Stock of the Day

August 16, 2021

Axsome Therapeutics (AXSM)

$204.73
+$6.21 (+3.1%)
Market Cap: $10.74B

About Axsome Therapeutics

Axsome Therapeutics, Inc., a biopharmaceutical company, engages in the development of novel therapies for central nervous system (CNS) disorders in the United States. The company's commercial product portfolio includes Auvelity (dextromethorphan-bupropion), a N-methyl-D-aspartate receptor antagonist with multimodal activity indicated for the treatment of major depressive disorder; and Sunosi (solriamfetol), a medication indicated to the treatment of excessive daytime sleepiness in patients with narcolepsy or obstructive sleep apnea. It is also developing AXS-05, which is in Phase III clinical trial to treat Alzheimer's disease agitation, as well as that has completed phase II clinical trial for the treatment of smoking cessation; AXS-07, an investigational medicine that has completed Phase III trials for the acute treatment of migraine; AXS-12, an investigational medicine, which is in Phase III trial to treat narcolepsy; AXS-14, a selective and potent norepinephrine reuptake inhibitor that has completed Phase III trial for the treatment of fibromyalgia and other conditions; and solriamfetol, a dual-acting dopamine and norepinephrine reuptake inhibitor, which has completed a Phase 2 trial for treating attention-deficit/hyperactivity disorder, and is in phase 2 major depressive, binge eating, and shift work disorder. Axsome Therapeutics, Inc. has a research collaboration agreement with Duke University for evaluating AXS-05 in smoking cessation. The company was incorporated in 2012 and is based in New York, New York.

Today's Trend

Axsome Therapeutics, Inc. (NASDAQ: AXSM) shares have increased modestly, although the latest analyst estimate revisions provide a mixed signal for investors.

  • HC Wainwright maintained its Buy rating on Axsome Therapeutics, signaling continued confidence in the company’s long-term commercial outlook despite lowering its earnings forecasts.
  • The firm continues to project a significant improvement in profitability in 2027, with positive earnings expected beginning in the second quarter and full-year 2027 EPS forecast at $5.25.
  • A report showing zero short interest as of August 25 does not indicate meaningful short-selling pressure, although the data appears inconsistent because it also reports no change from the prior period.
  • HC Wainwright reduced its FY2026 EPS estimate to a loss of $4.10 from a loss of $3.89, while cutting forecasts for third-quarter and fourth-quarter 2026 EPS to losses of $0.95 and $0.91, respectively.
  • The analyst also lowered its 2027 estimates: first-quarter EPS was revised to a $0.27 loss from $0.05 in earnings, second-quarter EPS to $1.06 from $1.30, third-quarter EPS to $1.92 from $2.30, and full-year EPS to $5.25 from $6.47. Fourth-quarter 2027 EPS was reduced to $2.53 from $2.81.

Overall, the retained Buy rating and expectation for a return to profitability may be supporting AXSM. However, the broad downward revisions—particularly the 19% cut to the FY2027 EPS forecast—suggest analysts see slower near-term earnings growth and could limit upside. The company’s current full-year consensus remains a loss of approximately $2.78 per share.

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