Verrica Pharmaceuticals Inc. Sees Significant Decline in Short Interest

Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) has experienced a notable decrease in short interest for December. As reported on December 15th, the short interest fell to 2,000,000 shares, marking a 34.2% decline from the previous total of 3,040,000 shares on November 30th. With an average trading volume of 891,600 shares, this results in a days-to-cover ratio of 2.2 days.

Recent Analyst Ratings

Several research analysts have recently commented on Verrica Pharmaceuticals. TD Cowen downgraded their price target from $15.00 to $10.00 while maintaining a “buy” rating for the company in a report dated October 21st. Brookline Capital Management reiterated a “hold” rating for Verrica on October 2nd, while HC Wainwright shifted their rating from “buy” to “neutral” on November 6th. Furthermore, Royal Bank of Canada changed its assessment from “outperform” to “sector perform,” reducing its price target from $11.00 to $2.00 on November 5th. Lastly, Needham & Company LLC also reinforced a “hold” rating on December 20th. Overall, four analysts suggest holding the stock, and one recommends buying, leading to an average rating of “Hold” with a target price of $9.50, based on data from MarketBeat.com.

Institutional Investments

Several institutional investors have adjusted their positions in Verrica Pharmaceuticals recently. Simplify Asset Management Inc. established a new position in the second quarter valued at $2,041,000. In the third quarter, XTX Topco Ltd acquired shares worth approximately $335,000, while Verition Fund Management LLC bought in for around $89,000. Furthermore, State Street Corp increased its holdings by 13.5%, owning 512,821 shares valued at $744,000 after purchasing an additional 61,041 shares in the last quarter. Sanctuary Advisors LLC also entered the stock with a position worth about $87,000. Institutional and hedge fund investors control around 42.45% of Verrica's stock.

Performance Overview

Verrica Pharmaceuticals opened at $0.70 on Monday. Over the past year, the stock reached a low of $0.61 and a high of $11.41. The company holds a market capitalization of $31.92 million, with a P/E ratio of -0.38 and a beta of 1.40. Its financial metrics include a debt-to-equity ratio of 29.58, a quick ratio of 1.22, and a current ratio of 1.34. The fifty-day moving average stands at $1.03, while the two-hundred day moving average is $3.24.

In its recent quarterly earnings report posted on November 4th, Verrica Pharmaceuticals reported a loss of ($0.49) per share, which was below the expected estimate of ($0.37) by $0.12. The company recorded a net margin of -625.06% and a return on equity of -591.84%. Revenues for the quarter amounted to ($1.78) million, far below analyst predictions of $7.53 million. Analysts anticipate that Verrica will report earnings of -$1.42 per share for the current fiscal year.

Company Overview

Verrica Pharmaceuticals Inc. is a clinical-stage company focused on dermatology therapeutics aimed at treating skin diseases in the United States. Its main product, YCANTH (VP-102), is currently in phase III clinical trials for the treatment of common warts and has completed phase II trials for treating external genital warts.

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