Axsome Therapeutics Inc. (NASDAQ: AXSM) stock fell -0.92% on Monday to $74.57 against a previous-day closing price of $75.26. With 1.03 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.87 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $74.89 whereas the lowest price it dropped to was $72.16. The 52-week range on AXSM shows that it touched its highest point at $91.29 and its lowest point at $38.87 during that stretch. It currently has a 1-year price target of $116.73. Beta for the stock currently stands at 1.88.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AXSM was down-trending over the past week, with a drop of -7.48%, but this was up by 7.68% over a month. Three-month performance dropped to -12.27% while six-month performance rose 18.86%. The stock gained 20.88% in the past year, while it has lost -3.32% so far this year. A look at the trailing 12-month EPS for AXSM yields -4.28 with Next year EPS estimates of -2.54. For the next quarter, that number is -1.20. This implies an EPS growth rate of -32.80% for this year and 37.70% for next year.
Float and Shares Shorts:
At present, 43.67 million AXSM shares are outstanding with a float of 38.81 million shares on hand for trading. On Aug 30, 2023, short shares totaled 8.24 million, which was 17.46% higher than short shares on Jul 30, 2023. In addition to Dr. Herriot Tabuteau M.D. as the firm’s Founder, Chairman, CEO & Pres, Mr. Nick Pizzie CPA, M.B.A. serves as its Chief Financial Officer.
Through their ownership of 70.65% of AXSM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.17% of AXSM, in contrast to 24.21% held by mutual funds. Shares owned by individuals account for 19.34%. As the largest shareholder in AXSM with 9.08% of the stake, RTW Investments LP holds 4,284,277 shares worth 4,284,277. A second-largest stockholder of AXSM, The Vanguard Group, Inc., holds 3,646,135 shares, controlling over 7.73% of the firm’s shares. Fairmount Funds Management LLC is the third largest shareholder in AXSM, holding 2,344,980 shares or 4.97% stake. With a 2.46% stake in AXSM, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 1,159,282 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.06% of AXSM stock, is the second-largest Mutual Fund holder. It holds 970,960 shares valued at 78.45 million. iShares Russell 2000 ETF holds 1.56% of the stake in AXSM, owning 736,415 shares worth 59.5 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, AXSM reported revenue of $8.82M and operating income of -$40.04M. The EBITDA in the recently reported quarter was -$38.77M and diluted EPS was -$1.06.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AXSM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AXSM analysts setting a high price target of $180.00 and a low target of $84.00, the average target price over the next 12 months is $115.88. Based on these targets, AXSM could surge 141.38% to reach the target high and rise by 12.65% to reach the target low. Reaching the average price target will result in a growth of 55.4% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded AXSM stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 1 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 17,501 while 0 shares were sold.