How to Buy Compass Pathways Stock [2024]

Summary: Compass Pathways, a psychedelic-based therapy provider, is publicly listed on the NASDAQ with the ticker CMPS. In this guide, you will learn how to buy Compass Pathways stock with online brokers like eToro.

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About Compass Pathways

Compass Pathways’ homepage. Source: Compasspathways.com

Compass Pathways (NASDAQ: CMPS) is a London-based mental healthcare company focused on developing and commercializing psychedelic-based therapies. The company is behind the development of COMP360 (a synthetic form of psilocybin), a potential treatment for treatment-resistant depression, as well as anxiety, addiction, and other mental illnesses, when administered with psychological guidance from specially-trained therapists.

Notably, the company’s phase 2b randomized controlled study with 233 patients across 22 locations evaluating COMP360 in treatment-resistant depression was the most extensive psilocybin clinical trial to date. It also reported that a singular 25mg dose of COMP360 psilocybin, combined with psychological support, resulted in a significant decline in depressive symptoms after just three weeks (p<0.001), with the positive effect remaining for as long as 12 weeks.

Compass Pathways is publicly listed on the Nasdaq Exchange under the stock ticker CMPS.

How to buy Compass Pathways stock: Step-by-step process

Follow these four steps to buy Compass Pathways stock:

Select an online broker;
Register with your chosen broker and deposit funds to your account;
Buy CMPS stock;
Periodically monitor your position in the company and adjust your holdings accordingly.

Step 1: Choose a broker

To buy Compass Pathways stock, you’ll first need to select a trusted and regulated online broker.

From our assessment, eToro stands out as the best choice for investing in CMPS and will offer you the following:

Commission-free stock trading;
2,000+ stocks from 17 exchanges;
Fractional shares available;
User-friendly platform.

Highly Rated Stock Trading & Investing Platform

Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
Copy top-performing traders in real time, automatically.
eToro USA is registered with FINRA for securities trading.

30+ million Users

Get Started

In the rapidly emerging landscape of psychedelic medicine, savvy investors will diversify their focus beyond a single entity, aiming to harness the expansive promise of the entire sector. Here are five other psychedelic stocks you might want to consider, each offering a distinct facet of the industry:

Cybin (NYSE: CYBN);
Seelos Therapeutics (NASDAQ: SEEL);
GH Research (NASDAQ: GHRS);
Numinus Wellness (TSX: NUMI);
Mind Medicine (NASDAQ: MNMD).

How to choose the best online broker?

When assessing brokers, take into account the following factors:

Available products: Ensure the broker provides access to the Nasdaq Exchange and, specifically, CMPS;
Pricing: Familiarize yourself with their fee structure, including commissions, spreads, fees for inactivity or account maintenance, and be wary of any concealed charges;
Regulatory compliance and security: Confirm the broker is overseen by the relevant regulatory agencies and has robust security measures in place to safeguard both your personal data and investments;
Fractional share trading: Verify if the broker permits buying stocks in fractional amounts. This feature can be invaluable for investors with a limited budget or those planning to employ a dollar-cost averaging approach.

Step 2: Open and fund your account

Once you’ve made your choice, navigate to the broker’s official website or mobile app. Click on the ‘Open an Account’ or similar prompt. You’ll be guided through a series of steps requiring you to provide personal information such as your name, address, social security number, employment details, and financial background.

After verification, you’ll need to fund your account. Most brokers provide multiple deposit options, including bank transfers, wire transfers, credit/debit card payments, and third-party payment services like PayPal (PYPL). Choose your preferred method and transfer the desired amount. Some brokers may have a minimum deposit requirement, so be sure to check that beforehand.

With your account funded, you are ready to begin investing.

Step 3: Place your order and invest in CMPS

Place your order by following these simple steps:

Step 1: Locate Compass Pathways by using its ticker symbol CMPS;
Step 2: Decide on the order type. The two most common options available to you will be a market order, filled immediately, or a limit order, fulfilled at your predetermined price point;
Step 3: Decide how much you want to invest, whether by the dollar amount or by the number of shares;
Step 4: Before clicking ‘Buy’ or ‘Open Trade,’ review all order details to ensure they’re correct. Once satisfied, proceed to submit the order to your broker for execution.

Step 4: Monitor your investment

After investing in Compass Pathways, keeping an eye on your position is pivotal. While daily check-ins aren’t required, a regular review ensures you remain aligned with your financial goals. Here’s a concise guide to monitoring your investment:

Company updates Review Compass Pathways’ ‘Investor Relations’ section for news. Setting up Google Alerts for “Compass Pathways” can also keep you informed;
Brokerage tools: Use the analytical tools provided by your broker to track stock performance, offering charts and key indicators;
Sector trends: Stay updated about the broader psychedelics and pharmaceutical sectors, influencing Compass Pathways’ performance;
Review financials: Skim through quarterly and annual reports for insights on company earnings, costs, and future directions;
Set price alerts: Use your brokerage platform to set price alerts for Compass Pathways to stay informed about significant price changes;
Stay educated: Dedicate some time to stay updated about the evolving psychedelic medicine landscape.

Compass Pathways stock price today

Pros and cons of investing in Compass Pathways

Pros

Innovative approach: Compass Pathways is at the forefront of psychedelic research, specifically utilizing psilocybin for treatment-resistant depression;
Clinical progress: The company has advanced its psilocybin therapy into Phase 2b clinical trials, showing a commitment to rigorous scientific validation;
Growing acceptance: There’s a growing societal acceptance and interest in psychedelic therapies for mental health, which could position Compass Pathways favorably;
First-mover advantage: Being one of the first companies to advance psychedelic treatments through regulatory pathways could give them a competitive edge;
Addressing a major concern: Treatment-resistant depression affects millions globally, representing a significant market potential.

Cons

Regulatory hurdles: Psychedelic substances face significant regulatory scrutiny. Even if clinical trials are successful, there’s no guarantee of regulatory approval;
Market acceptance: There might be reluctance from practitioners or patients to adopt psychedelic therapies, given the historical stigma;
Competition: While the company has a first-mover advantage, the field is attracting more competitors as the potential of psychedelics becomes more apparent;
Profitability: As with many biotech companies, Compass Pathways isn’t yet profitable, and there’s always risk involved in whether it can successfully commercialize its treatments;
Share dilution: To fund research and operations, the company might issue more shares, which can dilute the value for existing shareholders.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy Compass Pathways stock

When was Compass Pathways IPO?

Compass Pathways went public through an initial public offering (IPO) in September 2020.