Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap biotech Targacept (NASDAQ:TRGT) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Targacept's business and see what CAPS investors are saying about the stock right now.

Targacept facts

Headquarters (founded)

Winston-Salem, N.C. (1997)

Market Cap

$327.95 million



TTM Revenue

$19.6 million


CEO Dr. Donald deBethizy (since 2000)
CFO Alan Musso (since 2002)

Return on Equity (average, last three years)


2-Month Return


Highly Rated Biotech Alternatives

Gilead Sciences (NASDAQ:GILD)

CAPS Members Bearish on TRGT Also Bearish on

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CAPS Members Bullish on TRGT Also Bullish on

Johnson and Johnson (NASDAQ:JNJ)

Sources: Capital IQ, a division of Standard & Poor's; and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, some 69% of the 121 members who have rated Targacept believe the stock will underperform the S&P 500 going forward. These bears include All-Stars tenmiles and UltraLong, both of whom are in the top five members in all of CAPS.

Last month, tenmiles brought Targacept's seemingly unsustainable price surge -- fueled by positive results for its experimental depression drug -- to our community's attention. The stock has kept climbing, since: "Just a technical call on this one that appears ahead of itself after positive Phase II results -- seller at $8.60."

In a more recent pitch from this week, UltraLong refuses to give up on the short:

I mean really, do I have to put up with this garbage all year long? How many biotechs are going to shoot up 1000% on one little Phase II study in 2009? Just another money-burner if you ask me.

I'll give it this, it has the best chance of being bought out of the bunch of miscreants I've thumbed down lately, but it won't be bought this high, that's for sure. Tenmiles had it correct that a correction is long overdue. Does a biotech make a sound if it falls in the market and no one is around to hear it?

What do you think about Targacept, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a recommendation of Motley Fool Rule Breakers. Johnson & Johnson is a Motley Fool Income Investor pick. The Fool's disclosure policy always gets a perfect score.