Arcutis Biotherapeutics (NASDAQ:ARQT) Trading Down 3.2% After Insider Selling

Key Points

• Arcutis Biotherapeutics' stock fell 3.2% to $20.57 after insider sales, significantly below its previous close of $21.25.
• Insider Howard G. Welgus sold 10,000 shares, and Todd Watanabe made multiple sales totaling over $800,000, reducing their ownership percentages.
• Despite the recent insider selling, several analysts remain positive, with a consensus rating of "Moderate Buy" and a price target around $19.80.

Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT - Get Free Report) shares dropped 3.2% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $20.47 and last traded at $20.57. Approximately 501,136 shares were traded during trading, a decline of 76% from the average daily volume of 2,070,287 shares. The stock had previously closed at $21.25.

Specifically, Director Howard G. Welgus sold 10,000 shares of the stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $18.92, for a total value of $189,200.00. Following the sale, the director directly owned 99,744 shares of the company's stock, valued at approximately $1,887,156.48. This represents a 9.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Todd Watanabe sold 20,739 shares of the firm's stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $20.04, for a total transaction of $415,609.56. Following the completion of the sale, the insider directly owned 846,440 shares in the company, valued at $16,962,657.60. This represents a 2.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, insider Todd Watanabe sold 24,261 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $19.33, for a total value of $468,965.13. Following the sale, the insider directly owned 867,179 shares of the company's stock, valued at $16,762,570.07. This trade represents a 2.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website.

Analyst Ratings Changes

ARQT has been the topic of a number of recent analyst reports. Cowen reaffirmed a "buy" rating on shares of Arcutis Biotherapeutics in a research note on Thursday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Arcutis Biotherapeutics in a research report on Saturday, September 27th. Needham & Company LLC increased their target price on Arcutis Biotherapeutics from $20.00 to $22.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Wall Street Zen raised Arcutis Biotherapeutics from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Finally, The Goldman Sachs Group initiated coverage on Arcutis Biotherapeutics in a research note on Friday, July 25th. They set a "neutral" rating and a $18.00 price objective for the company. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $19.80.

Arcutis Biotherapeutics Stock Performance

The company has a market capitalization of $2.39 billion, a PE ratio of -26.56 and a beta of 2.06. The business's 50-day moving average is $16.34 and its 200-day moving average is $15.05. The company has a debt-to-equity ratio of 0.77, a quick ratio of 3.04 and a current ratio of 3.20.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.13) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.18) by $0.05. The firm had revenue of $81.50 million during the quarter, compared to analyst estimates of $72.70 million. Arcutis Biotherapeutics had a negative return on equity of 62.62% and a negative net margin of 35.40%. On average, research analysts anticipate that Arcutis Biotherapeutics, Inc. will post -1.33 earnings per share for the current year.

Institutional Investors Weigh In On Arcutis Biotherapeutics

Several large investors have recently bought and sold shares of ARQT. Paradigm Biocapital Advisors LP bought a new stake in shares of Arcutis Biotherapeutics during the 1st quarter valued at about $22,918,000. Frazier Life Sciences Management L.P. grew its stake in shares of Arcutis Biotherapeutics by 12.4% during the 2nd quarter. Frazier Life Sciences Management L.P. now owns 9,874,511 shares of the company's stock valued at $138,441,000 after acquiring an additional 1,089,227 shares during the period. Nuveen LLC bought a new position in shares of Arcutis Biotherapeutics during the 1st quarter valued at approximately $12,759,000. Bank of America Corp DE grew its stake in shares of Arcutis Biotherapeutics by 133.5% during the 2nd quarter. Bank of America Corp DE now owns 1,202,513 shares of the company's stock valued at $16,859,000 after acquiring an additional 687,562 shares during the period. Finally, Jupiter Asset Management Ltd. bought a new position in shares of Arcutis Biotherapeutics during the 2nd quarter valued at approximately $5,787,000.

About Arcutis Biotherapeutics

Arcutis Biotherapeutics, Inc, a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis.

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