March Recap: Largest Psychedelic Stocks DOWN 3.4% In March

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 $75M or more) tracked in our munKNEE Psychedelic Drug Stocks index are ranked below, in descending order, as to:

• their stock performances in March and year-to-date (YTD),
• their likelihood of Financial Distress within the next 2 years according to data from macroaxis.com, and
• their average 12-month Price Targets,
• the extent of Short Interest and
• the degree of Insider Ownership (all as sourced from SeekingAlpha.com) and
• their current Market Capitalization.

1. Compass Pathways (CMPS): UP 7.4% in March; UP 27.1% YTD
   • 12 analysts have:
     • an average year-end price target representing a 318% increase from its March 31st price and
     • a consensus BUY rating,
   • 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),
   • a 42.3% Insider Ownership (directors and senior officers or other beneficial holders with 10% or more of the common shares),
   • a current Market Capitalization of $371M and
   • is primarily focused on the use of psilocybin* (magic mushrooms) in their research. Go here for much more extensive information on Psilocybin.
   • Read: Compass Pathways – Entering A Brave New World
2. Incannex Healthcare (IXHL): UP 14.5% in March; DOWN 22.1% 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 has a current Market Capitalization of $132M.
   • Incannex is a new addition to this index and is not covered by any Wall Street analysts.
   • 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
3. Atai (ATAI): UP 7.7% in March; DOWN 29.8% YTD
   • 14 analysts have:
     • an average year-end price target representing a 556% increase from its March 31st price,
     • a consensus BUY rating;
   • has only a 7% Chance of Financial Distress within 2 years,
   • a Short Interest of 3.1%,
   • only a 0.39% in Insider Ownership,
   • a current Market Capitalization of $207M 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
4. Seelos (SEEL): DOWN 12.7%; UP 6.2% YTD
   • 4 analysts have:
     • an average year-end price target  representing a 661% increase from its March 31st price,
     • a consensus BUY rating and
   • has a 61% Chance of Financial Distress within 2 years,
   • a Short Interest of 5.7%,
   • a 2.8% Insider Ownership,
   • a current Market Capitalization of $80M 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. Mind Medicine (MNMD): DOWN 14.7%; UP 48.8% YTD 
   • 8 analysts have:
     • an average year-end price target of representing a 614% increase from the March 31st price,
     • a consensus BUY rating and
   • has a 54% Chance of Financial Distress within 2 years,
   • a Short Interest of 8.9%,
   • an 11.1% Insider Ownership,
   • a current Market Capitalization of $110M 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 MDMA.
   • Read: MindMed: Researching LSD And MNMA To Treat Neurological Diseases
6. GH Research (GHRS): DOWN 16.6% in March; DOWN 16.2% YTD
   • 6 analysts have:
     • an average year-end price target representing a 376% increase from the March 31st price and
     • a consensus BUY rating,
   • has a 58% Chance of Financial Distress within 2 years,
   • a Short Interest of 7.9%,
   • a 40.4% Insider Ownership,
   • a current Market Capitalization of $425M 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 nick name, “The Toad”,
   • Read: GH Resources: Focus On Treatment-Resistant Depression Paying Off 
7. Cybin (CYBN): DOWN 25.0%; UP 34.5% YTD
   • 5 analysts have:
     • an average year-end price target representing a 1356% increase from its March 31st price,
     • a consensus BUY rating and
   • has a 58% Chance of Financial Distress within 2 years,
   • a Short Interest of 1.9%,
   • a 21.4% Insider Ownership,
   • a current Market Capitalization of $77M 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.
   • Read: Cybin Inc. Was Down 70% In 2022 But Has Bounced Back By 59% YTD – Here’s Why

*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 DOWN 3.4% in March but is still UP 1.2% YTD
• and the average price targets of the above stocks represent an average 372% increase from their March 31st 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 11.3% in March but is still UP 1.1% YTD as compared to the munKNEE Psychedelic Drug Stocks Index featured above.

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