Ovid Therapeutics (OVID) AI Stock Analysis

• Market Cap: $99.70M
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 946.61%
• EPS Growth: -11.30%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 71,212,360
• 10 Day Avg. Volume: 1,191,591
• 30 Day Avg. Volume: 1,521,247
• PEG Ratio: 0.05
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 116.97
• P/FCF Ratio: -1.18
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 12.19
• Enterprise Value/Gross Profit: 12.23
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $4.43
• Price Target Upside: 170.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $1.50 ▼(-8.54% Downside)

Ovid Therapeutics' stock score is primarily influenced by its financial performance challenges, including inconsistent revenue and ongoing losses. However, positive technical indicators and recent corporate events, such as securing significant funding and regaining Nasdaq compliance, provide some optimism. The valuation remains a concern due to negative earnings and lack of dividends.

Positive Factors

Strategic Funding

The $175.1M funding enhances Ovid's R&D capabilities and operational flexibility, supporting long-term growth and innovation in rare neurological disorders.

Regulatory Compliance

Regaining Nasdaq compliance stabilizes Ovid's market position, ensuring continued access to capital markets and boosting investor confidence.

Product Development

Successful Phase 1 results for OV329 indicate promising advancement in Ovid's pipeline, potentially leading to breakthrough therapies for neurological disorders.

Negative Factors

Revenue Volatility

Significant revenue fluctuations undermine financial predictability, posing challenges for sustainable growth and long-term strategic planning.

Cash Flow Deficits

Persistent negative cash flow indicates reliance on external financing, which may limit financial flexibility and impact long-term viability.

Profitability Challenges

Continued profitability challenges highlight the need for strategic adjustments to achieve financial sustainability and improve investor confidence.

Ovid Therapeutics Business Overview & Revenue Model

Company Description

Ovid Therapeutics is a biopharmaceutical company focused on developing innovative therapies for patients with rare neurological disorders. The company operates primarily in the biotechnology sector and is committed to advancing treatments for conditions such as Angelman syndrome and other central nervous system disorders. Ovid's core products include its investigational drug candidates, which are designed to address the underlying causes of these disorders and improve the quality of life for affected individuals.

How the Company Makes Money

Ovid Therapeutics primarily generates revenue through partnerships and collaborations with larger pharmaceutical companies, as well as potential future product sales following successful clinical trials and regulatory approvals. The company's revenue model includes upfront payments, milestone payments based on the achievement of development and commercial milestones, and royalties on future sales of products developed through these partnerships. Additionally, Ovid may receive funding through grants or government programs aimed at supporting research and development in rare diseases, contributing to its overall financial health.

Ovid Therapeutics Financial Statement Overview

Summary

Ovid Therapeutics faces challenges with revenue consistency and profitability, evidenced by significant fluctuations in income and continued losses. Despite low debt levels, declining equity and persistent cash flow deficits highlight financial sustainability concerns. While there are signs of improvement in reducing net losses, the overall financial health remains precarious, requiring strategic adjustments to enhance revenue generation and cash management.

Income Statement

Ovid Therapeutics has experienced significant revenue volatility, with a decline from $208M in 2021 to $566K in 2024, indicating unstable revenue generation. The gross profit margin is consistently low, and negative EBIT and net income margins indicate ongoing losses. Recent improvements in reducing losses are positive, but profitability remains a challenge.

Balance Sheet

The company's debt-to-equity ratio is low, reflecting modest leverage, which is a positive indicator of financial stability. However, the declining stockholders' equity and total assets over recent years raise concerns about the company's ability to sustain its operations long-term. The equity ratio suggests a fair proportion of equity financing, but high liabilities relative to assets pose risks.

Cash Flow

Operating cash flow remains negative, reflecting ongoing cash burn, although there has been a slight improvement in free cash flow in 2024. The company has relied on financing activities to support cash flow, which could indicate difficulties in generating sufficient cash from operations. Continued negative free cash flow is a concern for long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.61M	566.00K	392.00K	1.50M	208.38M	12.62M
Gross Profit	6.59M	566.00K	392.00K	1.50M	208.38M	12.62M
EBITDA	-40.29M	-57.77M	-57.01M	-54.17M	124.45M	-81.12M
Net Income	-36.33M	-26.43M	-52.34M	-54.17M	122.83M	-81.04M
Balance Sheet
Total Assets	63.85M	92.17M	144.03M	155.27M	194.54M	75.93M
Cash, Cash Equivalents and Short-Term Investments	25.60M	53.08M	105.83M	129.00M	187.80M	72.03M
Total Debt	13.76M	14.76M	16.00M	16.54M	0.00	0.00
Total Liabilities	19.15M	23.94M	56.23M	22.99M	14.80M	32.29M
Stockholders Equity	44.70M	68.23M	87.80M	132.27M	179.75M	43.63M
Cash Flow
Free Cash Flow	-37.96M	-56.03M	-45.92M	-56.65M	118.43M	-51.97M
Operating Cash Flow	-37.93M	-55.96M	-45.78M	-55.23M	118.61M	-51.58M
Investing Cash Flow	43.50M	54.59M	-2.58M	-87.88M	-1.82M	34.65M
Financing Cash Flow	28.00K	622.00K	30.54M	180.66K	904.08K	47.07M

Ovid Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVID, the sentiment is Positive. The current price of 1.64 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.52, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 52.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OVID.

Ovid Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVID	56 Neutral	$99.70M	―	-60.06%	―	946.61%	-11.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZNTL	46 Neutral	$101.15M	-0.67	-49.18%	―	-33.76%	17.54%
IKT	46 Neutral	$118.48M	-1.46	-131.71%	―	-100.00%	79.01%
IRD	44 Neutral	$153.79M	-1.30	-338.75%	―	74.60%	-58.14%
SRZN	43 Neutral	$107.90M	-0.90	―	―	-63.96%	-28.50%
BMEA	35 Underperform	$89.09M	-0.42	-209.00%	―	―	40.22%

Ovid Therapeutics Corporate Events

Ovid Therapeutics Stockholders Approve Key Proposals

On December 11, 2025, Ovid Therapeutics held a special meeting where stockholders approved three key proposals. The first proposal increased the authorized shares of common stock from 125 million to 315 million. The second proposal allowed the conversion of Series B Preferred Stock and the exercise of Series A and B Warrants, while the third approved the issuance of securities to CEO Jeremy Levin. These approvals are significant for the company’s capital structure and compliance with Nasdaq rules.

Ovid Therapeutics Secures $175.1M in Private Placement

On October 2, 2025, Ovid Therapeutics entered into a Securities Purchase Agreement to issue and sell Series B convertible preferred stock and warrants in a private placement, potentially raising up to $175.1 million. The proceeds will be used for research and development, corporate expenses, and working capital. Additionally, Ovid announced positive results from a Phase 1 study of OV329, a GABA-aminotransferase inhibitor for drug-resistant epilepsies, showing strong inhibitory activity and a favorable safety profile, with plans to advance to Phase 2a trials.

Ovid Therapeutics Regains Nasdaq Compliance

On September 11, 2025, Ovid Therapeutics Inc. announced that it has regained compliance with Nasdaq’s listing requirements, specifically maintaining a minimum bid price of at least $1.00 per share. This development closes the matter with Nasdaq, potentially stabilizing the company’s market position and reassuring stakeholders regarding its stock market standing.