Exploring Pasithea Therapeutics Corp. (KTTA) Investor Profile: Who’s Buying and Why?

You're looking at Pasithea Therapeutics Corp. (KTTA) and trying to figure out if the smart money sees something you don't, but honestly, the investor profile tells a different story entirely. With the stock trading around $0.72 per share as of mid-November 2025-a brutal -90.84% drop over the last 52 weeks-the institutional footprint is remarkably small, sitting at only about 4.13% of the ownership structure. That's a tiny slice compared to the outsized retail interest, which holds a massive 72.67%, plus a significant 18.41% held by insiders. So, is this a deep-value play or a high-risk gamble fueled by retail hope? The company's recent Q3 2025 net loss of -$3.03 million, against a cash position of just $4.1 million, means the clock is defintely ticking on their lead candidate, PAS-004. Who are the few institutions, like Citadel Advisors Llc and Vanguard Group Inc, that are still holding their 814,572 shares, and what are the specific clinical milestones that could either validate their conviction or send the stock lower? We need to map the risks and opportunities here, not just trade on sentiment.

Who Invests in Pasithea Therapeutics Corp. (KTTA) and Why?

The investor profile for Pasithea Therapeutics Corp. (KTTA) is defintely unique, dominated by individual investors who are betting on the company's long-term growth in the neurology and mental health space. The direct takeaway is that while institutional money is present, it's a small slice of the pie, meaning the stock's volatility is largely driven by retail sentiment and clinical news flow.

As of late 2025, the ownership structure shows a significant tilt toward individual stockholders, which is typical for a clinical-stage biotech company with a low market capitalization of around $5.24 million. Here's the quick math on who owns the company, based on recent data:

Key Investor Types and Ownership Breakdown

The most striking feature of Pasithea Therapeutics Corp.'s ownership is the heavy concentration in the hands of retail investors, holding roughly 72.67% of the stock. These are typically individual investors, often trading through online brokerage accounts, who are drawn to the high-risk, high-reward nature of early-stage biotechnology. They are looking for a multi-bagger return if the company's drug pipeline succeeds.

Institutional Investors-the big money like mutual funds and pension funds-hold a much smaller portion, around 4.13%. The largest institutional holder as of November 5, 2025, is AdvisorShares Investments LLC, which held 257,696 shares, representing 3.462% of the company. This low institutional ownership means less stability and less professional research coverage, but also more potential for a significant price jump if a major fund decides to initiate a large position. It's a classic small-cap biotech setup.

Insiders, which include executives and directors like Lawrence Steinman, who owns the most shares, collectively hold a substantial 18.41%. This high insider ownership is a double-edged sword: it shows management's conviction, but it can also limit the stock's float (the number of shares available for trading), which can amplify price swings.

Investment Motivations: Betting on Innovation

Investors are drawn to Pasithea Therapeutics Corp. primarily for its growth prospects, not its current financials. Honestly, the company is pre-revenue, reporting $0 in Total Revenue for Q2 2025, and a Net Loss of $3.72 million in the same quarter. So, nobody is buying this for a dividend or value; it's all about the pipeline.

The core motivation is the company's focus on innovative treatments for psychiatric and neurological disorders, specifically addressing unmet needs in mental health. The key drivers for investment are:

• Clinical Milestones: Positive results from drug trials, such as the promising interim results from the Phase 1 trial of its drug PAS-004 reported in July 2025.
• Market Position: The company's work in the growing mental health sector, particularly with novel compounds, positions it as a potential disruptor.
• Speculative Upside: The low share price-around $0.72 / share as of November 14, 2025-attracts speculative capital looking for a massive return on a successful drug approval.

Investment Strategies: Short-Term Gains vs. Long-Term Hopes

The dominant strategies seen among Pasithea Therapeutics Corp. investors reflect the high-stakes nature of the biotech world. You see a clear split between long-term holders and short-term traders.

Long-Term Holding: Institutional investors like AdvisorShares Investments LLC, and core insiders, adopt this strategy. AdvisorShares, for example, has been steadily increasing its position, showing a +33.1% quarterly change in shares held as of November 2025. They are analyzing the company's long-term prospects, believing in the eventual commercialization of the pipeline.

Short-Term Trading: This is the strategy of many retail investors and certain hedge funds like Citadel Advisors Llc and Renaissance Technologies Llc. They are looking for short-term gains, often reacting to:

• News Catalysts: Buying ahead of or immediately after press releases on clinical trial data or regulatory updates.
• Momentum Trading: Riding the stock's volatility, which can be intense due to the low float and high retail interest.

This stock is a pure growth play. If you want a deep dive into the company's foundation, you should read Pasithea Therapeutics Corp. (KTTA): History, Ownership, Mission, How It Works & Makes Money. The next step is to monitor the Q3 2025 financial filings for any shifts in cash burn and institutional interest, as that will be the real near-term indicator of stability.

Institutional Ownership and Major Shareholders of Pasithea Therapeutics Corp. (KTTA)

You need to understand who is buying Pasithea Therapeutics Corp. (KTTA) and why, because for a micro-cap biotech company, a few big institutional trades can move the stock price dramatically. The institutional profile for KTTA is characterized by low overall ownership but a clear, recent trend of accumulation by specialized funds, indicating a bet on the pipeline, specifically the PAS-004 program.

As of the end of the 2025 fiscal year reporting cycle, institutional investors hold a total of approximately 814,572 shares of Pasithea Therapeutics Corp.. This figure represents a relatively small percentage of the company's total outstanding stock, with institutional ownership hovering around the 10.95% mark, though some data suggests it could be as high as 23.92%. The key takeaway here is that the stock is largely held by insiders and retail investors, which contributes to its high volatility.

Top Institutional Investors: Who's Buying In

The institutional investor base for KTTA is comprised of 27 owners, and it's not the typical BlackRock or Vanguard passive index play dominating the list. Instead, you see specialized funds and active traders making tactical wagers. For a company with a market capitalization around $3.09 million, these investors are often looking for outsized returns tied to specific clinical milestones.

The largest holders are a mix of exchange-traded funds (ETFs) and quantitative hedge funds. Here is a snapshot of the top holders and their reported positions from recent 2025 filings:

AdvisorShares Investments LLC, which manages the AdvisorShares Psychedelics ETF, is the clear leader, holding 257,696 shares valued at roughly $186,000 as of November 5, 2025. This suggests a belief in the company's broader focus on central nervous system (CNS) disorders, which you can learn more about in the Mission Statement, Vision, & Core Values of Pasithea Therapeutics Corp. (KTTA).

Recent Shifts: Institutional Buying Momentum

The most telling sign of investor sentiment isn't the total ownership, but the rate of change. On that front, the trend is defintely one of accumulation. The total number of institutional owners increased by a notable 42.11% in the most recent quarter. This is a strong signal of fresh interest, even as the stock price has fallen significantly, dropping from $3.30 per share in November 2024 to $0.72 per share by November 2025.

Here's the quick math on recent institutional buying:

• AdvisorShares Investments LLC increased its stake by 261.5% in the second quarter of 2025, and followed up with another 33.1% increase in the subsequent period.
• Citadel Advisors LLC grew its position by 43.7% during the third quarter.
• Two Sigma Investments LP established a new position valued at around $26,000 in the third quarter.

When you see quantitative funds like Citadel and Two Sigma initiating or significantly increasing positions, it often means their models have flagged a technical opportunity or a specific valuation disconnect, especially given the company's negative EBITDA of $13.09 million in the last twelve months. They are trading on a near-term catalyst or a deep-value play, not long-term profitability.

Impact of Institutional Investors on Strategy and Price

In a small-cap biotech like Pasithea Therapeutics Corp., institutional investors wield disproportionate influence. Their buying and selling patterns directly amplify stock price movements. For example, the recent release of Phase 1 data for PAS-004, which showed a partial response in one patient but failed to excite the broader market, caused the stock to plummet by over 27% in a single day in November 2025. This kind of volatility is a direct result of a small float and institutional investors quickly adjusting their positions based on clinical trial news.

What this means for strategy is that management is highly sensitive to clinical milestones. The institutional money is a vote of confidence in the drug pipeline, particularly PAS-004 for advanced solid tumors. Their presence provides a degree of validation and liquidity, but it also creates pressure. If the next data readout is disappointing, the same institutions that drove accumulation will quickly sell, leading to sharp declines. You must monitor their filings closely, as their actions are a leading indicator of sentiment toward the company's core asset.

Key Investors and Their Impact on Pasithea Therapeutics Corp. (KTTA)

You need to know who is betting on Pasithea Therapeutics Corp. (KTTA) because in a micro-cap biotech, a few big players can move the needle dramatically, and the investor profile here is highly concentrated. The key takeaway is that institutional ownership is small, but a few specialized funds are accumulating, while the stock's direction is overwhelmingly dictated by retail sentiment reacting to clinical trial news.

Pasithea Therapeutics Corp. is fundamentally an early-stage, clinical-focused company, and its investor base reflects that high-risk, high-reward profile. The latest data shows that institutional investors hold a relatively small portion of the company-around 814,572 shares in total, spread across approximately 27 institutional owners. This low institutional float means the stock is highly susceptible to volatility, which we've defintely seen recently.

The Largest Institutional Bet: AdvisorShares

The most notable institutional investor is AdvisorShares Investments LLC, primarily through its focus on the psychedelics and biotech space. As of a November 5, 2025 filing, AdvisorShares Investments LLC held 257,696 shares of Pasithea Therapeutics Corp.. This position is significant because it represents the largest single institutional stake, making them the anchor for institutional confidence in the stock.

Here's the quick math on their recent conviction: AdvisorShares Investments LLC increased its position by a substantial +33.1% in the quarter leading up to November 2025. This isn't passive investing; it's a clear accumulation signal from a fund specializing in the company's therapeutic area. They are buying into the long-term potential of the lead therapeutic candidate, PAS-004, a next-generation macrocyclic MEK inhibitor.

• AdvisorShares Investments LLC: Largest institutional holder.
• Recent Move: Increased stake by +33.1% near November 2025.
• Total Shares Held: 257,696 as of November 5, 2025.

Insider Conviction vs. Market Reality

While institutional money is important, the largest single shareholder is an insider, which is common in smaller biotech firms. Professor Lawrence Steinman, a key figure in the company, holds the largest individual stake, with 1,327,174 shares, representing 17.83% of the company's outstanding stock. This level of insider ownership is a double-edged sword: it shows management's skin in the game, but it also means a large block of shares is controlled by a single entity, which can limit trading liquidity.

The market's reaction to news, however, shows that the collective investor base-including the large retail component-is king. For example, on November 20, 2025, the stock plummeted 25% in after-hours trading following the release of interim Phase 1 data for PAS-004. Despite the company reporting a partial response in one patient and a favorable safety profile, the market was clearly unimpressed with the overall efficacy signal, indicating that investors expected stronger results to justify the valuation. This is the true influence: the immediate, brutal repricing based on clinical milestones.

Mapping Risk and Opportunity to Action

The company's financial footing, which includes a negative EBITDA of $13.09 million in the last twelve months (as of October 2025), confirms it's a pure R&D play; there is no significant recurring revenue to cushion bad news. The stock price was trading at $0.72 per share on November 14, 2025, a steep decline of 78.25% from a year prior.

The influence of these investors is less about boardroom activism (Schedule 13D filings are not prominent here) and more about capital allocation and market signaling. When AdvisorShares Investments LLC buys, it tells the market that a specialist sees value in the long-term drug pipeline. When the stock tanks on clinical data, it tells management that the market demands better efficacy signals to support the current $3.09 million market capitalization. For more on the company's foundational structure, you can check out Pasithea Therapeutics Corp. (KTTA): History, Ownership, Mission, How It Works & Makes Money.

Your action here is to watch the institutional buying and selling activity, particularly from AdvisorShares, as a proxy for specialist sentiment, but know that the stock's short-term fate rests entirely on the next clinical data readout for PAS-004. You are trading on science, not on a stable earnings model.

Market Impact and Investor Sentiment

You need a clear picture of who is buying Pasithea Therapeutics Corp. (KTTA) and why, because right now, the signal is a messy mix of institutional caution and insider confidence. The near-term investor sentiment is defintely negative, driven by a significant increase in short-selling activity and disappointing recent clinical data. Short interest has recently surged by 68.47%, which is a clear sign that a large part of the market is betting on a further price decline.

Here's the quick math: KTTA's stock price started the 2025 fiscal year at approximately $3.15 per share and has since plummeted by about 90.7% to trade around $0.2923 as of late November 2025. That's a brutal year, still, there's a fascinating split in the ownership profile.

• Retail investors hold the lion's share, owning roughly 72.67% of the stock.
• Insiders, including executives and directors, collectively hold about 18.41%, and their recent activity is positive.
• Institutional ownership is low, hovering around 4.13% to 4.35%.

What this ownership structure hides is the conviction of the people closest to the company. While the public sentiment is bearish, insiders have shown positive sentiment, fueled by high-impact open-market purchases totaling approximately $196.2K over the last year. This suggests that while the stock is getting hammered, those with the most information are quietly accumulating. For a deeper dive into the company's foundational structure, you can check out Pasithea Therapeutics Corp. (KTTA): History, Ownership, Mission, How It Works & Makes Money.

Recent Market Reactions and Price Volatility

The stock market's reaction to news from Pasithea Therapeutics Corp. (KTTA) has been swift and unforgiving, especially in November 2025. The stock price fell a dramatic 29.58% on November 21, 2025, following the release of interim Phase 1 clinical trial data for its drug candidate, PAS-004. The market was clearly hoping for more definitive efficacy results, and the data, while showing a favorable safety profile and some partial responses, didn't meet those high expectations.

The sheer volatility is a major risk factor. On the day of the clinical trial news, the stock saw a massive intraday fluctuation of 31.32%, swinging between a low of $0.281 and a high of $0.369. This kind of price movement makes KTTA a 'very high risk' stock, which is typical for a clinical-stage biotechnology company that faces binary event risk-the stock either soars on positive trial results or plummets on anything less than a breakthrough. The high volume of trading, with approximately 3 million shares changing hands on that day, shows retail investors, the largest shareholder group, were actively reacting.

Here's a snapshot of the largest institutional holders as of the most recent filings:

The largest single shareholder remains insider Lawrence Steinman, holding 1,327,174 shares, which is a substantial 17.83% stake. This concentration of insider ownership is a key factor to watch, as their long-term position contrasts sharply with the short-term negative market reaction.

Analyst Perspectives: The Sell Consensus

The professional Wall Street analyst community is sending a clear, albeit sparse, signal: the consensus rating for Pasithea Therapeutics Corp. (KTTA) is a Sell. Analyst coverage is notoriously thin for micro-cap biotech firms, and KTTA is no exception, with one analyst issuing a sell rating in the last twelve months. The lack of broad coverage is a risk in itself; it means fewer eyes are scrutinizing the financials and clinical progress, leaving retail investors to rely heavily on company press releases.

The financial reality supports the cautious view. The company is in the research and development phase, reporting no revenue for the fiscal year ending December 31, 2024, and a corresponding negative net income of -$13.9 million (in thousands). The trailing twelve-month (TTM) Earnings Per Share (EPS) stands at -5.09. While the balance sheet is clean, showing a debt-to-equity ratio of 0 and a strong current ratio of 4.02, this liquidity is being burned to fund clinical trials.

The one analyst providing a 12-month stock forecast projects a downside of -100.00%, which is a technical way of saying the stock is expected to fall to zero or face a significant capital event like a reverse stock split. This perspective underscores the high-stakes nature of a company whose valuation rests almost entirely on the successful outcome of its clinical pipeline, particularly PAS-004. You need to view the insider buying as a vote of confidence in the science, but the analyst consensus as a cold, hard assessment of the financial runway and market risk.