Axsome Therapeutics, Inc. (AXSM) Stock: Is This Biotech Stock Worth Your Consideration?

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Axsome Therapeutics, Inc. (AXSM) is working its way for to the top in the market in today’s trading session. The company, one that is focused on the biotechnology sector, is currently priced at $27.64 after heading up 8.78% so far today. In terms of biotechnology companies, there are a number of factors that have the ability to generate movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines surrounding AXSM:

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Aug-12-19 02:27PM Edited Transcript of AXSM earnings conference call or presentation 8-Aug-19 12:00pm GMT
Aug-09-19 11:52AM Axsome Therapeutics, Inc. (AXSM) Q2 2019 Earnings Call Transcript
Aug-08-19 07:00AM Axsome Therapeutics Reports Second Quarter 2019 Financial Results and Provides Business Update
Jul-30-19 07:00AM Axsome Therapeutics To Report Second Quarter 2019 Financial Results On August 8, 2019
Jul-29-19 07:00AM Axsome Therapeutics Amends Silicon Valley Bank Loan Agreement Increasing Financial Flexibility

However, when making a decision with regard to investing, prospective investors should take a look at much more than just news, this is especially the case in the generally speculative biotech industry. Here’s what’s going on with Axsome Therapeutics, Inc..

Recent Moves From AXSM

Although a gain in a single session, like what we’re seeing from Axsome Therapeutics, Inc. may lead to excitement in some investors, a single session gain alone should not be the reason for a decision to, or not to, buy a company’s stock. It’s always smart to look at trends further out than a single session. As it relates to AXSM, here are the returns that we’ve seen:

  • Weekly – In the last week, AXSM has produced a change in price in the amount of 11.99%.
  • Past 30 Days – The performance from Axsome Therapeutics, Inc. throughout the last 30 days comes to 6.31%.
  • Past Quarter – In the past quarter, the company has produced a return that comes to 27.14%
  • Past Six Months – Throughout the previous six months, investors have seen a performance that equates to 201.75% from the stock.
  • Year To Date – Since the open of this year AXSM has generated a return on investment of 880.14%.
  • Annually – Finally, throughout the last year, we’ve seen performance amounting to 1028.16% out of AXSM. Throughout this period of time, the stock has traded at a high of -3.68% and a low price of 1324.74%.

Rations That You Should Look Into

Looking at various key ratios having to do with a company generally gives prospective investors an understanding of how dangerous and/or rewarding a an investment option may be. Below are a few of the key ratios to consider when digging into AXSM.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the price of the stock is headed for declines. Across the sector, biotechnology stocks can carry a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the industry. Nonetheless, when it comes to Axsome Therapeutics, Inc., the stock’s short ratio clocks in at 5.58.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure If a company is able to cover its debts as they mature using quick assets or current assets. Because many biotech many companies are heavily reliant on the continuation of investor support, these ratios can seem damning. Nonetheless, some gems in the biotechnology space come with positive current and quick ratios. As it relates to AXSM, the quick and current ratios total up to 4.20 and 4.20 respectively.  

Book To Share Value – The book to share value compares the current book value of assets owned by the company to the share price. In the case of Axsome Therapeutics, Inc., that ratio equates to 0.72.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the value of the company’s stock. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a stock in the biotechnology industry, this is a very important ratio to look into. In this case, the cash to share value works out to 1.61.

Analyst Opinions Of Axsome Therapeutics, Inc.

While it’s never a smart idea to blindly follow the opinions of analysts, it is a smart idea to consider their thoughts in order to validate your own thoughts when it comes to making an investment decision in the biotechnology industry. Below are the most recent moves that we have seen from analysts as it relates to AXSM.

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May-28-19 Initiated SunTrust Buy
May-23-19 Reiterated H.C. Wainwright Buy $23 → $30
Apr-08-19 Initiated SVB Leerink Outperform $25
Mar-15-19 Reiterated H.C. Wainwright Buy $15 → $18
Oct-03-16 Resumed Brean Capital Buy

Show Me The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in AXSM, here’s what we’re seeing:

  • Institutions – At the moment, institutional investors own 47.10% of the company. On the other hand, it is important to mention that institutional ownership has seen a move in the amount of 5.82% in the last quarter.
  • Insiders – as it relates to insiders, those close to the company currently hold 2.20% of the company. Insider ownership of the company has seen a change of 5.27% throughout the last quarter.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 33.36M shares of Axsome Therapeutics, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, AXSM has a float of 24.15M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to AXSM, the short percent of the float is 25.78%.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.27. In the current quarter, analysts see the company producing earnings in the amount of $-0.39. Over the last 5 years, AXSM has generated revenue in the amount of $0 with earnings coming in at -56.60%. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of 0.

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