Arcutis Biotherapeutics (NASDAQ:ARQT) Shares Down 4.7% - Here's Why

Key Points

• Arcutis Biotherapeutics shares fell 4.7% to approximately $24.91 in midday trading, with volume down 62% from the average session.
• Analyst sentiment remains broadly positive: six analysts rate the stock a Buy and three rate it a Hold, producing a consensus “Moderate Buy” rating and an average price target of $35.57.
• The company exceeded quarterly expectations, reporting $0.11 in EPS versus a $0.06 estimate and revenue of $129.86 million versus $118.85 million expected; however, insiders sold 75,551 shares worth about $1.92 million over the past three months.

Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT - Get Free Report)'s stock price was down 4.7% during trading on Thursday . The stock traded as low as $24.42 and last traded at $24.9050. 609,744 shares traded hands during mid-day trading, a decline of 62% from the average session volume of 1,621,528 shares. The stock had previously closed at $26.14.

Analyst Upgrades and Downgrades

ARQT has been the subject of a number of research reports. Needham & Company LLC raised their target price on shares of Arcutis Biotherapeutics from $36.00 to $40.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Guggenheim upped their price target on shares of Arcutis Biotherapeutics from $35.00 to $38.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Wall Street Zen raised shares of Arcutis Biotherapeutics from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 8th. Weiss Ratings downgraded shares of Arcutis Biotherapeutics from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, September 8th. Finally, Morgan Stanley upped their target price on Arcutis Biotherapeutics from $34.00 to $38.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Arcutis Biotherapeutics currently has a consensus rating of "Moderate Buy" and an average target price of $35.57.

Arcutis Biotherapeutics Stock Down 4.9%

The company has a market cap of $3.12 billion, a P/E ratio of 118.36 and a beta of 1.50. The stock has a 50-day moving average of $25.96 and a 200 day moving average of $24.37. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.92 and a quick ratio of 2.67.

Arcutis Biotherapeutics (NASDAQ:ARQT - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.05. Arcutis Biotherapeutics had a net margin of 6.15% and a return on equity of 15.05%. The firm had revenue of $129.86 million for the quarter, compared to the consensus estimate of $118.85 million. Research analysts anticipate that Arcutis Biotherapeutics, Inc. will post 0.4 earnings per share for the current year.

Insider Buying and Selling at Arcutis Biotherapeutics

In related news, Director Terrie Curran sold 38,200 shares of Arcutis Biotherapeutics stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $25.03, for a total value of $956,146.00. Following the transaction, the director directly owned 23,526 shares of the company's stock, valued at $588,855.78. This trade represents a 61.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Patrick Burnett sold 6,700 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $26.08, for a total transaction of $174,736.00. Following the transaction, the insider owned 119,289 shares of the company's stock, valued at approximately $3,111,057.12. This represents a 5.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 75,551 shares of company stock worth $1,924,116 in the last three months. Company insiders own 9.40% of the company's stock.

Institutional Trading of Arcutis Biotherapeutics

Several institutional investors and hedge funds have recently modified their holdings of the business. Arizona State Retirement System grew its position in Arcutis Biotherapeutics by 1.7% in the 2nd quarter. Arizona State Retirement System now owns 30,802 shares of the company's stock worth $808,000 after purchasing an additional 521 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Arcutis Biotherapeutics by 124.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,261 shares of the company's stock worth $37,000 after buying an additional 698 shares in the last quarter. DNB Asset Management AS boosted its stake in shares of Arcutis Biotherapeutics by 3.0% in the 4th quarter. DNB Asset Management AS now owns 27,786 shares of the company's stock worth $807,000 after buying an additional 802 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in shares of Arcutis Biotherapeutics by 0.4% in the 1st quarter. Bank of New York Mellon Corp now owns 305,532 shares of the company's stock worth $7,198,000 after buying an additional 1,104 shares during the last quarter. Finally, KBC Group NV grew its holdings in shares of Arcutis Biotherapeutics by 43.2% in the first quarter. KBC Group NV now owns 4,376 shares of the company's stock valued at $103,000 after acquiring an additional 1,321 shares in the last quarter.

Arcutis Biotherapeutics Company Profile

Arcutis Biotherapeutics, Inc is a biopharmaceutical company focused on developing and commercializing treatments for immune-mediated dermatological conditions. The company's research and development activities are centered on therapies intended to address significant unmet needs in inflammatory skin diseases.

Arcutis's primary commercial product is ZORYVE (roflumilast), a topical, nonsteroidal phosphodiesterase-4 inhibitor. The product is available in multiple formulations and strengths for certain patients with plaque psoriasis, seborrheic dermatitis and atopic dermatitis.

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