Arcutis Biotherapeutics (NASDAQ:ARQT) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Arcutis Biotherapeutics from “buy” to “hold.” Broader analyst sentiment remains positive: eight analysts rate the stock “buy” and two “hold,” with a consensus “moderate buy” rating and a $39.75 price target.
• Arcutis reported quarterly EPS of $0.06, below the $0.18 consensus estimate, while revenue of $143.92 million slightly exceeded forecasts of $142.59 million.
• The company raised its 2026 sales guidance and began enrolling patients in a Phase 3 study of ZORYVE for atopic dermatitis, offering potential growth catalysts.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other brokerages also recently issued reports on ARQT. Guggenheim boosted their price objective on Arcutis Biotherapeutics from $38.00 to $44.00 and gave the company a "buy" rating in a research note on Monday, October 19th. Jefferies Financial Group restated a "buy" rating and set a $39.00 price target on shares of Arcutis Biotherapeutics in a research report on Thursday, October 8th. TD Cowen increased their target price on shares of Arcutis Biotherapeutics from $35.00 to $40.00 and gave the company a "buy" rating in a report on Thursday. Cantor Fitzgerald started coverage on Arcutis Biotherapeutics in a research report on Thursday, October 15th. They set an "overweight" rating and a $48.00 price objective on the stock. Finally, Morgan Stanley upped their target price on shares of Arcutis Biotherapeutics from $34.00 to $38.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $39.75.

Arcutis Biotherapeutics Price Performance

NASDAQ:ARQT opened at $25.55 on Friday. Arcutis Biotherapeutics has a one year low of $19.30 and a one year high of $34.80. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.92 and a quick ratio of 2.67. The company has a market cap of $3.21 billion, a P/E ratio of 148.86 and a beta of 1.66. The firm's fifty day moving average price is $27.16 and its two-hundred day moving average price is $25.37.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported $0.06 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.12). Arcutis Biotherapeutics had a net margin of 6.15% and a return on equity of 15.05%. The company had revenue of $143.92 million for the quarter, compared to the consensus estimate of $142.59 million. Equities analysts expect that Arcutis Biotherapeutics will post 0.43 earnings per share for the current year.

Insider Transactions at Arcutis Biotherapeutics

In other news, insider Todd Watanabe sold 4,377 shares of the firm's stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $31.86, for a total value of $139,451.22. Following the sale, the insider directly owned 712,826 shares in the company, valued at approximately $22,710,636.36. This trade represents a 0.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Terrie Curran sold 38,200 shares of the company's stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $25.03, for a total value of $956,146.00. Following the transaction, the director directly owned 23,526 shares in the company, valued at approximately $588,855.78. The trade was a 61.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 123,932 shares of company stock worth $3,553,077. Insiders own 9.40% of the company's stock.

Institutional Trading of Arcutis Biotherapeutics

Institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Arcutis Biotherapeutics during the second quarter valued at $276,502,000. Bank of America Corp DE purchased a new stake in shares of Arcutis Biotherapeutics during the second quarter worth about $78,330,000. Jupiter Topco LLC acquired a new stake in shares of Arcutis Biotherapeutics in the 2nd quarter valued at about $36,989,000. Bamco Inc. NY acquired a new position in Arcutis Biotherapeutics in the second quarter worth $32,857,000. Finally, Simplify Asset Management Inc. acquired a new position in Arcutis Biotherapeutics during the 3rd quarter valued at approximately $22,885,000.

More Arcutis Biotherapeutics News

Here are the key news stories impacting Arcutis Biotherapeutics this week:

• Positive Sentiment: Arcutis raised its 2026 sales guidance, a sign of improved commercial expectations. However, investors may be weighing whether the stronger outlook is already reflected in the stock. Article: Arcutis Biotherapeutics Raised 2026 Sales Guidance
• Positive Sentiment: The company began enrolling participants in a Phase 3 study of ZORYVE cream 0.3% for moderate-to-severe atopic dermatitis. Success could expand the medicine’s potential market, though this remains a clinical-development catalyst. Article: Arcutis Begins Enrolling Phase 3 ZORYVE Study
• Neutral Sentiment: Arcutis granted stock options and restricted stock units to six new employees. The awards create some share dilution, but are routine hiring-related inducements and are not a major business update. Article: Arcutis Reports Inducement Grants
• Negative Sentiment: Third-quarter EPS was $0.06, below analyst expectations of roughly $0.17–$0.18. Revenue of $143.92 million narrowly topped forecasts, but the earnings miss appears to be the more immediate sentiment driver. Article: Arcutis Falls After Q3 Earnings Miss
• Negative Sentiment: HC Wainwright cut its EPS estimates for the first three quarters of 2027, including reducing its Q2 forecast from $0.19 to $0.14. The lowered projections add to concerns following the quarterly earnings shortfall.

Arcutis Biotherapeutics Company Profile

Arcutis Biotherapeutics, Inc is a commercial-stage biopharmaceutical company focused on developing and delivering treatments for dermatologic conditions. The company's portfolio is centered on therapies designed to address inflammatory skin diseases, with an emphasis on nonsteroidal topical medicines that may help patients manage chronic conditions.

Arcutis's lead product is ZORYVE (roflumilast), a topical phosphodiesterase-4 inhibitor. ZORYVE has received U.S. Food and Drug Administration approvals for multiple dermatological uses, including plaque psoriasis, seborrheic dermatitis and atopic dermatitis, in different cream and foam formulations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.