Arcutis Biotherapeutics' (ARQT) "Buy" Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham & Company reaffirmed a Buy rating on Arcutis with a $36 price target (about a 49% upside), and the analyst consensus on MarketBeat remains a Moderate Buy with a ~$34 consensus target.
• Q1 results showed strong commercial momentum with $105.4M in revenue (up 65% YoY and above estimates) but a GAAP EPS miss (loss of $0.09 vs. expected loss of $0.02), highlighting revenue growth alongside margin and expense pressure.
• Insiders have sold a notable amount of stock—92,831 shares (~$2.3M) in the past 90 days—with filings citing pre‑arranged plans/tax reasons, a pattern that could create short‑term selling pressure despite insiders owning 9.4% of the company.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Needham & Company LLC in a note issued to investors on Thursday,Benzinga reports. They currently have a $36.00 price objective on the stock. Needham & Company LLC's target price would indicate a potential upside of 48.94% from the stock's previous close.

Several other analysts have also commented on the stock. Mizuho lowered their price objective on shares of Arcutis Biotherapeutics from $37.00 to $35.00 and set an "outperform" rating for the company in a report on Monday, March 2nd. Wall Street Zen lowered Arcutis Biotherapeutics from a "strong-buy" rating to a "buy" rating in a research report on Saturday, February 14th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Arcutis Biotherapeutics in a report on Friday, March 27th. HC Wainwright raised their price objective on Arcutis Biotherapeutics from $30.00 to $34.00 and gave the company a "buy" rating in a research report on Thursday, February 26th. Finally, TD Cowen boosted their target price on shares of Arcutis Biotherapeutics from $30.00 to $35.00 and gave the company a "buy" rating in a report on Thursday, February 26th. Five equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $34.00.

Arcutis Biotherapeutics Price Performance

ARQT opened at $24.17 on Thursday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.99 and a current ratio of 3.17. Arcutis Biotherapeutics has a 52-week low of $12.42 and a 52-week high of $31.77. The stock has a market capitalization of $3.02 billion, a PE ratio of -172.63 and a beta of 1.58. The stock's 50 day moving average price is $23.78 and its 200-day moving average price is $25.78.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.07). Arcutis Biotherapeutics had a negative net margin of 4.29% and a negative return on equity of 10.26%. The company had revenue of $105.40 million during the quarter, compared to the consensus estimate of $103.68 million. On average, equities research analysts predict that Arcutis Biotherapeutics will post 0.18 EPS for the current year.

Insider Buying and Selling at Arcutis Biotherapeutics

In other Arcutis Biotherapeutics news, insider Patrick Burnett sold 6,287 shares of the business's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $25.18, for a total value of $158,306.66. Following the sale, the insider directly owned 121,150 shares of the company's stock, valued at approximately $3,050,557. The trade was a 4.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Masaru Matsuda sold 8,733 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $25.30, for a total value of $220,944.90. Following the completion of the sale, the insider directly owned 136,932 shares in the company, valued at approximately $3,464,379.60. This represents a 6.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 92,831 shares of company stock valued at $2,295,499 in the last ninety days. Corporate insiders own 9.40% of the company's stock.

Institutional Trading of Arcutis Biotherapeutics

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Johnson Investment Counsel Inc. bought a new position in shares of Arcutis Biotherapeutics in the third quarter worth approximately $30,000. SBI Securities Co. Ltd. raised its holdings in Arcutis Biotherapeutics by 325.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 1,089 shares of the company's stock worth $32,000 after acquiring an additional 833 shares during the last quarter. Global Retirement Partners LLC purchased a new position in Arcutis Biotherapeutics in the 4th quarter worth approximately $35,000. EverSource Wealth Advisors LLC lifted its position in Arcutis Biotherapeutics by 124.0% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,261 shares of the company's stock valued at $37,000 after acquiring an additional 698 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in Arcutis Biotherapeutics by 209.0% in the 4th quarter. NewEdge Advisors LLC now owns 1,545 shares of the company's stock valued at $45,000 after acquiring an additional 1,045 shares in the last quarter.

Key Stories Impacting Arcutis Biotherapeutics

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

• Positive Sentiment: Strong commercial performance and clinical progress: Q1 net product revenue for ZORYVE was $105.4M (up 65% YoY), the company reported positive operating cash flow, submitted an sNDA to expand ZORYVE to infants 3–24 months, completed enrollment in a pediatric MUSE trial, initiated Phase 1a/1b for ARQ‑234, and expanded the salesforce and primary care/pediatrics buildout. These developments support continued top-line growth and pipeline optionality. Read More.
• Positive Sentiment: Analyst stance remains constructive: Brokerages maintain a consensus "Moderate Buy" and a mid‑$30s consensus target, which can buoy investor sentiment as commercial momentum continues. Read More.
• Neutral Sentiment: Mixed Q1 financials: Revenue beat estimates ($105.4M vs. ~$103.7M) but GAAP EPS missed materially (loss of $0.09 vs. expected loss of $0.02). The top-line strength supports commercialization, but the EPS miss highlights continued margin/expense pressure as the company invests in growth. Read More.
• Negative Sentiment: Insider selling: Multiple insiders (including director and executives) sold shares in early May under pre‑arranged Rule 10b5‑1 plans to cover tax withholding on vested awards. While filings state routine/tax reasons, clustered sales can raise short‑term concerns about insider exposure and add selling pressure. Read More.

Arcutis Biotherapeutics Company Profile

Arcutis Biotherapeutics is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapies for immuno-inflammatory skin diseases. The company's research and development efforts center on targeted treatments that address the underlying biology of conditions such as plaque psoriasis, atopic dermatitis, seborrheic dermatitis and vitiligo. Arcutis employs a precision-medicine approach to deliver topical therapies designed to improve efficacy and tolerability compared with existing treatment options.

In August 2022, Arcutis received U.S.

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