Lake Street Capital Begins Coverage on Verrica Pharmaceuticals (NASDAQ:VRCA)

Key Points

• Lake Street Capital initiated coverage of Verrica Pharmaceuticals with a “buy” rating and a $9.00 price target, implying 83.3% upside from the previous close.
• Analyst sentiment is mixed: MarketBeat reports a consensus “hold” rating and a $12.67 target, based on three Buy, one Hold, and one Sell rating.
• VRCA opened at $4.91, with a market capitalization of approximately $84.35 million; hedge funds and institutional investors own 42.45% of the stock.

Equities researchers at Lake Street Capital assumed coverage on shares of Verrica Pharmaceuticals (NASDAQ:VRCA - Get Free Report) in a research note issued on Thursday. The firm set a "buy" rating and a $9.00 price target on the stock. Lake Street Capital's price target would indicate a potential upside of 83.30% from the company's previous close.

Several other research firms have also commented on VRCA. Weiss Ratings reiterated a "sell (e+)" rating on shares of Verrica Pharmaceuticals in a research note on Wednesday, July 15th. Zacks Research upgraded Verrica Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research report on Monday, May 11th. HC Wainwright started coverage on Verrica Pharmaceuticals in a research note on Tuesday, May 26th. They issued a "buy" rating and a $12.00 price target on the stock. Finally, Wall Street Zen downgraded Verrica Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 15th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $12.67.

Verrica Pharmaceuticals Stock Performance

VRCA opened at $4.91 on Thursday. The firm's fifty day simple moving average is $5.54 and its two-hundred day simple moving average is $5.82. Verrica Pharmaceuticals has a 52-week low of $3.28 and a 52-week high of $9.82. The company has a market cap of $84.35 million, a price-to-earnings ratio of -2.94 and a beta of 1.49. The company has a quick ratio of 1.33, a current ratio of 1.45 and a debt-to-equity ratio of 0.18.

Institutional Investors Weigh In On Verrica Pharmaceuticals

A number of large investors have recently made changes to their positions in VRCA. Armistice Capital LLC lifted its position in Verrica Pharmaceuticals by 75.1% during the fourth quarter. Armistice Capital LLC now owns 1,118,925 shares of the company's stock worth $9,298,000 after buying an additional 479,732 shares in the last quarter. Affinity Asset Advisors LLC acquired a new stake in shares of Verrica Pharmaceuticals in the 4th quarter worth $5,878,000. Velan Capital Investment Management LP acquired a new stake in shares of Verrica Pharmaceuticals in the 4th quarter worth $3,919,000. Boothbay Fund Management LLC purchased a new position in shares of Verrica Pharmaceuticals during the 3rd quarter worth $1,210,000. Finally, Kalehua Capital Management LLC purchased a new position in shares of Verrica Pharmaceuticals during the 4th quarter worth $1,959,000. 42.45% of the stock is currently owned by hedge funds and other institutional investors.

About Verrica Pharmaceuticals

Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica's approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.

Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.

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