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Down 25% YTD, Should Investors Scoop Up Shares of COMPASS Pathways?

Published 05/19/2021, 09:54 AM
Updated 05/19/2021, 10:31 AM
© Reuters.  Down 25% YTD, Should Investors Scoop Up Shares of COMPASS Pathways?

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.

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