Tarsus Pharmaceuticals (NASDAQ:TARS) Downgraded by Wall Street Zen to Hold

Key Points

• Tarsus Pharmaceuticals was downgraded by Wall Street Zen from buy to hold, adding to a mixed analyst picture that now stands at a Moderate Buy overall with an average price target of $90.67.
• The stock closed at about $63.16, well below its 52-week high of $85.25, while the company showed solid liquidity but remained unprofitable with a negative P/E and forecasted -$0.59 EPS for the year.
• Recent insider activity was notable, with directors and executives selling shares in June; meanwhile, institutional ownership remains high at about 90%, led by firms such as Invesco and JPMorgan Chase.

Tarsus Pharmaceuticals (NASDAQ:TARS - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

Other analysts also recently issued reports about the company. Zacks Research downgraded Tarsus Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, February 25th. Oppenheimer started coverage on shares of Tarsus Pharmaceuticals in a research report on Friday, April 24th. They set an "outperform" rating and a $98.00 price objective on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Tarsus Pharmaceuticals in a research note on Tuesday, April 21st. HC Wainwright restated a "buy" rating and issued a $88.00 target price on shares of Tarsus Pharmaceuticals in a report on Monday, May 4th. Finally, Lifesci Capital raised shares of Tarsus Pharmaceuticals to a "strong-buy" rating in a research note on Monday, March 16th. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $90.67.

Tarsus Pharmaceuticals Stock Performance

Shares of TARS stock opened at $63.16 on Friday. Tarsus Pharmaceuticals has a 1 year low of $38.51 and a 1 year high of $85.25. 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 stock's 50 day simple moving average is $63.18 and its two-hundred day simple moving average is $69.38. The company has a market cap of $2.72 billion, a PE ratio of -55.40 and a beta of 0.49.

Tarsus Pharmaceuticals (NASDAQ:TARS - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.16) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.40) by $0.24. The business had revenue of $162.05 million during the quarter, compared to analyst estimates of $149.60 million. Tarsus Pharmaceuticals had a negative return on equity of 14.19% and a negative net margin of 9.02%. Research analysts predict that Tarsus Pharmaceuticals will post -0.59 earnings per share for the current year.

Insider Transactions at Tarsus Pharmaceuticals

In other news, Director Katherine Goodrich sold 2,954 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $62.08, for a total transaction of $183,384.32. Following the transaction, the director directly owned 2,233 shares of the company's stock, valued at approximately $138,624.64. This trade represents a 56.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey S. Farrow sold 14,396 shares of the business's stock in a transaction that occurred 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 sale, the insider owned 56,801 shares of the company's stock, valued at $3,462,020.95. The trade was 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 three months, insiders have sold 29,850 shares of company stock valued at $1,837,321. 9.64% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tarsus Pharmaceuticals

Several hedge funds have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Tarsus Pharmaceuticals by 5.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,143 shares of the company's stock worth $1,137,000 after buying an additional 1,217 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Tarsus Pharmaceuticals by 2.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 71,220 shares of the company's stock valued at $3,659,000 after acquiring an additional 1,394 shares in the last quarter. Jane Street Group LLC lifted its stake in Tarsus Pharmaceuticals by 105.8% in the first quarter. Jane Street Group LLC now owns 10,456 shares of the company's stock worth $537,000 after acquiring an additional 190,000 shares during the period. JPMorgan Chase & Co. lifted its stake in Tarsus Pharmaceuticals by 402.7% in the second quarter. JPMorgan Chase & Co. now owns 140,610 shares of the company's stock worth $5,696,000 after acquiring an additional 112,637 shares during the period. Finally, Invesco Ltd. grew its holdings in Tarsus Pharmaceuticals by 12.3% during the 2nd quarter. Invesco Ltd. now owns 928,501 shares of the company's stock worth $37,614,000 after acquiring an additional 101,978 shares in the last quarter. 90.01% of the stock is currently owned by hedge funds and other institutional investors.

About Tarsus Pharmaceuticals

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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