Ovid Therapeutics (OVID) AI Stock Analysis

• Market Cap: $105.95M
• Dividend Yield: N/A
• Average Volume (3M): 4.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: 1071.91%
• EPS Growth: -27.61%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 71,109,510
• 10 Day Avg. Volume: 3,041,159
• 30 Day Avg. Volume: 4,253,922
• 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: >-0.01
• Enterprise Value/Revenue: -0.12
• Enterprise Value/Gross Profit: -0.12
• Enterprise Value/Ebitda: 0.02
• 1Y Price Target: $4.67
• Price Target Upside: 213.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 52 Neutral
• Price Target: $1.50 ▲(0.67% Upside)

The overall stock score of 52 reflects significant financial challenges, including inconsistent revenue and ongoing losses, which weigh heavily on the company's outlook. Despite positive technical indicators suggesting short-term bullish momentum, the negative valuation metrics highlight concerns about profitability and long-term sustainability. Strategic improvements in financial management are essential to enhance the company's prospects.

Positive Factors

Pipeline Development

Positive Phase 1 results for OV329 indicate progress in drug development for drug-resistant epilepsies, enhancing long-term growth potential.

Financial Stability

The $175M PIPE financing strengthens Ovid's financial position, supporting R&D and operations, potentially extending cash runway into 2028.

Industry Focus

Ovid's focus on rare neurological disorders addresses significant unmet needs, positioning it well in a niche market with high barriers to entry.

Negative Factors

Revenue Volatility

Significant revenue decline indicates instability in revenue generation, posing challenges for sustainable growth and financial planning.

Profitability Challenges

Persistent losses and negative margins highlight difficulties in achieving profitability, which could hinder long-term financial health.

Cash Flow Concerns

Negative operating cash flow suggests reliance on external financing, which may not be sustainable, impacting long-term operational stability.

Ovid Therapeutics Business Overview & Revenue Model

Company Description

Ovid Therapeutics Inc. is a biopharmaceutical company focused on developing innovative therapies for patients with rare neurological disorders. The company is dedicated to addressing significant unmet medical needs in conditions such as epilepsy, fragile X syndrome, and other neurodevelopmental disorders by leveraging its deep expertise in neuroscience and drug development. Ovid's core products include its pipeline of drug candidates, with a focus on developing treatments that can improve patient outcomes and quality of life.

How the Company Makes Money

Ovid Therapeutics generates revenue primarily through a combination of pharmaceutical product sales, collaborations, and research grants. The company focuses on advancing its drug candidates through various stages of clinical development, with the potential for significant revenue upon successful commercialization. Key revenue streams may include milestone payments from partnerships with larger pharmaceutical companies, royalties on sales of any approved products, and potential licensing agreements. Additionally, Ovid may benefit from grants and funding aimed at supporting research and development in the fields of neurology and rare diseases, enhancing its financial stability and growth potential.

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	6.65M	566.00K	391.69K	1.50M	208.38M	12.62M
Gross Profit	6.55M	566.00K	392.00K	1.50M	208.38M	12.62M
EBITDA	-41.30M	-57.77M	-57.01M	-54.17M	124.40M	-81.12M
Net Income	-38.18M	-26.43M	-52.34M	-54.17M	122.83M	-81.04M
Balance Sheet
Total Assets	77.43M	92.17M	144.03M	155.27M	194.54M	75.93M
Cash, Cash Equivalents and Short-Term Investments	38.35M	53.08M	105.83M	129.00M	187.80M	72.03M
Total Debt	1.38M	14.76M	16.00M	16.54M	0.00	0.00
Total Liabilities	21.64M	23.94M	56.23M	22.99M	14.80M	32.29M
Stockholders Equity	55.79M	68.23M	87.80M	132.27M	179.75M	43.63M
Cash Flow
Free Cash Flow	-40.06M	-56.03M	-45.92M	-56.65M	118.42M	-51.97M
Operating Cash Flow	-40.07M	-55.96M	-45.78M	-55.23M	118.61M	-51.58M
Investing Cash Flow	38.74M	54.59M	-2.58M	-87.88M	-1.82M	34.65M
Financing Cash Flow	51.00K	622.00K	30.54M	180.66K	904.08K	47.07M

Ovid Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVID, the sentiment is Neutral. The current price of 1.49 is below the 20-day moving average (MA) of 1.62, above the 50-day MA of 1.39, and above the 200-day MA of 0.69, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 36.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OVID.

Ovid Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVID	―	$105.95M	-2.77	-52.77%	―	1071.91%	-27.61%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZNTL	―	$107.48M	―	-49.55%	―	-33.76%	17.10%
IKT	―	$114.76M	-1.42	-97.49%	―	-100.00%	62.82%
IRD	―	$115.62M	-1.10	-200.57%	―	-6.25%	-226.01%
SRZN	―	$117.84M	-0.99	-130.27%	―	―	35.81%
BMEA	―	$106.76M	―	-170.53%	―	―	22.35%

Ovid Therapeutics Corporate Events

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.

The most recent analyst rating on (OVID) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Ovid Therapeutics stock, see the OVID Stock Forecast page.

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.

The most recent analyst rating on (OVID) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Ovid Therapeutics stock, see the OVID Stock Forecast page.

Ovid Therapeutics Navigates FDA Disruptions and Government Challenges

Ovid Therapeutics faces significant business risks due to potential disruptions at the FDA and other government agencies. Factors such as layoffs, funding shortages, and global health concerns could impede the FDA’s ability to review clinical trials or approve new products. These disruptions may lead to delays in product development and approval processes, adversely affecting Ovid’s business operations. The unpredictability of government funding and policy changes further exacerbates these risks, posing a challenge to the company’s strategic planning and execution.

Ovid Therapeutics Reports Increased Revenue Amid Challenges

Ovid Therapeutics Inc. is a biopharmaceutical company focused on developing small molecule medicines for brain conditions with significant unmet needs. In its latest earnings report for the quarter ending June 30, 2025, Ovid Therapeutics reported a total revenue of $6.3 million, a significant increase from $169,000 in the same period last year. Despite this revenue growth, the company faced a net loss of $4.7 million for the quarter, compared to a net income of $8.5 million in the previous year. The increase in revenue was primarily attributed to license and other revenue, while operating expenses decreased significantly from the previous year. The company continues to face challenges, including a need for additional funding to sustain operations beyond the next 12 months. Management is exploring strategic alternatives such as partnerships, collaborations, or licensing agreements to secure additional capital. Looking forward, Ovid Therapeutics remains committed to its strategic plans and is focused on overcoming financial challenges to continue its development programs.

Ovid Therapeutics Transfers Stock to Nasdaq Capital Market

Ovid Therapeutics received approval to transfer its common stock to the Nasdaq Capital Market, providing an additional 180 days to meet the minimum bid price requirement. The company is progressing with its clinical trials, including the OV329 Phase 1 study, and has signed a $7 million royalty monetization agreement to strengthen its financial position. Ovid’s cash reserves are expected to support operations into the second half of 2026, as it continues to explore strategic options to accelerate development and manage costs.

The most recent analyst rating on (OVID) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Ovid Therapeutics stock, see the OVID Stock Forecast page.