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

The global market for psychedelics is growing at a compound annual growth rate of over 16% and will reach a value of over $6 billion within the next five years, according to a study by Data Bridge Market Research, and the 7 largest psychedelic drug stocks, as tracked in our munKNEE Psychedelic Drug Stocks index, are ranked below, in descending order, as to:

• their stock performances in April and year-to-date (YTD),
• their likelihood of Financial Distress within the next 2 years (Source: macroaxis.com), and
• their average 12-month Price Targets,
• their extent of Short Interest and
• their degree of Insider Ownership (Source: seekingalpha.com) and
• their current Market Capitalizations.

1. Mind Medicine (MNMD): up 20.5% in April; up 75.2% YTD 
   • 8 analysts have:
     • an average 12-month price target representing a 494% increase from its price,
     • a consensus BUY rating and
   • has a 54% Chance of Financial Distress within 2 years,
   • has a Short Interest of 8.1%,
   • has an 11.1% Insider Ownership,
   • has a Market Capitalization of $146M and
   • is primarily focused on the use of LSD* and MNMA*. Go here for much more extensive information on LSD and  here for much more extensive information on MNMA.
   • Read: MindMed: Researching LSD And MNMA To Treat Neurological Diseases
2. Atai (ATAI): up 5.5% in April; still down 26.0% YTD
   • 14 analysts have:
     • an average year-end price target representing a 522% increase from its current price,
     • a consensus BUY rating;
   • has a 7% Chance of Financial Distress within 2 years,
   • has a Short Interest of 3.8%,
   • only has 0.39% in Insider Ownership,
   • has a Market Capitalization of $317M and
   • is primarily focused on the use of ketamine*, DMT* and ibogaine*.  Go here for much more extensive information on Ketamine and here for much more extensive information on DMT.
   • Read: Atai Life Sciences: Long On Money; Short On Success
3. GH Research (GHRS): up 5.1% in April; down 11.9% YTD
   • 6 analysts have:
     • an average 12-month price target representing a 352% increase from its current price and
     • a consensus BUY rating,
   • has a 58% Chance of Financial Distress within 2 years,
   • has a Short Interest of 10.1%,
   • has 40.4% Insider Ownership,
   • has a Market Capitalization of $437M and
   • is primarily focused on the use of mebufotenin*, the new International non-proprietary name for 5-MeO-DMT, which stands for 5-MethOxy-N,N-DiMeThyltryptamine but is better known by its nickname, “The Toad”,
   • Read: GH Resources: Focus On Treatment-Resistant Depression Paying Off 
4. Seelos (SEEL): N/C in April; up 6.2% YTD
   • 4 analysts have:
     • an average 12-month price target  representing a 661% increase from its current price,
     • a consensus BUY rating.
   • has a 61% Chance of Financial Distress within 2 years,
   • has a Short Interest of 5.3%,
   • has a 2.8% Insider Ownership,
   • has a Market Capitalization of $84M and
   • is primarily focused on the use of ketamine*. Go here for much more extensive information on Ketamine.
   • Read: Seelos Addressing Significant And Unmet Needs In Rare Psychiatric And Movement Disorders
5. Incannex Healthcare (IXHL): down 0.9% in April; down 22.9% YTD
   • 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.
   • has a Market Capitalization of $126M.
   • is not covered by any Wall Street analysts, 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
6. Cybin (CYBN): down 10.3% in April; up 20.7% YTD
   • 5 analysts have:
     • an average 12-month price target representing a 1523% increase from its current price [ie from 35 cents to $5ish]
     • a consensus BUY rating and
   • has a 58% Chance of Financial Distress within 2 years,
   • has a Short Interest of 1.9%,
   • has a 21.4% Insider Ownership,
   • has a Market Capitalization of $68M and
   • is primarily focused on the use of DMT* and Psilocybin*. Go here for much more extensive information on DMT and here for much more extensive information on Psilocybin.
7. Compass Pathways (CMPS): down 19.2% in April; still up 2.7% YTD
   • 12 analysts have:
     • an average year-end price target representing a 418% increase from its current price and
     • a consensus BUY rating,
   • has a 30% Chance of Financial Distress within 2 years;
   • has a Short Interest of 17.2% (the number of shorted shares divided by the number of shares outstanding),
   • has 42.3% Insider Ownership (directors and senior officers or other beneficial holders with 10% or more of the common shares),
   • has a Market Capitalization of $364M and
   • is primarily focused on the use of psilocybin* (magic mushrooms) in their research. Go here for much more extensive information on Psilocybin.

*Read 10 Psychedelic Substances And The 36 Companies Researching Them for a description of each of the psychedelic-based compounds mentioned in this article.

In summary:

• the munKNEE Psychedelic Drug Stocks Index:
  • was up 3.1% in April but is still down 1.9% YTD
• the average price targets of the above stocks represent an average 393.1% increase from their April 28th closes.

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 was down 8% in April and is now down 7% YTD as compared to the munKNEE Psychedelic Drug Stocks Index featured above.

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