Tarsus Pharmaceuticals (NASDAQ:TARS) Trading Up 6.7% - Here's Why

Key Points

• Tarsus Pharmaceuticals shares rose 6.7% to about $64.95 in Thursday trading, with volume below its daily average.
• Analyst sentiment is generally positive: multiple firms reiterated or initiated buy/outperform ratings, and MarketBeat shows a consensus Moderate Buy with an average target price of $90.67.
• The company recently beat earnings expectations, reporting a smaller-than-expected loss and revenue of $162.05 million versus estimates of $149.60 million, while insiders also sold shares in recent transactions.

Shares of Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS - Get Free Report) were up 6.7% during mid-day trading on Thursday . The stock traded as high as $64.74 and last traded at $64.9450. 497,209 shares were traded during trading, a decline of 24% from the average session volume of 652,070 shares. The stock had previously closed at $60.89.

Analysts Set New Price Targets

A number of research firms have commented on TARS. HC Wainwright reiterated a "buy" rating and set a $88.00 target price on shares of Tarsus Pharmaceuticals in a research report on Monday, May 4th. Lifesci Capital upgraded shares of Tarsus Pharmaceuticals to a "strong-buy" rating in a research report on Monday, March 16th. Wall Street Zen raised shares of Tarsus Pharmaceuticals from a "hold" rating to a "buy" rating in a research note on Sunday. Weiss Ratings restated a "sell (d-)" rating on shares of Tarsus Pharmaceuticals in a research report on Tuesday, April 21st. Finally, Oppenheimer started coverage on shares of Tarsus Pharmaceuticals in a research report on Friday, April 24th. They issued an "outperform" rating and a $98.00 price target on the stock. Two 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 assigned a Sell rating to the company. According to data from MarketBeat.com, Tarsus Pharmaceuticals has a consensus rating of "Moderate Buy" and a consensus target price of $90.67.

Tarsus Pharmaceuticals Trading Up 5.5%

The company has a market cap of $2.76 billion, a price-to-earnings ratio of -56.22 and a beta of 0.50. The business has a 50 day simple moving average of $62.08 and a 200 day simple moving average of $68.32. The company has a debt-to-equity ratio of 0.21, a current ratio of 3.74 and a quick ratio of 3.71.

Tarsus Pharmaceuticals (NASDAQ:TARS - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported ($0.16) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.40) by $0.24. Tarsus Pharmaceuticals had a negative return on equity of 14.19% and a negative net margin of 9.02%.The firm had revenue of $162.05 million during the quarter, compared to analysts' expectations of $149.60 million. As a group, equities analysts forecast that Tarsus Pharmaceuticals, Inc. will post -0.59 EPS for the current year.

Insider Activity at Tarsus Pharmaceuticals

In other Tarsus Pharmaceuticals news, insider Jeffrey S. Farrow sold 14,396 shares of the firm'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 transaction of $877,436.20. Following the completion of the sale, the insider directly owned 56,801 shares in the company, valued at $3,462,020.95. This trade represents a 20.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Bobak R. Azamian sold 10,000 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $61.55, for a total value of $615,500.00. Following the transaction, the chief executive officer owned 847,991 shares in the company, valued at approximately $52,193,846.05. This trade represents a 1.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 39,850 shares of company stock worth $2,452,821 in the last quarter. Corporate insiders own 9.64% of the company's stock.

Hedge Funds Weigh In On Tarsus Pharmaceuticals

Hedge funds have recently bought and sold shares of the business. Seven Fleet Capital Management LP raised its stake in Tarsus Pharmaceuticals by 340.0% in the 1st quarter. Seven Fleet Capital Management LP now owns 19,800 shares of the company's stock worth $1,389,000 after purchasing an additional 15,300 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Tarsus Pharmaceuticals by 139.2% during the 1st quarter. Parallel Advisors LLC now owns 500 shares of the company's stock worth $35,000 after purchasing an additional 291 shares in the last quarter. Bank of America Corp DE grew its position in shares of Tarsus Pharmaceuticals by 57.5% during the 1st quarter. Bank of America Corp DE now owns 1,194,377 shares of the company's stock worth $83,786,000 after purchasing an additional 436,271 shares in the last quarter. Janus Henderson Group PLC increased its holdings in shares of Tarsus Pharmaceuticals by 16.1% during the first quarter. Janus Henderson Group PLC now owns 2,240,963 shares of the company's stock worth $157,223,000 after purchasing an additional 310,638 shares during the period. Finally, Tri Locum Partners LP bought a new position in shares of Tarsus Pharmaceuticals during the first quarter worth approximately $17,719,000. 90.01% of the stock is owned by 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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