Compass Pathways (NASDAQ:CMPS) Shares Gap Up – Should You Buy?

Compass Pathways PLC Sponsored ADR (NASDAQ:CMPS) gapped up before the market opened on Wednesday . The stock had previously closed at $7.63, but opened at $8.26. Compass Pathways shares last traded at $8.3550, with a volume of 4,915,371 shares trading hands.

More Compass Pathways News

Here are the key news stories impacting Compass Pathways this week:

• Positive Sentiment: Late‑stage (Phase III) COMP360 results met the trial’s primary endpoint—showing statistically significant and rapid reduction in depressive symptoms with durable effects—removing a major clinical risk that had capped valuation upside. Compass Pathways’ depression treatment meets main goal in late‑stage study
• Positive Sentiment: Management and analysts discussed and reinforced the Phase III topline results in conference/transcript coverage, providing detail on magnitude, safety and next regulatory steps—supporting a path toward NDA submission and potential commercial rollout. COMPASS Pathways plc Discusses Positive Phase III Results (Transcript)
• Positive Sentiment: Analysts have an above‑average consensus (reported as “Moderate Buy”), reflecting institutional support for the story now that clinical risk is reduced. COMPASS Pathways Receives Average Rating of “Moderate Buy” from Analysts
• Neutral Sentiment: Market commentary frames the last 48 hours as a classic biotech “binary” event—robust clinical validation followed immediately by a large capital raise; the long‑term thesis shifts from “does it work?” to “can the company execute regulatory and commercial steps.” Magic Mushrooms, Hard Cash: Compass Pathways’ Trial Win, Fast Raise
• Negative Sentiment: Compass launched a proposed $150 million public offering of ADSs (and pre‑funded warrants to certain investors). Equity raises at material sizes can be sharply dilutive and pressure near‑term share price, especially if priced at a discount. Compass Pathways Launches Proposed $150.0 Million Public Offering
• Negative Sentiment: Media coverage flagged an immediate pre‑market pullback tied to the offering announcement—investors “selling the news” after the trial beat as they digest dilution and price uncertainty. CMPS stock slumps premarket as $150M offering cuts into psychedelic trial buzz

Wall Street Analyst Weigh In

CMPS has been the subject of several research analyst reports. Canaccord Genuity Group set a $20.00 price target on shares of Compass Pathways in a research report on Wednesday. Lifesci Capital raised Compass Pathways to a “strong-buy” rating in a research report on Thursday, February 12th. Royal Bank Of Canada increased their price objective on Compass Pathways from $21.00 to $22.00 and gave the stock an “outperform” rating in a research note on Wednesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass Pathways in a report on Wednesday, January 21st. Finally, Morgan Stanley raised their price target on shares of Compass Pathways from $11.00 to $18.00 and gave the stock an “overweight” rating in a report on Wednesday. One 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 assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $17.56.

Compass Pathways Trading Up 7.4%

The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.23 and a current ratio of 1.23. The company’s 50 day moving average is $6.77 and its 200 day moving average is $5.89. The stock has a market capitalization of $786.50 million, a price-to-earnings ratio of -3.02 and a beta of 1.92.

Institutional Investors Weigh In On Compass Pathways

Institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada increased its holdings in shares of Compass Pathways by 49.8% during the first quarter. Royal Bank of Canada now owns 89,446 shares of the company’s stock worth $256,000 after buying an additional 29,733 shares in the last quarter. Acadian Asset Management LLC grew its holdings in shares of Compass Pathways by 42.0% during the first quarter. Acadian Asset Management LLC now owns 240,591 shares of the company’s stock worth $686,000 after purchasing an additional 71,112 shares during the last quarter. Conservest Capital Advisors Inc. increased its stake in shares of Compass Pathways by 32.5% in the second quarter. Conservest Capital Advisors Inc. now owns 20,363 shares of the company’s stock valued at $57,000 after buying an additional 5,000 shares in the last quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd lifted its position in Compass Pathways by 67.0% during the 2nd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 23,842 shares of the company’s stock worth $67,000 after buying an additional 9,569 shares in the last quarter. Finally, Flagship Harbor Advisors LLC grew its holdings in Compass Pathways by 95.0% during the 2nd quarter. Flagship Harbor Advisors LLC now owns 28,171 shares of the company’s stock worth $79,000 after acquiring an additional 13,725 shares during the last quarter. 46.19% of the stock is 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.