Verrica Pharmaceuticals (NASDAQ:VRCA) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Verrica Pharmaceuticals from a "hold" to a strong sell.
• Analyst coverage is mixed (one Buy, one Hold, two Sell) with a consensus rating of Reduce and a consensus target price of $17.00.
• The stock trades around $5.82 with a market cap of about $99.99M; the company reported a surprise quarterly loss of ($0.51) EPS (miss) and $5.09M revenue (beat), and is a clinical‑stage biopharma developing topical candidates including VP‑102 and VP‑103.

Verrica Pharmaceuticals (NASDAQ:VRCA - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Tuesday,Zacks.com reports.

Several other analysts also recently issued reports on the stock. TD Cowen reissued a "buy" rating on shares of Verrica Pharmaceuticals in a research note on Wednesday, January 7th. upgraded Verrica Pharmaceuticals from a "hold" rating to a "buy" rating and set a $17.00 price target on the stock in a report on Thursday, December 18th. Wall Street Zen lowered Verrica Pharmaceuticals from a "buy" rating to a "hold" rating in a research report on Saturday, February 7th. Finally, Loop Capital set a $17.00 price objective on Verrica Pharmaceuticals in a research note on Thursday, December 18th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $17.00.

Verrica Pharmaceuticals Stock Performance

Shares of VRCA opened at $5.82 on Tuesday. Verrica Pharmaceuticals has a one year low of $3.28 and a one year high of $9.82. The company has a 50-day moving average of $5.79 and a two-hundred day moving average of $5.91. The stock has a market cap of $99.99 million, a price-to-earnings ratio of -3.68 and a beta of 1.42. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.59 and a quick ratio of 2.45.

Verrica Pharmaceuticals (NASDAQ:VRCA - Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The company reported ($0.51) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.43) by ($0.08). The firm had revenue of $5.09 million for the quarter, compared to analyst estimates of $4.52 million. On average, equities research analysts expect that Verrica Pharmaceuticals will post -1.46 earnings per share for the current year.

Institutional Investors Weigh In On Verrica Pharmaceuticals

A number of institutional investors have recently modified their holdings of VRCA. AQR Capital Management LLC increased its stake in shares of Verrica Pharmaceuticals by 306.7% in the first quarter. AQR Capital Management LLC now owns 58,711 shares of the company's stock worth $26,000 after acquiring an additional 44,275 shares during the last quarter. Qube Research & Technologies Ltd acquired a new stake in Verrica Pharmaceuticals during the second quarter valued at $28,000. Invesco Ltd. boosted its position in Verrica Pharmaceuticals by 64.8% during the first quarter. Invesco Ltd. now owns 74,388 shares of the company's stock valued at $33,000 after purchasing an additional 29,256 shares during the last quarter. Bridgeway Capital Management LLC purchased a new position in Verrica Pharmaceuticals in the third quarter valued at about $52,000. Finally, Goldman Sachs Group Inc. grew its stake in Verrica Pharmaceuticals by 23.3% in the first quarter. Goldman Sachs Group Inc. now owns 139,055 shares of the company's stock valued at $61,000 after purchasing an additional 26,308 shares in the last quarter. Institutional investors and hedge funds own 42.45% of the company's stock.

About Verrica Pharmaceuticals

Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica's approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.

Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.

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