Arcutis Biotherapeutics (NASDAQ:ARQT) Stock Price Up 7.1% - Time to Buy?

Key Points

• Arcutis Biotherapeutics shares rose 7.1% to about $25.19, though trading volume was roughly 70% below the average session level.
• Analyst sentiment remains favorable, with six Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $35.57.
• The company exceeded quarterly expectations, reporting $0.11 in earnings per share versus a $0.06 estimate and revenue of $129.86 million versus $118.85 million expected; however, insiders have sold 75,551 shares worth about $1.92 million over the past three months.

Shares of Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT - Get Free Report) shot up 7.1% during trading on Wednesday . The company traded as high as $25.00 and last traded at $25.1870. Approximately 476,791 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 1,601,054 shares. The stock had previously closed at $23.51.

Analyst Ratings Changes

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

Arcutis Biotherapeutics Stock Up 6.7%

The company has a fifty day simple moving average of $26.01 and a 200-day simple moving average of $24.39. The company has a quick ratio of 2.67, a current ratio of 2.92 and a debt-to-equity ratio of 0.46. The firm has a market cap of $3.15 billion, a P/E ratio of 118.82 and a beta of 1.50.

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

Insiders Place Their Bets

In other news, insider Masaru Matsuda sold 9,989 shares of the company's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $25.03, for a total value of $250,024.67. Following the completion of the transaction, the insider owned 116,182 shares of the company's stock, valued at $2,908,035.46. This represents a 7.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Patrick Burnett sold 6,700 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $26.08, for a total value of $174,736.00. Following the sale, the insider owned 119,289 shares of the company's stock, valued at $3,111,057.12. This represents a 5.32% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 75,551 shares of company stock worth $1,924,116 in the last three months. 9.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Arcutis Biotherapeutics

Institutional investors and hedge funds have recently modified their holdings of the stock. Tidal Investments LLC acquired a new position in shares of Arcutis Biotherapeutics during the second quarter worth $606,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Arcutis Biotherapeutics in the 2nd quarter worth $84,000. Arizona State Retirement System boosted its position in shares of 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. Nykredit A S purchased a new position in Arcutis Biotherapeutics during the 2nd quarter worth $63,000. Finally, Montanova Capital LLC raised its stake in Arcutis Biotherapeutics by 0.9% in the second quarter. Montanova Capital LLC now owns 12,437,000 shares of the company's stock valued at $326,098,000 after buying an additional 110,000 shares during the last quarter.

About Arcutis Biotherapeutics

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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