Compass Pathways (NASDAQ:CMPS) Issues Earnings Results

Compass Pathways (NASDAQ:CMPS) posted its quarterly earnings data on Wednesday. The company reported ($1.88) earnings per share (EPS) 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 Trading Up 12.8%

Shares of CMPS traded up $1.51 during midday trading on Wednesday, reaching $13.31. The company had a trading volume of 5,326,114 shares, compared to its average volume of 3,737,054. Compass Pathways has a 1-year low of $3.97 and a 1-year high of $15.40. 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 firm has a 50 day simple moving average of $12.51 and a 200-day simple moving average of $9.22. The stock has a market cap of $1.80 billion, a PE ratio of -4.22 and a beta of 2.50.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. BTIG Research lifted their price objective on Compass Pathways from $14.00 to $25.00 and gave the stock a “buy” rating in a report on Tuesday, July 7th. UBS Group set a $18.00 price target on Compass Pathways in a research note on Thursday, May 7th. Morgan Stanley reiterated an “overweight” rating and set a $17.00 price target on shares of Compass Pathways in a research report on Tuesday, July 7th. Wolfe Research reaffirmed an “outperform” rating on shares of Compass Pathways in a research note on Tuesday, July 7th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass Pathways in a research report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Compass Pathways presently has a consensus rating of “Moderate Buy” and an average price target of $23.36.

Institutional Investors Weigh In On Compass Pathways

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Corient Private Wealth LLC boosted its holdings in Compass Pathways by 3.2% in the 4th quarter. Corient Private Wealth LLC now owns 38,438 shares of the company’s stock valued at $265,000 after purchasing an additional 1,200 shares during the last quarter. Conservest Capital Advisors Inc. raised its position in shares of Compass Pathways by 24.6% during the 4th quarter. Conservest Capital Advisors Inc. now owns 25,363 shares of the company’s stock valued at $175,000 after buying an additional 5,000 shares during the period. Persistent Asset Partners Ltd acquired a new position in Compass Pathways in the fourth quarter valued at approximately $38,000. Raymond James Financial Inc. grew its position in Compass Pathways by 82.7% in the third quarter. Raymond James Financial Inc. now owns 13,763 shares of the company’s stock worth $79,000 after acquiring an additional 6,228 shares during the period. Finally, Advisory Services Network LLC purchased a new position in Compass Pathways in the third quarter worth approximately $41,000. 46.19% of the stock is currently owned by institutional investors and hedge funds.

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.