Tarsus Pharmaceuticals (NASDAQ:TARS) Stock Moved Down to Strong Sell by Zacks Research

Key Points

• Zacks Research downgraded Tarsus Pharmaceuticals to “strong sell” from “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $100.86.
• TARS shares opened at $73.61, below the consensus target, while the company reported a quarterly EPS loss of $0.43 that missed estimates despite revenue of $173.91 million exceeding expectations.
• Insiders sold 48,031 shares worth approximately $4.0 million over the past 90 days, while institutional investors own about 90.01% of the company.

Tarsus Pharmaceuticals (NASDAQ:TARS - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday, Zacks reports.

Other research analysts also recently issued research reports about the company. Barclays began coverage on Tarsus Pharmaceuticals in a report on Wednesday, September 16th. They issued an "overweight" rating and a $110.00 price objective on the stock. HC Wainwright restated a "buy" rating and set a $88.00 price target on shares of Tarsus Pharmaceuticals in a research report on Thursday, July 9th. Mizuho decreased their price target on Tarsus Pharmaceuticals from $100.00 to $98.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. Weiss Ratings reiterated a "sell (d-)" rating on shares of Tarsus Pharmaceuticals in a research report on Friday, July 17th. Finally, The Goldman Sachs Group initiated coverage on Tarsus Pharmaceuticals in a research note on Thursday, September 24th. They set a "buy" rating and a $116.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Tarsus Pharmaceuticals has an average rating of "Moderate Buy" and an average target price of $100.86.

Tarsus Pharmaceuticals Price Performance

Shares of Tarsus Pharmaceuticals stock opened at $73.61 on Tuesday. Tarsus Pharmaceuticals has a 52-week low of $53.89 and a 52-week high of $91.53. The stock has a market capitalization of $3.23 billion, a price-to-earnings ratio of -67.53 and a beta of 0.44. The company has a fifty day moving average of $73.96 and a 200-day moving average of $67.12. The company has a debt-to-equity ratio of 0.21, a quick ratio of 3.17 and a current ratio of 3.20.

Tarsus Pharmaceuticals (NASDAQ:TARS - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.43) EPS for the quarter, missing the consensus estimate of ($0.19) by ($0.24). The business had revenue of $173.91 million for the quarter, compared to the consensus estimate of $169.65 million. Tarsus Pharmaceuticals had a negative net margin of 7.67% and a negative return on equity of 13.53%. Equities research analysts expect that Tarsus Pharmaceuticals will post -4.25 EPS for the current year.

Insider Activity at Tarsus Pharmaceuticals

In other Tarsus Pharmaceuticals news, Director William Link, PhD sold 12,500 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $78.38, for a total transaction of $979,750.00. Following the completion of the transaction, the director owned 94,487 shares of the company's stock, valued at $7,405,891.06. This represents a 11.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Elizabeth Lin sold 10,773 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $87.50, for a total value of $942,637.50. Following the completion of the sale, the insider owned 2,547 shares of the company's stock, valued at approximately $222,862.50. This trade represents a 80.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 48,031 shares of company stock worth $4,004,227 in the last 90 days. Company insiders own 9.64% of the company's stock.

Institutional Trading of Tarsus Pharmaceuticals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp purchased a new stake in Tarsus Pharmaceuticals in the second quarter worth $7,204,000. Hsbc Holdings PLC lifted its position in Tarsus Pharmaceuticals by 295.0% during the second quarter. Hsbc Holdings PLC now owns 38,090 shares of the company's stock valued at $2,429,000 after buying an additional 28,447 shares during the period. Bank of America Corp DE lifted its position in Tarsus Pharmaceuticals by 57.5% during the first quarter. Bank of America Corp DE now owns 1,194,377 shares of the company's stock valued at $83,786,000 after buying an additional 436,271 shares during the period. TimesSquare Capital Management LLC bought a new stake in shares of Tarsus Pharmaceuticals during the 2nd quarter valued at $23,249,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Tarsus Pharmaceuticals during the 2nd quarter valued at $5,726,000. Hedge funds and other institutional investors own 90.01% of the company's stock.

Tarsus Pharmaceuticals Company Profile

Tarsus Pharmaceuticals, Inc is a commercial-stage biopharmaceutical company focused on developing and commercializing therapies for diseases and conditions affecting the eye. The company concentrates on areas of significant unmet need in ophthalmology and aims to address conditions that can affect ocular health, comfort and vision.

Tarsus' primary product is XDEMVY (lotilaner ophthalmic solution) 0.25%, an eye drop approved by the U.S. Food and Drug Administration in 2023 for the treatment of Demodex blepharitis.

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