Axsome Stock Hits New High After FDA Nod

Axsome's AXS-05 depression drug received breakthrough designation status

Biopharmaceutical concern Axsome Therapeutics Inc (NASDAQ:AXSM) is hot today, on news the U.S. Food and Drug Administration (FDA) gave the company's AXS-05 major depressive disorder (MDD) treatment "breakthrough therapy" status. The designation was sparked by the treatment's successful Phase 2 ASCEND study results.

Now up 484.3% year-to-date, AXSM stock has been soaring since that positive drug data sent the shares up 161.2% on Jan. 7. While the equity briefly pulled back to its 40-day moving average in late February, it has since more than doubled. What's more, Axsome stock just hit a new all-time high of $16.80 earlier, last seen up 9.2% at $15.66.

Analysts are resoundingly optimistic on ASXM. Currently, the stock holds three "strong buy" ratings. Plus, the consensus 12-month target price of $27 is at a 72.4% premium to current levels.

Short sellers, on the other hand, have ramped up their bearish exposure to the equity. Short interest rose 40.5% in the last two reporting periods, and now represents 15.2% of the stock's available float. It would take almost a week to buy back these pessimistic positions at AXSM's daily trading volume, leaving plenty of room for a short squeeze.