Axsome Therapeutics, Inc. (NASDAQ:AXSM) reported that its director, Mark E. Saad, sold a significant number of shares in the company. On September 11, 2024, Saad sold 11,016 shares of common stock at an average price of $91.31, totaling approximately $1,005,870.
The transactions were part of a pre-approved trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This type of plan is used by many corporate executives to avoid any accusations of insider trading.
The sale followed an exercise of stock options for the same amount of shares, which were set to expire later in the month. These options were exercised at a price of $3.67 per share, amounting to a total of $40,428.
Following these transactions, Saad's direct holdings in the company decreased to 10,002 shares of common stock. Additionally, the filing noted that Saad indirectly owns 300 shares, which includes shares beneficially owned as custodian for his children's UTMA accounts.
Investors and followers of Axsome Therapeutics, Inc. often monitor insider sales as they may provide insights into how corporate executives view the company's current valuation and future prospects.
In other recent news, Axsome Therapeutics has been the subject of multiple analyst reviews following the FDA's acceptance of the resubmitted New Drug Application for its migraine treatment drug, AXS-07. Mizuho Securities continues to maintain an Outperform rating on Axsome, with confidence in the company's ability to protect its products, Auvelity and Sunosi, from generic competitors. This comes as Axsome anticipates significant Phase 3 data readouts for both products later in the year.
Meanwhile, H.C. Wainwright has maintained a Buy rating on Axsome, projecting that AXS-07 could generate sales of approximately $79 million in 2025. The firm also suggests that AXS-07 could achieve blockbuster status in the late 2020s. BofA Securities upgraded Axsome from Neutral to Buy, while Wells Fargo (NYSE:WFC) initiated coverage on the company with an Overweight rating.
Morgan Stanley (NYSE:MS) has also maintained an Overweight rating on Axsome shares, highlighting the successful commercial progression of Auvelity, Axsome's treatment for major depressive disorder. RBC Capital maintained an Outperform rating on Axsome, noting continued growth for Auvelity and upcoming significant events for the company. Lastly, Citi reaffirmed its Buy rating on Axsome, reflecting the potential of Axsome's drug for Alzheimer's disease agitation, AXS-05, and the commercial prospects of its treatments in development. These are recent developments in the company's journey.
InvestingPro Insights
As Axsome Therapeutics, Inc. (NASDAQ:AXSM) navigates the market following the insider sale by director Mark E. Saad, it's important to consider the company's financial health and stock performance. According to InvestingPro data, Axsome has a market capitalization of $4.36 billion. The company has been experiencing robust revenue growth, with a remarkable increase of 59.73% over the last twelve months as of Q2 2024. Notably, the gross profit margin during the same period is an impressive 90.3%, underscoring the company's ability to maintain profitability at the gross level.
Despite this strong revenue growth and gross profitability, analysts are cautious about the company's near-term earnings prospects. According to InvestingPro Tips, 12 analysts have revised their earnings estimates downwards for the upcoming period. This suggests that while the company's gross profit margins are solid, there may be challenges ahead that could impact net profitability. Additionally, the same tips indicate that Axsome is not expected to be profitable this year, which is consistent with the adjusted P/E ratio of -16.13, reflecting investor expectations of future losses.
From a stock performance perspective, Axsome has seen a strong return over the last three months, with a price total return of 28.08%. The stock is also trading near its 52-week high, at 92.51% of that value. This could indicate investor confidence in the company’s long-term potential despite short-term earnings concerns. For investors interested in further analysis and metrics, there are additional InvestingPro Tips available at https://www.investing.com/pro/AXSM, offering deeper insights into Axsome's financial health and stock performance.
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