Compass Pathways (NASDAQ:CMPS) Shares Down 6.9% – Should You Sell?

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS) traded down 6.9% during mid-day trading on Wednesday . The stock traded as low as $7.23 and last traded at $7.4350. 3,884,665 shares traded hands during mid-day trading, an increase of 25% from the average session volume of 3,112,559 shares. The stock had previously closed at $7.99.

Wall Street Analysts Forecast Growth

CMPS has been the subject of a number of recent research reports. Lifesci Capital raised shares of Compass Pathways to a “strong-buy” rating in a research note on Thursday, February 12th. Canaccord Genuity Group lifted their target price on shares of Compass Pathways from $15.00 to $20.00 and gave the stock a “buy” rating in a report on Wednesday, February 18th. Compass Point set a $15.00 target price on shares of Compass Pathways in a research report on Thursday, February 12th. Royal Bank Of Canada increased their price target on Compass Pathways from $21.00 to $22.00 and gave the company an “outperform” rating in a research note on Wednesday, February 18th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Compass Pathways in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $17.56.

Compass Pathways Price Performance

The company’s 50 day simple moving average is $6.91 and its 200 day simple moving average is $6.02. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.23 and a quick ratio of 1.23. The stock has a market cap of $714.39 million, a P/E ratio of -2.74 and a beta of 1.92.

Institutional Trading of Compass Pathways

Hedge funds have recently added to or reduced their stakes in the business. Persistent Asset Partners Ltd bought a new position in Compass Pathways during the fourth quarter worth about $38,000. Advisory Services Network LLC acquired a new stake in shares of Compass Pathways during the third quarter worth about $41,000. China Universal Asset Management Co. Ltd. lifted its holdings in shares of Compass Pathways by 46.7% during the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 18,272 shares of the company’s stock valued at $51,000 after purchasing an additional 5,817 shares in the last quarter. BIT Capital GmbH bought a new position in shares of Compass Pathways during the 3rd quarter valued at about $54,000. Finally, Northeast Financial Consultants Inc acquired a new position in shares of Compass Pathways in the 2nd quarter valued at approximately $59,000. Institutional investors and hedge funds own 46.19% of the company’s stock.

About Compass Pathways

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.