & Company LLC reiterated a “buy” rating and set a $225.00 price target on shares of Axsome Therapeutics in a research report on Monday. UBS Group increased their target price on shares of Axsome Therapeutics from $163.00 to $248.00 and gave the stock a “buy” rating in a report on Tuesday, January 6th. Guggenheim reissued a “buy” rating and issued a $205.00 price target on shares of Axsome Therapeutics in a research note on Friday, January 2nd. Finally, Mizuho set a $230.00 target price on shares of Axsome Therapeutics in a research report on Thursday. Sixteen analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $216.07.

Axsome Therapeutics Trading Down 4.6%

The stock has a 50 day moving average of $173.88 and a 200-day moving average of $144.44. The company has a market capitalization of $8.83 billion, a P/E ratio of -37.52, a P/E/G ratio of 13.22 and a beta of 0.40. The company has a current ratio of 1.57, a quick ratio of 1.50 and a debt-to-equity ratio of 1.66.

Axsome Therapeutics (NASDAQ:AXSM) last issued its quarterly earnings data on Monday, February 23rd. The company reported ($0.56) earnings per share for the quarter, topping the consensus estimate of ($0.70) by $0.14. Axsome Therapeutics had a negative return on equity of 277.31% and a negative net margin of 40.90%.The company had revenue of $196.00 million for the quarter, compared to analysts’ expectations of $191.33 million. The firm’s revenue was up 65.0% compared to the same quarter last year. On average, research analysts predict that Axsome Therapeutics, Inc. will post -2.79 EPS for the current year.

Insider Activity

In other news, insider Ari Maizel sold 7,500 shares of the stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $184.44, for a total transaction of $1,383,300.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Mark E. Saad sold 37,577 shares of the company’s stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $165.18, for a total transaction of $6,206,968.86. Following the sale, the director directly owned 10,002 shares of the company’s stock, valued at $1,652,130.36. The trade was a 78.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 308,874 shares of company stock valued at $51,390,805. 22.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Axsome Therapeutics

A number of large investors have recently bought and sold shares of AXSM. Stanley Laman Group Ltd. acquired a new stake in Axsome Therapeutics during the 3rd quarter valued at approximately $2,125,000. Aberdeen Group plc increased its stake in Axsome Therapeutics by 15.5% during the 3rd quarter. Aberdeen Group plc now owns 94,648 shares of the company’s stock valued at $11,495,000 after buying an additional 12,732 shares during the period. Swiss National Bank boosted its stake in Axsome Therapeutics by 6.9% during the 2nd quarter. Swiss National Bank now owns 65,200 shares of the company’s stock valued at $6,806,000 after purchasing an additional 4,200 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in Axsome Therapeutics by 55.4% during the second quarter. Bank of New York Mellon Corp now owns 203,632 shares of the company’s stock valued at $21,257,000 after purchasing an additional 72,609 shares during the last quarter. Finally, Cabot Wealth Management Inc. purchased a new stake in Axsome Therapeutics during the third quarter valued at about $675,000. 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.