Cognition Therapeutics (CGTX) AI Stock Analysis

• Market Cap: $33.00M
• Dividend Yield: N/A
• Average Volume (3M): 3.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: N/A
• EPS Growth: -0.38%
• Country: US
• Employees: 25
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 61,993,046
• 10 Day Avg. Volume: 7,640,069
• 30 Day Avg. Volume: 3,826,514
• PEG Ratio: -0.76
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.26
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 27.95
• Enterprise Value/Gross Profit: -310.42
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: $3.00
• Price Target Upside: 328.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ―

Cognition Therapeutics is currently facing major financial challenges with persistent losses and cash flow issues. Technical indicators provide mixed signals with short-term momentum but long-term caution. Valuation remains a concern with negative earnings and no dividend yield. Although the earnings call highlighted some strategic progress, significant concerns like NASDAQ compliance and uncertain funding overshadow these advancements. Overall, the stock is a high-risk investment with potential for future improvement if financial and strategic objectives are met.

Positive Factors

Clinical trial progress

Cognition Therapeutics announced that the Phase 2 ‘START’ Study had surpassed 50% enrollment.

Market potential

DLB could represent a blockbuster or near-blockbuster indication, with roughly $1B in peak annual sales for zervimesine in the U.S. alone.

Regulatory milestones

Receipt of Breakthrough Therapy Designation status in DLB for zervimesine and confirmation that a single pivotal trial would be sufficient for regulatory submission are seen as meaningful inflection points.

Negative Factors

Equity dilution

Lowering the 12-month price target to $3 from $5 reflects anticipated equity dilution.

Financial outlook

Cognition Therapeutics ended 1Q25 with ~$16.4M in cash, which is sufficient to fund operations only into late 2025.

Cognition Therapeutics Business Overview & Revenue Model

Company Description

Cognition Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of small molecule therapeutics targeting age-related degenerative diseases and disorders of the central nervous system and retina. Its lead product candidate is CT1812, a sigma-2 receptor antagonist, which is in Phase II clinical trial for the treatment of mild-to-moderate Alzheimer's disease, as well as has completed Phase I clinical trial to treat early-stage Alzheimer's disease; in Phase II clinical trial for the treatment of dementia with Lewy bodies (DLB); and in preclinical trial to treat dry age-related macular degeneration (AMD). The company is also developing CT2168 for the treatment of synucleinopathies, which include DLB and Parkinson's disease; and CT2074 to treat dry AMD. Cognition Therapeutics, Inc. was incorporated in 2007 and is headquartered in Purchase, New York.

How the Company Makes Money

Cognition Therapeutics makes money primarily through the development and eventual commercialization of its pharmaceutical products. The company generates revenue by advancing its drug candidates through clinical trials, aiming for successful regulatory approval, which can lead to product sales, licensing agreements, or partnerships with larger pharmaceutical companies. These collaborations can result in milestone payments, royalties, and upfront fees. Additionally, the company may receive government grants or public funding to support its research and development efforts in targeting Alzheimer's and other neurodegenerative diseases.

Cognition Therapeutics Financial Statement Overview

Summary

Cognition Therapeutics is facing significant financial challenges, with no revenue generation and increasing operational losses. The balance sheet reflects a precarious financial position with past negative equity and ongoing liabilities. Cash flow analysis indicates critical cash management issues, with persistent negative free cash flow. Overall, the company needs strategic financial restructuring and revenue generation to stabilize its financial health.

Income Statement

Cognition Therapeutics has shown persistent negative profitability with no revenue reported over the years. The EBIT and EBITDA margins are negative, indicating operational challenges. The net income has also been negative throughout, with increasing losses, which presents concerns regarding the company's profitability trajectory.

Balance Sheet

The balance sheet shows a decreasing equity base and increasing liabilities, leading to concerns about financial stability. The company's debt-to-equity ratio is not applicable due to negative equity in past years, but the current positive equity is a slight improvement. However, the company's reliance on debt financing remains a potential risk.

Cash Flow

The cash flow statement reveals consistent negative free cash flow, indicating operational cash burn. While there is some financing inflow, the operating cash flow to net income ratio is negative, further highlighting cash flow challenges. The growth in free cash flow is not visible, suggesting ongoing cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-67.00K	0.00	-252.00K	-235.00K	-93.00K	-98.00K
EBITDA	-38.37M	-33.68M	-25.51M	-21.13M	-13.38M	-5.99M
Net Income	-33.30M	-33.97M	-25.79M	757.00K	-10.29M	-10.07M
Balance Sheet
Total Assets	23.50M	30.23M	35.16M	50.42M	59.14M	7.12M
Cash, Cash Equivalents and Short-Term Investments	16.43M	25.01M	29.92M	41.56M	54.72M	5.19M
Total Debt	474.00K	814.00K	1.24M	1.48M	0.00	12.85M
Total Liabilities	11.23M	11.48M	10.69M	10.18M	7.86M	75.30M
Stockholders Equity	12.27M	18.75M	24.47M	40.25M	51.27M	-68.18M
Cash Flow
Free Cash Flow	-31.11M	-28.48M	-16.16M	-18.70M	-3.66M	-3.44M
Operating Cash Flow	-31.11M	-28.47M	-16.02M	-18.53M	-3.63M	-3.43M
Investing Cash Flow	-4.00K	-4.00K	-147.00K	-171.00K	-27.00K	-10.00K
Financing Cash Flow	12.87M	23.57M	4.52M	5.55M	53.20M	5.76M

Cognition Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGTX, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.34, and above the 200-day MA of 0.47, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 79.10 is Negative, neither overbought nor oversold. The STOCH value of 70.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGTX.

Cognition Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	¥341.99B	10.89	-2.99%	2.57%	11.76%	-9.96%
CGTX	41 Neutral	$33.00M	―	-161.93%	―	―	-0.38%
LEXX		$17.15M	―	-137.33%	―	―	―
LGVN	58 Neutral	$22.51M	―	-167.57%	―	127.51%	71.16%
ANVS	35 Underperform	$49.30M	―	-280.78%	―	―	68.75%
CMMB	33 Underperform	$22.07M	―	-112.99%	―	―	57.93%
NRSN	30 Underperform	$50.38M	―	-2880.11%	―	―	31.09%

Cognition Therapeutics Corporate Events

Cognition Therapeutics Shows Promising Phase 2 Study Results

Cognition Therapeutics announced promising results from their Phase 2 SHIMMER study, which highlighted the efficacy and safety of their lead product, zervimesine, in treating dementia with Lewy bodies (DLB). The study showed strong responses across behavioral, functional, cognitive, and movement measures, positioning zervimesine as a potential first-to-market treatment for DLB, further supported by robust intellectual property and a favorable safety profile.