An Update On The Performance Of The 7 Largest Psychedelic Stocks

TM Editors Note: This article mentions one or more penny stocks/microcaps. Such stocks are easily manipulated; do your own careful due diligence.

According to a study by Data Bridge Market Research, the global market for psychedelics is growing and will reach a value of over $6 billion within the next five years, compared to $2 billion in 2019. This represents a compound annual growth rate of over 16% for the industry.

The 7 largest psychedelic drug stocks (market caps of $70M or more) tracked in the munKNEE Psychedelic Drug Stocks index are ranked below in descending order as to their stock performances since the beginning of March (MTD) and year-to-date (YTD), their likelihood of Financial Distress within the next 2 years according to data from macroaxis.com, their average 12-month Price Targets as provided by stockanalysis.com, and the extent of excessive Short Interest and high Insider Ownership.

Compass Pathways (CMPS): UP 1.0% MTD; UP 6.7% YTD
- 18 analysts have:
  - an average year-end price target of $42.38 representing
  - a 409% increase from the March 17th price of $8.33 and
  - a consensus BUY rating and, according to an analysis by macroaxis.com,
- Compass has a 30% Chance of Financial Distress within 2 years;
- a Short Interest of 34.0% (the number of shorted shares divided by the number of shares outstanding); and
- 40.4% Insider Ownership.(directors and senior officers or other beneficial holders with 10% or more of the common shares)
- Read: Compass Pathways - Entering A Brave New World
Seelos (SEEL): DOWN 16.5% MTD; UP 1.5% YTD
- 10 analysts have:
  - an average year-end price target of $6.38 representing
  - a 867% increase from the March 17th price of $0.66 and
  - a consensus BUY rating and, according to an analysis by macroaxis.com;
- has a 61% Chance of Financial Distress within 2 years;
- Read: Seelos Addressing Significant And Unmet Needs In Rare Psychiatric And Movement Disorders
GH Research (GHRS): Down 19.4% last week; Down 19.1% in last 6 weeks
- 12 analysts have:
  - an average year-end price target of $38.76 representing
  - a 348% increase from the March 17th price of $7.72 and
  - a consensus BUY rating and, according to an analysis by macroaxis.com;
- has a 58% Chance of Financial Distress within 2 years; and
- has Insider Ownership of 40.4%
- Read: GH Resources: Focus On Treatment-Resistant Depression Paying Off
Incannex Healthcare (IXHL): DOWN 22.0% MTD; DOWN 28.6% YTD
- Incannex engages in the research, development, and sale of medicinal cannabinoid and psychedelic pharmaceutical products and therapies and has the largest portfolio of such products an therapies worldwide with a potential global addressable market for all Incannex' products under development exceeds $400B per annum.
- Incannex is a new addition to this index and is not covered by any Wall Street analysts or macroaxis.com.
- The Company is headquartered in Australia and trades on the Australian Stock Exchange (ASX) and the Nasdaq.
- Read: Incannex Healthcare Has World's Largest Pipeline Of Psychedelic Products
Mind Medicine (MNMD): DOWN 22.0% MTD; UP 33.0% YTD
- 7 analysts have:
  - an average year-end price target of $61.20 representing
  - a 2010% increase from the March 17th price of $2.90 and
  - a consensus BUY rating and, according to an analysis by macroaxis.com;
- has a 56% Chance of Financial Distress within 2 years;
- Read: MindMed: Researching LSD And MNMA To Treat Neurological Diseases
Cybin (CYBN): DOWN 25.0% MTD; UP 34.5% YTD
- 11 analysts have:
  - an average year-end price target of $4.46 representing
  - a 1044% increase from the March 17th price of $0.39 and
  - a consensus BUY rating and, according to an analysis by macroaxis.com;
- has a 56% Chance of Financial Distress within 2 years;
- Read: Cybin Inc. Was Down 70% In 2022 But Has Bounced Back By 59% YTD - Here's Why
Atai (ATAI): DOWN 27.4% MTD; DOWN 52.7% YTD
- 20 analysts have:
  - an average year-end price target of $13.99 representing
  - a 1047% increase from the March 17th price of $1.22 and
  - a consensus BUY rating and, according to an analysis by macroaxis.com;
- has a 56% Chance of Financial Distress within 2 years;
- Read: Atai Life Sciences: Long On Money; Short On Success

In summary:

the munKNEE Psychedelic Drug Stocks Index:
- is DOWN 14.3% MTD and DOWN 10.2% YTD
the price targets for the above stocks represent a 620% increase from their March 17th close.

If you are interested in this category of clinical-stage psychedelic compound-based stocks consider the AdvisorShares Psychedelic ETF (PSIL) that consists of 23 such stocks but keep in mind that the vast majority have market capitalizations of $50M or less (i.e. are nano-caps). It is DOWN 15.5% MTD and DOWN 3.3% YTD as compared to the munKNEE Psychedelic Drug Stocks Index featured above.

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