Bright Minds Biosciences (NASDAQ:DRUG) Reaches New 12-Month Low – Time to Sell?

by · The Markets Daily

Bright Minds Biosciences Inc. (NASDAQ:DRUG – Get Free Report) hit a new 52-week low during mid-day trading on Monday. The company traded as low as $18.90 and last traded at $26.20, with a volume of 1,823,392 shares trading hands. The stock had previously closed at $54.98.

Key Stories Impacting Bright Minds Biosciences

Here are the key news stories impacting Bright Minds Biosciences this week:

  • Negative Sentiment: The FDA cited toxicity findings in mice, along with insufficient pharmacokinetic and juvenile-toxicity data, in placing the BMB-101-105 study on partial hold. The decision delays development of BMB-101 for developmental and epileptic encephalopathies and raises concerns about the drug’s safety profile. Bright Minds Biosciences Provides Update About Planned Study with BMB-101
  • Negative Sentiment: The hold affects a key clinical program that was intended to evaluate ascending doses of BMB-101 in a randomized, placebo-controlled Phase 2 trial. Bright Minds may need to provide additional studies or data before the trial can proceed, potentially increasing development costs and extending timelines.
  • Negative Sentiment: Levi & Korsinsky announced an investigation into potential claims on behalf of investors who suffered losses. The investigation adds a legal and reputational overhang, although it does not itself change the company’s clinical status. Bright Minds Biosciences Investigation Notice

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on DRUG shares. Oppenheimer downgraded shares of Bright Minds Biosciences to a “market perform” rating in a research note on Thursday, August 20th. Jefferies Financial Group reiterated a “buy” rating on shares of Bright Minds Biosciences in a report on Monday. Wall Street Zen cut Bright Minds Biosciences from a “hold” rating to a “sell” rating in a research report on Saturday, October 3rd. BTIG Research restated a “buy” rating and issued a $37.00 price target on shares of Bright Minds Biosciences in a research note on Monday. Finally, Benchmark reaffirmed a “buy” rating on shares of Bright Minds Biosciences in a research report on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $129.00.

Check Out Our Latest Stock Analysis on Bright Minds Biosciences

Bright Minds Biosciences Trading Down 52.3%

The company has a market cap of $254.93 million, a P/E ratio of -12.60 and a beta of -5.22. The stock’s 50 day moving average is $58.16 and its 200-day moving average is $73.00.

Bright Minds Biosciences (NASDAQ:DRUG – Get Free Report) last announced its quarterly earnings data on Friday, August 14th. The company reported ($0.17) EPS for the quarter, beating the consensus estimate of ($1.22) by $1.05. As a group, sell-side analysts forecast that Bright Minds Biosciences Inc. will post -2.93 EPS for the current year.

Institutional Investors Weigh In On Bright Minds Biosciences

A number of institutional investors have recently made changes to their positions in the company. Orbimed Advisors LLC purchased a new stake in Bright Minds Biosciences during the 1st quarter valued at $2,919,000. Janus Henderson Group PLC raised its stake in shares of Bright Minds Biosciences by 11.1% in the first quarter. Janus Henderson Group PLC now owns 1,284,324 shares of the company’s stock worth $93,518,000 after purchasing an additional 128,329 shares during the last quarter. Vivo Capital LLC raised its stake in shares of Bright Minds Biosciences by 11.1% in the first quarter. Vivo Capital LLC now owns 557,172 shares of the company’s stock worth $40,657,000 after purchasing an additional 55,555 shares during the last quarter. ADAR1 Capital Management LLC raised its stake in shares of Bright Minds Biosciences by 868.6% in the first quarter. ADAR1 Capital Management LLC now owns 33,900 shares of the company’s stock worth $2,474,000 after purchasing an additional 30,400 shares during the last quarter. Finally, Walleye Capital LLC lifted its holdings in shares of Bright Minds Biosciences by 108.0% during the first quarter. Walleye Capital LLC now owns 53,706 shares of the company’s stock valued at $3,919,000 after purchasing an additional 27,880 shares in the last quarter. Hedge funds and other institutional investors own 40.52% of the company’s stock.

About Bright Minds Biosciences

(Get Free Report)

Bright Minds Biosciences Inc is a biotechnology company focused on developing novel treatments for neurological and psychiatric disorders. The company’s research is centered on serotonergic compounds designed to provide therapeutic benefits associated with psychedelic medicines while potentially reducing unwanted effects such as hallucinations and cardiovascular or behavioral complications.

Bright Minds’ pipeline includes BMB-101, a selective serotonin 5-HT2C receptor agonist being developed for conditions including substance use disorders.

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