Arcutis Biotherapeutics (NASDAQ:ARQT) Insider Todd Watanabe Sells 4,377 Shares of Stock

Key Points

• Arcutis insider Todd Watanabe sold 4,377 shares for about $139,451 to cover tax withholding on vested equity awards; he retained 712,826 shares.
• Quarterly revenue of $143.92 million slightly beat estimates, but EPS of $0.06 fell short of the $0.18 consensus.
• Analyst sentiment remained positive: eight analysts rated ARQT Buy and two Hold, with a consensus price target of $39.12.

Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT - Get Free Report) insider Todd Watanabe sold 4,377 shares of the stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $31.86, for a total value of $139,451.22. Following the completion of the transaction, the insider directly owned 712,826 shares of the company's stock, valued at approximately $22,710,636.36. This represents a 0.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Arcutis Biotherapeutics Price Performance

Shares of NASDAQ ARQT traded up $2.05 during mid-day trading on Wednesday, reaching $34.05. The company's stock had a trading volume of 2,654,353 shares, compared to its average volume of 1,836,721. The stock has a 50-day moving average of $26.93 and a two-hundred day moving average of $25.33. The company has a debt-to-equity ratio of 0.46, a quick ratio of 2.67 and a current ratio of 2.92. The stock has a market capitalization of $4.28 billion, a P/E ratio of 162.15 and a beta of 1.66. Arcutis Biotherapeutics, Inc. has a 1-year low of $19.30 and a 1-year high of $34.80.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.06 EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.12). Arcutis Biotherapeutics had a net margin of 6.15% and a return on equity of 15.05%. The business had revenue of $143.92 million during the quarter, compared to analyst estimates of $142.59 million. On average, equities research analysts anticipate that Arcutis Biotherapeutics, Inc. will post 0.43 EPS for the current fiscal year.

Analysts Set New Price Targets

Several analysts recently commented on ARQT shares. Wall Street Zen downgraded shares of Arcutis Biotherapeutics from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 10th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $39.00 target price on shares of Arcutis Biotherapeutics in a report on Thursday, October 8th. Needham & Company LLC raised their price target on Arcutis Biotherapeutics from $36.00 to $40.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Cantor Fitzgerald started coverage on Arcutis Biotherapeutics in a research report on Thursday, October 15th. They issued an "overweight" rating and a $48.00 price target on the stock. Finally, Morgan Stanley upped their price objective on Arcutis Biotherapeutics from $34.00 to $38.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Arcutis Biotherapeutics currently has a consensus rating of "Moderate Buy" and a consensus target price of $39.12.

Hedge Funds Weigh In On Arcutis Biotherapeutics

Several hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE lifted its stake in shares of Arcutis Biotherapeutics by 32.7% during the first quarter. Bank of America Corp DE now owns 2,221,289 shares of the company's stock worth $52,334,000 after purchasing an additional 547,835 shares in the last quarter. Tejara Capital Ltd acquired a new position in Arcutis Biotherapeutics during the 2nd quarter worth approximately $2,965,000. Kornitzer Capital Management Inc. KS grew its position in Arcutis Biotherapeutics by 55.1% in the first quarter. Kornitzer Capital Management Inc. KS now owns 175,870 shares of the company's stock valued at $4,143,000 after acquiring an additional 62,485 shares in the last quarter. Sei Investments Co. lifted its position in shares of Arcutis Biotherapeutics by 97.7% during the first quarter. Sei Investments Co. now owns 206,141 shares of the company's stock worth $4,857,000 after purchasing an additional 101,855 shares in the last quarter. Finally, Legal & General Group Plc purchased a new position in shares of Arcutis Biotherapeutics in the second quarter valued at $2,643,000.

Key Stories Impacting Arcutis Biotherapeutics

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

• Positive Sentiment: Third-quarter revenue was $143.92 million, slightly above analysts’ $142.59 million estimate, providing a positive counterpoint to the earnings shortfall. MarketBeat earnings report
• Neutral Sentiment: Several executives sold shares to cover tax withholding on vested equity awards. Most sales were relatively small; EVP Masaru Matsuda also sold 40,000 shares under a pre-arranged Rule 10b5-1 plan, reducing his reported holdings by 26.44%. The stated tax-related and planned nature of the transactions makes them less clearly bearish, though the larger sale may draw investor attention. SEC insider filing
• Negative Sentiment: Adjusted quarterly earnings were $0.06 per share, below consensus estimates of approximately $0.17–$0.18 and unchanged from a year earlier. The miss could weigh on sentiment despite the revenue beat. Zacks earnings report

Arcutis Biotherapeutics Company Profile

Arcutis Biotherapeutics, Inc is a commercial-stage biopharmaceutical company focused on developing and delivering treatments for dermatologic conditions. The company's portfolio is centered on therapies designed to address inflammatory skin diseases, with an emphasis on nonsteroidal topical medicines that may help patients manage chronic conditions.

Arcutis's lead product is ZORYVE (roflumilast), a topical phosphodiesterase-4 inhibitor. ZORYVE has received U.S. Food and Drug Administration approvals for multiple dermatological uses, including plaque psoriasis, seborrheic dermatitis and atopic dermatitis, in different cream and foam formulations.

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