Arcutis Biotherapeutics (NASDAQ:ARQT) Shares Gap Up on Better-Than-Expected Earnings

Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $12.20, but opened at $13.85. Arcutis Biotherapeutics shares last traded at $13.07, with a volume of 941,841 shares traded.

The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.19. The business had revenue of $71.36 million during the quarter, compared to the consensus estimate of $60.52 million. Arcutis Biotherapeutics had a negative return on equity of 119.11% and a negative net margin of 140.97%.

Analyst Ratings Changes

Several research firms have weighed in on ARQT. Guggenheim reissued a “buy” rating on shares of Arcutis Biotherapeutics in a research report on Monday. Mizuho lifted their target price on shares of Arcutis Biotherapeutics from $19.00 to $20.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 7th. HC Wainwright reissued a “buy” rating and set a $19.00 price target on shares of Arcutis Biotherapeutics in a research note on Monday, January 13th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $20.00 price objective on shares of Arcutis Biotherapeutics in a research report on Wednesday. One analyst has rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $17.00.

Insider Buying and Selling at Arcutis Biotherapeutics

In related news, Director Howard G. Welgus sold 10,000 shares of the business’s stock in a transaction dated Monday, December 2nd. The stock was sold at an average price of $12.51, for a total value of $125,100.00. Following the transaction, the director now owns 161,944 shares in the company, valued at approximately $2,025,919.44. The trade was a 5.82 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Todd Franklin Watanabe sold 15,000 shares of the firm’s stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $15.17, for a total transaction of $227,550.00. Following the sale, the insider now directly owns 823,430 shares of the company’s stock, valued at $12,491,433.10. The trade was a 1.79 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 55,029 shares of company stock worth $756,017 in the last quarter. 9.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Point72 Asset Management L.P. lifted its holdings in Arcutis Biotherapeutics by 617.5% in the fourth quarter. Point72 Asset Management L.P. now owns 1,753,522 shares of the company’s stock worth $24,427,000 after acquiring an additional 1,509,136 shares during the last quarter. Cercano Management LLC acquired a new stake in shares of Arcutis Biotherapeutics during the 4th quarter worth approximately $17,487,000. Millennium Management LLC lifted its holdings in shares of Arcutis Biotherapeutics by 101.3% in the 4th quarter. Millennium Management LLC now owns 2,310,163 shares of the company’s stock worth $32,181,000 after purchasing an additional 1,162,690 shares during the last quarter. Rubric Capital Management LP boosted its position in Arcutis Biotherapeutics by 11.7% during the 3rd quarter. Rubric Capital Management LP now owns 10,966,672 shares of the company’s stock valued at $101,990,000 after purchasing an additional 1,150,000 shares during the period. Finally, Driehaus Capital Management LLC bought a new position in Arcutis Biotherapeutics during the 4th quarter worth $15,278,000.

Arcutis Biotherapeutics Price Performance

The company has a debt-to-equity ratio of 0.67, a current ratio of 2.46 and a quick ratio of 2.38. The stock has a market capitalization of $1.53 billion, a price-to-earnings ratio of -7.43 and a beta of 1.29. The company has a 50-day simple moving average of $13.59 and a two-hundred day simple moving average of $11.41.

About Arcutis Biotherapeutics

Arcutis Biotherapeutics, Inc, a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis.