Journey Medical (NASDAQ:DERM) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Journey Medical from “Hold” to “Strong Sell.” Analyst opinions remain mixed, with two Buy and two Sell ratings; MarketBeat’s consensus rating is Hold and its consensus price target is $13.
• Journey Medical’s latest quarter missed expectations: it reported a loss of $0.05 per share versus the expected $0.02 loss, and revenue of $18.97 million versus the $20.32 million consensus.
• The stock traded at $4.33 on Thursday, near its 12-month low of $4.00. B. Riley maintained a Buy rating but reduced its price target to $13 from $15.

Journey Medical (NASDAQ:DERM - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Thursday, Zacks reports.

A number of other brokerages have also weighed in on DERM. B. Riley Financial restated a "buy" rating and issued a $13.00 target price (down from $15.00) on shares of Journey Medical in a research note on Friday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Journey Medical in a research report on Thursday, October 15th. HC Wainwright reissued a "buy" rating and set a $13.00 price objective on shares of Journey Medical in a report on Monday, October 26th. Finally, Wall Street Zen cut shares of Journey Medical from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Two equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $13.00.

Journey Medical Stock Performance

DERM traded down $0.06 on Thursday, hitting $4.33. The company's stock had a trading volume of 387,161 shares, compared to its average volume of 185,290. The firm has a market cap of $122.19 million, a P/E ratio of -24.05 and a beta of 1.14. Journey Medical has a 12 month low of $4.00 and a 12 month high of $9.56. The company has a quick ratio of 1.41, a current ratio of 1.59 and a debt-to-equity ratio of 0.64. The company's 50 day simple moving average is $5.89 and its 200-day simple moving average is $6.47.

Journey Medical (NASDAQ:DERM - Get Free Report) last released its quarterly earnings results on Thursday, November 12th. The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.03). The firm had revenue of $18.97 million during the quarter, compared to the consensus estimate of $20.32 million. Journey Medical had a negative return on equity of 16.15% and a negative net margin of 7.34%. Analysts forecast that Journey Medical will post -0.13 EPS for the current year.

Institutional Investors Weigh In On Journey Medical

Hedge funds have recently added to or reduced their stakes in the company. Wasatch Advisors LP increased its position in shares of Journey Medical by 34.0% during the 2nd quarter. Wasatch Advisors LP now owns 2,858,930 shares of the company's stock valued at $20,241,000 after purchasing an additional 725,560 shares during the last quarter. Punch & Associates Investment Management Inc. bought a new stake in Journey Medical in the 2nd quarter worth approximately $3,795,000. Pale Fire Capital SE boosted its stake in Journey Medical by 9.7% in the second quarter. Pale Fire Capital SE now owns 528,584 shares of the company's stock worth $3,742,000 after buying an additional 46,597 shares in the last quarter. First Eagle Investment Management LLC purchased a new stake in Journey Medical in the third quarter worth approximately $3,305,000. Finally, Marshall Wace LLP grew its position in Journey Medical by 38.9% during the third quarter. Marshall Wace LLP now owns 194,311 shares of the company's stock valued at $1,329,000 after acquiring an additional 54,468 shares during the last quarter. Institutional investors own 7.25% of the company's stock.

Journey Medical News Summary

Here's some of the latest news about DERM:

• Positive Sentiment: Journey Medical’s third-quarter loss narrowed and revenue increased, and a report said shares gained in after-hours trading following the results. Article
• Neutral Sentiment: B. Riley reaffirmed its “Buy” rating but cut its price target to $13 from $15. The lower target is a cautionary change, though it remains well above the $4.48 reference price cited in the report. Article
• Negative Sentiment: Quarterly adjusted loss was $0.05 per share, worse than the $0.02 loss analysts expected. Revenue of $18.97 million also missed the $20.32 million consensus, which could weigh on sentiment despite the year-over-year improvement. Earnings report

About Journey Medical

Journey Medical Corporation is a commercial-stage pharmaceutical company focused on developing and marketing prescription treatments for dermatological conditions. Founded in 2014 and based in Scottsdale, Arizona, the company primarily serves the U.S. market. Its portfolio includes treatments for conditions such as acne, rosacea, excessive underarm sweating and fungal skin infections. Products include Amzeeq and Zilxi, topical minocycline therapies; Qbrexza, a topical treatment for primary axillary hyperhidrosis; and the oral rosacea treatment Emrosi.

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