Compass Pathways (NASDAQ:CMPS) Price Target Cut to $16.00 by Analysts at Morgan Stanley

Compass Pathways (NASDAQ:CMPS) had its price target decreased by Morgan Stanley from $18.00 to $16.00 in a research report report published on Wednesday,Benzinga reports. Morgan Stanley currently has an overweight rating on the stock.

Several other brokerages also recently weighed in on CMPS. Lifesci Capital upgraded shares of Compass Pathways to a “strong-buy” rating in a report on Thursday, February 12th. Compass Point set a $15.00 price objective on shares of Compass Pathways in a research note on Thursday, February 12th. Canaccord Genuity Group increased their price objective on shares of Compass Pathways from $15.00 to $20.00 and gave the stock a “buy” rating in a research note on Wednesday, February 18th. HC Wainwright raised their target price on shares of Compass Pathways from $40.00 to $70.00 and gave the stock a “buy” rating in a report on Monday, March 2nd. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Compass Pathways in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Compass Pathways currently has a consensus rating of “Moderate Buy” and a consensus price target of $21.88.

Compass Pathways Stock Up 7.7%

Compass Pathways stock opened at $5.62 on Wednesday. The business’s 50-day simple moving average is $6.74 and its two-hundred day simple moving average is $6.30. 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 has a market cap of $539.63 million, a PE ratio of -1.82 and a beta of 1.90. Compass Pathways has a fifty-two week low of $2.25 and a fifty-two week high of $8.90.

Compass Pathways (NASDAQ:CMPS) last announced its quarterly earnings data on Tuesday, March 24th. The company reported ($0.59) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.39) by ($0.20). Equities analysts anticipate that Compass Pathways will post -2.33 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Simplify Asset Management Inc. acquired a new stake in shares of Compass Pathways during the 3rd quarter worth approximately $1,662,000. Jefferies Financial Group Inc. acquired a new position in shares of Compass Pathways in the 3rd quarter valued at $7,890,000. Propel Bio Management LLC acquired a new position in shares of Compass Pathways in the 3rd quarter valued at $2,922,000. Blue Owl Capital Holdings LP boosted its holdings in Compass Pathways by 163.1% during the third quarter. Blue Owl Capital Holdings LP now owns 604,914 shares of the company’s stock worth $3,466,000 after buying an additional 375,000 shares in the last quarter. Finally, ARK Investment Management LLC grew its position in Compass Pathways by 28.6% during the third quarter. ARK Investment Management LLC now owns 2,121,118 shares of the company’s stock valued at $12,154,000 after buying an additional 471,897 shares during the period. 46.19% of the stock is owned by institutional investors and hedge funds.

Compass Pathways News Summary

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

• Positive Sentiment: Morgan Stanley kept an Overweight rating on CMPS while trimming its price target to $16 (from $18). The new target implies roughly a 185% upside from the current price level, which can attract buyers and support upward momentum. Benzinga
• Neutral Sentiment: Company released its fourth-quarter and full-year 2025 results and business highlights via BusinessWire; management emphasized the progress of COMP360 and broader development milestones. The release provides context for results and pipeline progress but did not override the EPS miss. BusinessWire
• Neutral Sentiment: Multiple short-interest reports for March show data anomalies (reported totals of “0 shares” and NaN changes). The reported days-to-cover/short-interest ratio reads as 0.0, which is likely a reporting error rather than a real change in short positioning. Investors should treat these figures cautiously until corrected filings are available. (Sources aggregated)
• Negative Sentiment: Q4 EPS missed consensus: CMPS reported a loss per share of ($0.59) vs. the expected ($0.39), missing by $0.20. An EPS miss typically pressures biotech names, as it raises questions about near-term financial performance and cash runway. Press Release

Compass Pathways Company Profile

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.