Verrica Pharmaceuticals Downgraded by Royal Bank of Canada

Verrica Pharmaceuticals (NASDAQ:VRCA) has faced a downgrade from Royal Bank of Canada, which has changed its rating from "outperform" to "sector perform," as stated in a research note released on Tuesday. This development has drawn attention from investors and market analysts alike.

In recent evaluations, other analysts have also commented on the company. On October 3rd, Needham & Company LLC reaffirmed a "hold" rating, setting a target price of $12.00 for Verrica Pharmaceuticals’ shares. Meanwhile, Brookline Capital Management maintained a "hold" rating in a report dated October 2nd. Additionally, TD Cowen reduced their price target from $15.00 to $10.00, maintaining a "buy" rating for the stock as per a note on October 21st.

MarketBeat.com highlights that currently, three research analysts have rated Verrica Pharmaceuticals with a hold rating while another three have given it a buy rating. The overall consensus rating stands at "Moderate Buy" along with a target price of $11.40.

Current Stock Performance

On Tuesday, the stock of Verrica Pharmaceuticals opened at $1.43, reflecting a drop of 6.5%. The company's 50-day moving average now stands at $1.73, while the 200-day moving average is $5.25. Over the last year, the shares have reached a low of $1.04 and a high of $11.41. With a market capitalization sitting at $61.02 million, the company also shows a P/E ratio of -0.76 and a beta of 1.45, suggesting higher volatility compared to the market.

Recent Financial Results

Verrica Pharmaceuticals released its quarterly earnings on August 14th, where it reported an earnings per share (EPS) of ($0.37), which was better than the expected EPS of ($0.43) by $0.06. The company generated revenue of $5.18 million for the period, surpassing analyst predictions of $4.70 million. However, Verrica has recorded a significant negative net margin at 625.06% and a negative return on equity of 591.84%. Analysts project that for the current fiscal year, the company will post an EPS of -1.5.

Investment Movements

Institutional investors have been adjusting their positions in Verrica Pharmaceuticals lately. Quest Partners LLC invested approximately $50,000 in shares of the company during the second quarter. Key Financial Inc also entered a new position valued at $69,000. Rhumbline Advisers increased its holdings by 20.4%, owning now 26,591 shares worth $194,000 after acquiring an additional 4,514 shares. Renaissance Technologies LLC and Bank of New York Mellon Corp have also made strategic investments in the company.

About the Company

Verrica Pharmaceuticals Inc is a clinical-stage company focusing on dermatological therapies. The firm is working on developing treatments for various skin conditions across the United States. Its key product, YCANTH (VP-102), is currently undergoing phase III clinical trials aimed at treating common warts. The drug has completed phase II trials for the treatment of external genital warts.

This information is essential for anyone interested in understanding the latest developments and market positioning of Verrica Pharmaceuticals, especially following the recent downgrade.

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