Healthcare companies are continuously looking for new treatment options for patients. One in particular, COMPASS Pathways (CMPS), is focused on using psilocybin therapy treat depression. The stock has generated a lot of interest, but is down 25% for the year. Is it time to buy? Read more to find out.COMPASS Pathways (CMPS) is a mental healthcare business based in London, UK. However, CMPS principally operates in New York. CMPS is down nearly 30% year to date, presenting a potentially lucrative entry point for investors who have been waiting to establish a position in the stock.
CMPS was trading in the mid-$30s in April, then jumped up to $39 on April 27. Profit-taking caused the stock to drop to $35 the next day. However, CMPS bounced right back to life, returning to $38.96 one day later. Unfortunately, CMPS has stagnated in the weeks since, trading between $36 and $32.
Is CMPS a Buy now that it has declined more than 25% since the start of the new year? Let's find out.