Herriot Tabuteau, CEO of Axsome Therapeutics, Inc. (NASDAQ:AXSM), executed a significant transaction on January 5, 2024, selling 78,703 shares of the company’s stock. The shares were sold at an average price of $171.28, totaling approximately $13,480,249.84. Following this sale, Tabuteau now directly owns 7,229 shares, valued at about $1,238,183.12, indicating a substantial 91.59% decrease in his ownership of the stock.
This trade was disclosed through a legal filing with the U.S. Securities and Exchange Commission (SEC). It highlights significant movements within the company as it continues to navigate the challenges of the biopharmaceutical landscape.
Stock Performance and Market Analysis
On the trading day following Tabuteau’s sale, shares of Axsome Therapeutics saw a decline of $1.19, bringing the stock price down to $170.69. The trading volume was recorded at 814,950 shares, which is below the average volume of 1,023,813 shares. The stock has experienced a 12-month low of $79.19 and a high of $184.40.
Axsome Therapeutics has a market capitalization of $8.60 billion, with a current ratio of 1.57, a quick ratio of 1.50, and a debt-to-equity ratio of 1.66. Its price-to-earnings (P/E) ratio stands at -36.55, indicating that the company is not currently profitable, and its price-to-earnings-growth (PEG) ratio is 11.99. The stock’s beta of 0.44 suggests lower volatility compared to the broader market.
Analyst Ratings and Institutional Investment
Recent analysts’ reports have provided varied perspectives on Axsome Therapeutics. Royal Bank of Canada raised its price target for the stock from $189.00 to $198.00, assigning it an “outperform” rating. Similarly, Morgan Stanley reaffirmed an “overweight” rating in a research note dated December 31, 2023. In contrast, Weiss Ratings assigned a “sell (d-)” rating, reflecting some skepticism about the company’s future performance.
According to data from MarketBeat, Axsome currently holds an average rating of “Moderate Buy,” with a consensus price target of $191.88. The stock has garnered one “Strong Buy” rating, eighteen “Buy” ratings, and one “Sell” rating from various analysts.
Institutional investors have also been active in adjusting their stakes in Axsome Therapeutics. Allworth Financial LP increased its stake by 6.6% in the third quarter, now owning 1,442 shares worth $175,000. Other firms, including Moors & Cabot Inc. and Meridian Wealth Management LLC, have also made modest increases in their holdings, contributing to the overall institutional ownership which now stands at 81.49% of the company’s stock.
Axsome Therapeutics, Inc. is a clinical-stage biopharmaceutical company that focuses on developing innovative therapies for central nervous system (CNS) disorders. The company’s pipeline includes several late-stage and approved product candidates aimed at addressing significant unmet medical needs in conditions such as depression, migraine, narcolepsy, and fibromyalgia.
This recent transaction by CEO Tabuteau and the ongoing market analysis underscores the dynamic nature of Axsome Therapeutics as it continues to evolve in a competitive industry.
