May 16, 2023 – SG Americas Securities LLC, a legal entity that engages in brokerage and investment banking services, sold 87.7% of its holdings in the shares of the pharmaceutical company Axsome Therapeutics, Inc. (NASDAQ:AXSM). According to a recent securities filing submitted to the Securities and Exchange Commission (SEC), the fund owned only 1,708 shares of Axsome Therapeutics after divesting its businesses from 12,154 shares during Q4.
The decision to cut holdings comes as no surprise since many other funds have been modifying their positions on investment equities amidst the ongoing volatility and risks across markets today. Nonetheless, SG Americas Securities’ move signals more than just routine trend following or market timing; instead, it poses a significant challenge to investors in Axsome Therapeutics who have been bullish about the prospects of this innovative drug development company over recent years.
Axsome Therapeutics has been gaining momentum for quite some time now due to its innovative approaches to addressing medical conditions that previously lacked effective therapeutic options. Among their most promising drugs is AXS-05 – an oral NMDA receptor antagonist that could potentially treat several indications such as major depressive disorder (MDD) and treatment-resistant depression (TRD). Additionally, AXS-07 – another drug candidate by Axsome therapeutics – has demonstrated promising safety and efficacy results for acute migraine therapy.
Despite these promising developments by Axsome Therapeutics, SG Americas Securities’ sale off of most of its holdings sends out signals of caution. While there are multiple speculative explanations for such moves by institutional investors, such a massive cost reduction can likely be attributed to concerns over future performance or earnings declines for a given company’s business unit.
Investors are advised to approach any further dealings with companies such as Axsome Therapeutics with care, especially regarding stocks that may hold advanced potential but may also prove more vulnerable against swings in capital flows throughout ongoing market turbulence. While Axsome Therapeutics Inc. remains a leading pharmaceutical contender with several promising drug candidates, it is essential to note that any investment carries risks that should be coherently dissected and analyzed to mitigate potential losses.
[bs_forecast_slider ticker=”AXSM”]
Axsome Therapeutics’ Favorable Results Draws Attention from Institutional Investors and Research Firms Alike
Axsome Therapeutics is a clinical-stage biopharmaceutical company that is specializing in developing solutions for areas with significant unmet medical needs such as neurological and psychiatric conditions. The company’s research has shown favorable results in their upcoming medications, leading to several investors taking an interest in the business. This includes hedge funds and other institutional investors that own 59.71% of the stock, some of which have increased their stakes in the company recently.
ProShare Advisors LLC, for instance, increased its holdings by 15.7% during the fourth quarter of the previous year, now owning over 7,700 shares of Axsome Therapeutics’ stocks worth approximately $595,000 after purchasing an additional 1k shares during this time. Legato Capital Management LLC also purchased a new position back then valued at around $542K.
Several other investors also bought into Axsome Therapeutics amid promising research outcomes. Profund Advisors LLC purchased new stakes worth $240K in Q4 last year while Janney Montgomery Scott LLC made an acquisition worth approximately $216K.
New York State Common Retirement Fund grew its stake by over 40% during the same period to currently hold roughly 30k shares valued at about $2.3 million today.
The company’s performance is not only attracting institutional investors but also catching attention from various research firms who followed their progress closely and weighed in on their rating for AXSM stock.
HC Wainwright rated it as “buy” with a price objective of $200 per share while Bank of America reaffirmed AXSM’s status as “underperform,” setting a target price of $52 per share. Morgan Stanley boosted their price target from $83 to $87 per share while Guggenheim raised theirs to a range between $90-100 per share. StockNews.com even upgraded Axsome Therapeutics’ rating from “sell” to “hold.”
Bloomberg.com reported that they now had a consensus rating of “Moderate Buy” with a target price of $105.57 per share.
The market for neurological and psychiatric solutions is massive, with millions afflicted worldwide. And Axsome Therapeutics is one of the few pharmaceutical companies at the forefront of research in this field. Therefore, it’s no surprise that institutional investors are keeping an eye on their progress. As research yields promising results, we can expect AXSM stock to continue attracting investments increasingly in the future, creating further excitement among investors and healthcare professionals alike.
