Axsome Therapeutics Stock Price Increases After Analyst Upgrade

Axsome Therapeutics, Inc. (NASDAQ:AXSM) experienced a notable increase in its share price, rising by 5.3% on Monday. This uptick was driven by an upgrade from Truist Financial, which raised its price target for the stock from $150.00 to $180.00. Truist Financial now has a buy rating on Axsome Therapeutics.

During the trading session, Axsome Therapeutics reached a peak price of $84.36 before closing at $84.29. The trading volume was approximately 175,798 shares, which is significantly lower than the average daily volume of 772,864 shares. This decline indicates a reduction in trading activity compared to typical levels. The stock had previously ended the day at $80.05.

Analyst Insights on Axsome Therapeutics

Several other research firms have also provided updates on Axsome Therapeutics. Mizuho cut its target price for the company from $124.00 to $122.00, maintaining an "outperform" rating. HC Wainwright reiterated its "buy" rating in a note to investors, while Cantor Fitzgerald maintained an "overweight" rating with a target price of $121.00. Additionally, StockNews.com upgraded the company's stock from a "sell" to a "hold" rating as of November 20. Royal Bank of Canada also increased its price target from $130.00 to $131.00 and assigned an "outperform" rating on October 4. Currently, one analyst holds a "hold" rating while fourteen have issued buy ratings. According to MarketBeat, the average rating for Axsome Therapeutics is "Moderate Buy," with an average price target of $129.43.

Institutional Investment Trends

Recent modifications in institutional investor holdings of Axsome Therapeutics have also been noted. Rhumbline Advisers increased its stake by 5.1%, bringing its total to 54,931 shares valued at approximately $4.42 million. Arizona State Retirement System increased its holdings by 2.1%, acquiring 8,630 shares valued at around $695,000. WINTON GROUP Ltd significantly increased its position by 156.6%, now owning 8,823 shares worth $710,000. Meanwhile, Sofinnova Investments Inc. made a major investment, buying a stake valued at $24.97 million. XTX Topco Ltd expanded its holdings by 177.9%, acquiring an additional 7,173 shares to reach a total of 11,205 shares, worth about $902,000. Collectively, institutional investors own approximately 81.49% of the company's stock.

Financial Performance and Market Overview

As of now, the market capitalization of Axsome Therapeutics stands at $4.18 billion. The stock has a price-to-earnings (P/E) ratio of -13.21 and a beta of 1.04, which indicates moderate volatility. Financial ratios such as the current ratio and quick ratio are relatively strong at 2.44 and 2.37, respectively, while the debt-to-equity ratio is 1.97. Axsome's 50-day simple moving average is $92.17, and its 200-day simple moving average is $89.16.

In its most recent quarterly earnings report, released on November 12, Axsome reported an EPS of -$1.34, beating analysts' expected loss of -$1.38 per share. The revenue for the quarter was $104.76 million, surpassing the expected $98.71 million. The company has noted a negative net margin of 91.87% and a negative return on equity of 158.36%. For the current fiscal year, analysts predict an EPS of -4.6.

Company Overview

Axsome Therapeutics is a biopharmaceutical company focused on developing innovative therapies for central nervous system (CNS) disorders in the United States. Its key products include Auvelity (dextromethorphan-bupropion), used to treat major depressive disorder, and Sunosi (solriamfetol), which is prescribed for excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea.

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