Perhaps timely catching Arcutis Biotherapeutics Inc. (ARQT) would be a good idea

Arcutis Biotherapeutics Inc. (NASDAQ: ARQT) stock jumped 0.49% on Monday to $16.32 against a previous-day closing price of $16.24. With 0.89 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.82 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $16.85 whereas the lowest price it dropped to was $16.10. The 52-week range on ARQT shows that it touched its highest point at $27.40 and its lowest point at $12.81 during that stretch. It currently has a 1-year price target of $55.33.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ARQT was up-trending over the past week, with a rise of 15.58%, but this was up by 14.93% over a month. Three-month performance dropped to -5.99% while six-month performance fell -24.16%. The stock gained 7.72% in the past year, while it has gained 10.27% so far this year. A look at the trailing 12-month EPS for ARQT yields -5.89 with Next year EPS estimates of -4.62. For the next quarter, that number is -1.39. This implies an EPS growth rate of -9.80% for this year and 22.10% for next year.

Float and Shares Shorts:

At present, 60.93 million ARQT shares are outstanding with a float of 58.93 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.85 million, which was 11.39% higher than short shares on Sep 14, 2022. In addition to Mr. Todd Franklin Watanabe M.A. as the firm’s Pres, CEO & Director, Dr. Bhaskar Chaudhuri Ph.D. serves as its Co-Founder & Independent Director.


Institutional Ownership:

Through their ownership of 80.56% of ARQT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.05% of ARQT, in contrast to 28.13% held by mutual funds. Shares owned by individuals account for 26.67%. As the largest shareholder in ARQT with 13.95% of the stake, Fidelity Management & Research Co holds 8,501,050 shares worth 8,501,050. A second-largest stockholder of ARQT, Point72 Asset Management LP, holds 3,785,277 shares, controlling over 6.21% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ARQT, holding 2,706,142 shares or 4.44% stake. With a 4.88% stake in ARQT, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 2,975,445 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.53% of ARQT stock, is the second-largest Mutual Fund holder. It holds 1,539,117 shares valued at 22.78 million. Polar Capital Funds Plc – Biotech holds 2.46% of the stake in ARQT, owning 1,500,000 shares worth 22.2 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ARQT since 9 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ARQT analysts setting a high price target of $80.00 and a low target of $46.00, the average target price over the next 12 months is $55.33. Based on these targets, ARQT could surge 390.2% to reach the target high and rise by 181.86% to reach the target low. Reaching the average price target will result in a growth of 239.03% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ARQT will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of -$5.85 being high and -$6.25 being low. For ARQT, this leads to a yearly average estimate of -$5.93. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Arcutis Biotherapeutics Inc. surprised analysts by -$0.16 when it reported -$1.89 EPS against a consensus estimate of -$1.73. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is -$1.37 and the low estimate is -$1.42. The average estimate for the next quarter is thus -$1.39.

Summary of Insider Activity:

Insiders traded ARQT stock several times over the past three months with 2 Buys and 5 Sells. In these transactions, 5,895 shares were bought while 8,598 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 53 over the past year. The total number of shares bought during that period was 533,212 while 1,570,416 shares were sold.

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