Arcutis Biotherapeutics (NASDAQ:ARQT) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Arcutis Biotherapeutics from buy to hold, even as the broader analyst community still leans positive. The stock’s overall consensus remains Moderate Buy with a $34 average target price.
• Arcutis posted mixed quarterly results: revenue of $105.4 million beat estimates, but EPS of -$0.09 missed expectations. The results underscore strong sales growth alongside continued profitability pressure.
• Insider selling and analyst activity have been notable, with several executives selling shares in recent months while firms like Guggenheim, TD Cowen, and HC Wainwright maintained or raised bullish targets. Institutional investors also increased holdings in the company during recent reporting periods.

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

A number of other brokerages also recently weighed in on ARQT. Guggenheim increased their price target on shares of Arcutis Biotherapeutics from $34.00 to $35.00 and gave the company a "buy" rating in a report on Friday, February 27th. TD Cowen increased their price target 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. Mizuho reduced their price target 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. Weiss Ratings reissued a "sell (d-)" rating on shares of Arcutis Biotherapeutics in a report on Friday, March 27th. Finally, HC Wainwright increased their price target on shares of Arcutis Biotherapeutics from $30.00 to $34.00 and gave the company a "buy" rating in a report on Thursday, February 26th. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Arcutis Biotherapeutics presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.00.

Arcutis Biotherapeutics Price Performance

NASDAQ ARQT opened at $21.17 on Friday. The company has a current ratio of 2.68, a quick ratio of 2.99 and a debt-to-equity ratio of 0.54. The company has a fifty day simple moving average of $23.65 and a 200 day simple moving average of $25.77. The company has a market cap of $2.65 billion, a P/E ratio of -705.43 and a beta of 1.58. Arcutis Biotherapeutics has a 1 year low of $12.72 and a 1 year high of $31.77.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.07). The firm had revenue of $105.40 million for the quarter, compared to the consensus estimate of $103.68 million. Arcutis Biotherapeutics had a negative return on equity of 1.41% and a negative net margin of 0.57%. On average, sell-side analysts predict that Arcutis Biotherapeutics will post 0.18 EPS for the current year.

Insider Buying and Selling at Arcutis Biotherapeutics

In other news, insider Patrick Burnett sold 6,287 shares of Arcutis Biotherapeutics stock in a transaction that occurred on Monday, March 2nd. The shares were 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 in the company, valued at $3,050,557. This trade represents a 4.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Masaru Matsuda sold 8,733 shares of the business's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $25.30, for a total transaction of $220,944.90. Following the transaction, the insider owned 136,932 shares in the company, valued at approximately $3,464,379.60. The trade was a 6.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 92,831 shares of company stock worth $2,295,499 over the last ninety days. 9.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Arcutis Biotherapeutics

A number of institutional investors have recently modified their holdings of ARQT. AQR Capital Management LLC boosted its position in shares of Arcutis Biotherapeutics by 21.4% in the first quarter. AQR Capital Management LLC now owns 248,196 shares of the company's stock valued at $3,882,000 after acquiring an additional 43,716 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Arcutis Biotherapeutics by 3.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 71,417 shares of the company's stock worth $1,118,000 after purchasing an additional 2,063 shares during the period. Creative Planning lifted its position in Arcutis Biotherapeutics by 8.2% during the second quarter. Creative Planning now owns 19,575 shares of the company's stock worth $274,000 after purchasing an additional 1,477 shares during the period. JPMorgan Chase & Co. lifted its position in Arcutis Biotherapeutics by 1.0% during the second quarter. JPMorgan Chase & Co. now owns 548,789 shares of the company's stock worth $7,694,000 after purchasing an additional 5,407 shares during the period. Finally, Russell Investments Group Ltd. lifted its position in Arcutis Biotherapeutics by 4,562.5% during the second quarter. Russell Investments Group Ltd. now owns 11,190 shares of the company's stock worth $157,000 after purchasing an additional 10,950 shares during the period.

Arcutis Biotherapeutics News Summary

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

• Positive Sentiment: HC Wainwright maintained a Buy rating and $34 price target on Arcutis Biotherapeutics while raising near-term EPS estimates for 2026 quarters, reinforcing the view that earnings could improve as ZORYVE sales scale. Article Title
• Positive Sentiment: Needham also reiterated its Buy rating with a $36 target, helping sentiment by signaling that analysts still see meaningful upside from current levels. Article Title
• Positive Sentiment: The company reported a $105.4 million quarterly revenue beat and highlighted strong ZORYVE momentum, including commercial growth and pipeline progress, which remains a key driver for investor enthusiasm. Article Title
• Neutral Sentiment: Arcutis announced inducement grants to 40 new hires, a routine equity compensation move that signals continued hiring but is not likely to materially change the stock’s near-term outlook. Article Title
• Neutral Sentiment: HC Wainwright’s mix of higher and lower out-year estimates suggests analysts remain constructive overall, but are still fine-tuning the longer-term earnings model. Article Title
• Negative Sentiment: Q1 EPS missed expectations, showing Arcutis is still spending heavily as it grows; that profitability gap could limit upside if investors focus on margins rather than sales growth. Article Title
• Negative Sentiment: Several insiders sold shares under pre-arranged 10b5-1 plans, which is routine, but clustered selling can still weigh on sentiment in the short term. Article Title

About Arcutis Biotherapeutics

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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