On Monday, Mizuho, a notable financial institution, maintained its 'Buy' recommendation for Arcutis Biotherapeutics (NASDAQ:ARQT), a late-stage biopharmaceutical company. This comes despite the mixed institutional sentiment towards the firm, which specializes in immune-mediated dermatological diseases and conditions.
The average one-year price target for Arcutis Biotherapeutics as of August 31, 2023, stands at $42.71, suggesting a potential increase of 693.91% from its closing price of $5.38. Price forecasts range from a low of $22.22 to a high of $59.85.
Arcutis Biotherapeutics' projected annual revenue is expected to reach $53 million, marking a substantial growth of 375.62%. However, the company's non-GAAP EPS is projected to be -$4.69.
Institutional sentiment towards the company appears divided. Despite a decrease in the total number of funds or institutions holding positions in Arcutis Biotherapeutics by 8.76% to 323 last quarter, the total shares owned by these institutions saw a marginal increase of 0.44% to 78,147K shares. The average portfolio weight dedicated to ARQT decreased by 21.00% to 0.11%, while the put/call ratio stands at 2.56, indicating a bearish outlook.
Several institutional shareholders adjusted their holdings in Arcutis Biotherapeutics over the previous quarter. Frazier Life Sciences Management maintained its ownership at 14.09%, with no changes reported. Rubric Capital Management increased its stake by 28.35% to now own 7.92% of the company's shares, while SPDR S&P Biotech (NYSE:XBI) ETF raised its ownership by 34.51% to hold a 7% stake. Jennison Associates also expanded its stake by 48.43% to account for 6.96% of the company's shares. However, Polar Capital Holdings slightly reduced its holdings by 0.25%, now owning 5.07% of the company's shares.
Arcutis Biotherapeutics holds a promising pipeline that includes four novel drug candidates currently under development for various inflammatory skin conditions. Its leading product candidate, topical roflumilast, has the potential to set a new standard of care for numerous skin conditions including plaque psoriasis, atopic dermatitis, scalp psoriasis, and seborrheic dermatitis.
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