Tarsus Pharmaceuticals, Inc. $TARS Shares Acquired by Bank of America Corp DE

Key Points

• Bank of America increased its Tarsus Pharmaceuticals stake by 57.5% in the first quarter, acquiring 436,271 additional shares and bringing its holdings to 1.19 million shares worth approximately $83.8 million. Institutional investors and hedge funds collectively own 90.01% of TARS.
• Tarsus reported second-quarter revenue of $173.9 million, exceeding expectations, while XDEMVY sales rose more than 69% year over year. However, the company’s loss of $0.43 per share was substantially wider than the expected $0.19 loss.
• The company is expanding its pipeline by acquiring Alkeus Pharmaceuticals and its Phase 3 Stargardt disease candidate, while also pursuing a $125 million private placement. The deal offers growth potential but raises concerns about execution, clinical risk and shareholder dilution; analysts maintain a “Moderate Buy” consensus with an average price target of $90.17.

Bank of America Corp DE grew its position in Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS - Free Report) by 57.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,194,377 shares of the company's stock after acquiring an additional 436,271 shares during the quarter. Bank of America Corp DE owned about 2.78% of Tarsus Pharmaceuticals worth $83,786,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Deep Track Capital LP raised its stake in Tarsus Pharmaceuticals by 71.4% in the 3rd quarter. Deep Track Capital LP now owns 3,000,000 shares of the company's stock valued at $178,290,000 after purchasing an additional 1,250,000 shares during the last quarter. Janus Henderson Group PLC lifted its holdings in Tarsus Pharmaceuticals by 34.1% in the 4th quarter. Janus Henderson Group PLC now owns 1,930,325 shares of the company's stock valued at $158,062,000 after purchasing an additional 491,326 shares in the last quarter. M&T Bank Corp boosted its stake in Tarsus Pharmaceuticals by 11,730.0% during the 4th quarter. M&T Bank Corp now owns 437,119 shares of the company's stock worth $35,791,000 after purchasing an additional 433,424 shares during the last quarter. MPM Bioimpact LLC acquired a new stake in Tarsus Pharmaceuticals during the 2nd quarter worth $13,834,000. Finally, Franklin Resources Inc. grew its holdings in shares of Tarsus Pharmaceuticals by 1,419.3% during the fourth quarter. Franklin Resources Inc. now owns 337,016 shares of the company's stock worth $27,595,000 after buying an additional 314,833 shares in the last quarter. 90.01% of the stock is owned by institutional investors and hedge funds.

Tarsus Pharmaceuticals News Summary

Here are the key news stories impacting Tarsus Pharmaceuticals this week:

• Positive Sentiment: XDEMVY sales continued to accelerate. Second-quarter net product sales reached $173.9 million, up more than 69% year over year and ahead of analysts’ expectations of approximately $169.7 million. The company projected 2026 XDEMVY net sales of $685 million to $705 million, supporting the investment case for its approved Demodex blepharitis treatment. Tarsus second-quarter results
• Positive Sentiment: Tarsus is expanding into a potentially significant retinal-disease market. The company agreed to acquire Alkeus Pharmaceuticals and its Phase 3-stage oral candidate gildeuretinol (ALK-001), which targets Stargardt disease. The transaction gives Tarsus a potential blockbuster opportunity in a disease with no FDA-approved therapy and broadens its pipeline beyond XDEMVY. Alkeus acquisition
• Neutral Sentiment: Analyst expectations remain above the current trading level. Recent price targets cited by Quiver Quantitative range from $88 to $105, with a $90 median target, although these targets may not yet fully reflect the Alkeus transaction or updated execution risks.
• Negative Sentiment: The quarterly loss was materially worse than expected. Tarsus reported a loss of $0.43 per share versus consensus estimates for a loss of roughly $0.19 to $0.21, despite revenue exceeding forecasts. The company remains unprofitable, which can increase sensitivity to spending and deal-related costs. Tarsus Q2 earnings report
• Negative Sentiment: The Alkeus deal and financing create near-term execution and dilution concerns. The acquisition has a potential value of up to $800 million, including $450 million in upfront consideration, while Tarsus separately announced a $125 million private placement. Investors may be concerned about capital needs, share dilution and the clinical and regulatory risks of ALK-001. Tarsus Alkeus acquisition announcement Tarsus private placement

Insiders Place Their Bets

In other news, Director William J. Phd Link sold 12,500 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $62.12, for a total value of $776,500.00. Following the transaction, the director owned 106,786 shares of the company's stock, valued at $6,633,546.32. This represents a 10.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey S. Farrow sold 14,396 shares of the company's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $60.95, for a total value of $877,436.20. Following the completion of the transaction, the insider directly owned 56,801 shares in the company, valued at approximately $3,462,020.95. This trade represents a 20.22% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 39,850 shares of company stock valued at $2,452,821. 9.64% of the stock is currently owned by insiders.

Tarsus Pharmaceuticals Price Performance

Shares of TARS stock opened at $64.79 on Friday. The company has a debt-to-equity ratio of 0.21, a current ratio of 3.74 and a quick ratio of 3.71. The company has a market capitalization of $2.79 billion, a PE ratio of -59.44 and a beta of 0.53. The firm's 50-day moving average is $61.39 and its two-hundred day moving average is $64.94. Tarsus Pharmaceuticals, Inc. has a 12 month low of $47.21 and a 12 month high of $85.25.

Tarsus Pharmaceuticals (NASDAQ:TARS - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.43) earnings per share for the quarter, missing the consensus estimate of ($0.19) by ($0.24). The firm had revenue of $173.91 million during the quarter, compared to analysts' expectations of $169.65 million. Tarsus Pharmaceuticals had a negative net margin of 7.67% and a negative return on equity of 13.57%. Analysts predict that Tarsus Pharmaceuticals, Inc. will post -1.45 earnings per share for the current year.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Tarsus Pharmaceuticals in a research report on Friday, July 17th. Wall Street Zen lowered shares of Tarsus Pharmaceuticals from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. HC Wainwright reaffirmed a "buy" rating and set a $88.00 price objective on shares of Tarsus Pharmaceuticals in a research note on Thursday, July 9th. Oppenheimer initiated coverage on shares of Tarsus Pharmaceuticals in a report on Friday, April 24th. They issued an "outperform" rating and a $98.00 price objective for the company. Finally, Guggenheim decreased their target price on shares of Tarsus Pharmaceuticals from $90.00 to $89.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $90.17.

Tarsus Pharmaceuticals Company Profile

Tarsus Pharmaceuticals, Inc is a clinical‐stage biopharmaceutical company focused on developing novel therapies for diseases of the eye and ocular surface. The company's research platform centers on neuro‐effector modulation to address underlying disease mechanisms rather than solely treating symptoms. Tarsus's lead candidate, OC-01 (varenicline solution), is an intranasal formulation in Phase 3 development for the treatment of dry eye disease, a condition affecting millions worldwide and associated with significant patient discomfort and reduced quality of life.

In addition to its dry eye program, Tarsus is advancing preclinical and early‐stage programs targeting other ophthalmic indications, including allergic conjunctivitis and retinal disorders.

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