Journey Medical (NASDAQ:DERM) Stock Falls 1.6% - Here's Why

Key Points

• Journey Medical shares fell 1.6% to $6.61 on Friday, with trading volume about 29% below the average daily level.
• Analyst sentiment remains mixed: B. Riley raised its price target to $15 and Wall Street Zen upgraded the stock to “buy,” while Weiss Ratings maintained a “sell” rating. The overall consensus is “Hold,” with an average target of $14.
• The company slightly exceeded quarterly expectations, reporting a loss of $0.01 per share versus the expected $0.02 loss and revenue of $18.51 million versus the $18.36 million consensus estimate. Institutional ownership stands at 7.25%, with several investors adding positions during the second quarter.

Journey Medical Corporation (NASDAQ:DERM - Get Free Report) fell 1.6% during trading on Friday. The stock traded as low as $6.47 and last traded at $6.61. Approximately 126,129 shares traded hands during trading, a decline of 29% from the average daily volume of 176,642 shares. The stock had previously closed at $6.72.

Analyst Upgrades and Downgrades

DERM has been the topic of a number of research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Journey Medical in a research report on Friday, July 17th. B. Riley Financial restated a "buy" rating and set a $15.00 price objective (up from $12.00) on shares of Journey Medical in a report on Thursday, August 13th. Finally, Wall Street Zen raised shares of Journey Medical from a "hold" rating to a "buy" rating in a research note on Saturday, June 13th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $14.00.

Journey Medical Price Performance

The firm has a market capitalization of $186.56 million, a PE ratio of -30.05 and a beta of 1.10. The business has a 50-day moving average of $6.97 and a 200 day moving average of $6.36. The company has a current ratio of 1.59, a quick ratio of 1.41 and a debt-to-equity ratio of 0.64.

Journey Medical (NASDAQ:DERM - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.02) by $0.01. Journey Medical had a negative net margin of 8.95% and a negative return on equity of 20.23%. The firm had revenue of $18.51 million for the quarter, compared to the consensus estimate of $18.36 million. As a group, research analysts anticipate that Journey Medical Corporation will post -0.02 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wasatch Advisors LP grew its position in Journey Medical by 34.0% in the 2nd quarter. Wasatch Advisors LP now owns 2,858,930 shares of the company's stock worth $20,241,000 after purchasing an additional 725,560 shares in the last quarter. Punch & Associates Investment Management Inc. bought a new position in shares of Journey Medical during the 2nd quarter worth approximately $3,795,000. Pale Fire Capital SE lifted its position in shares of Journey Medical by 9.7% during the 2nd quarter. Pale Fire Capital SE now owns 528,584 shares of the company's stock worth $3,742,000 after buying an additional 46,597 shares in the last quarter. J. Goldman & Co LP purchased a new position in shares of Journey Medical in the 2nd quarter worth approximately $974,000. Finally, BlackRock Inc. purchased a new position in shares of Journey Medical in the 2nd quarter worth approximately $715,000. 7.25% of the stock is currently owned by hedge funds and other institutional investors.

Journey Medical Company Profile

Journey Medical Corporation NASDAQ: DERM is a commercial-stage pharmaceutical company focused on developing and marketing prescription therapies for dermatological conditions. The company targets areas of significant unmet need, including acne, hyperhidrosis, fungal infections and other medical skin disorders.

Journey Medical's product portfolio has included Qbrexza (glycopyrronium tosylate), a topical treatment for primary axillary hyperhidrosis, as well as Targadox (doxycycline hyclate) for the treatment of severe acne and Exelderm (sulconazole nitrate) for certain fungal skin infections.

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