Arcutis Biotherapeutics (NASDAQ:ARQT) Rating Lowered to “Hold” at Wall Street Zen

Arcutis Biotherapeutics (NASDAQ:ARQT) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday, Wall Street Zen reports.

A number of other research firms have also recently issued reports on ARQT. Guggenheim boosted their target price on Arcutis Biotherapeutics from $38.00 to $44.00 and gave the company a “buy” rating in a research note on Monday, October 19th. TD Cowen raised their price target on Arcutis Biotherapeutics from $35.00 to $40.00 and gave the stock a “buy” rating in a research report on Thursday. Cantor Fitzgerald began coverage on Arcutis Biotherapeutics in a report on Thursday, October 15th. They set an “overweight” rating and a $48.00 price objective on the stock. Morgan Stanley boosted their price objective on Arcutis Biotherapeutics from $34.00 to $38.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Finally, Weiss Ratings upgraded Arcutis Biotherapeutics from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 29th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $39.75.

Arcutis Biotherapeutics Price Performance

Shares of Arcutis Biotherapeutics stock opened at $25.55 on Friday. The company has a quick ratio of 2.66, a current ratio of 2.92 and a debt-to-equity ratio of 0.42. Arcutis Biotherapeutics has a 12 month low of $19.30 and a 12 month high of $34.80. The business has a fifty day simple moving average of $27.16 and a 200 day simple moving average of $25.37. The stock has a market cap of $3.22 billion, a PE ratio of 121.67 and a beta of 1.66.

Arcutis Biotherapeutics (NASDAQ:ARQT) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.06 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.12). The company had revenue of $143.92 million during the quarter, compared to the consensus estimate of $142.59 million. Arcutis Biotherapeutics had a net margin of 5.88% and a return on equity of 14.18%. Research analysts predict that Arcutis Biotherapeutics will post 0.33 EPS for the current year.

Insiders Place Their Bets

In other Arcutis Biotherapeutics news, insider Todd Watanabe sold 4,377 shares of the business’s stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $31.86, for a total value of $139,451.22. Following the sale, the insider owned 712,826 shares in the company, valued at approximately $22,710,636.36. The trade was a 0.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Terrie Curran sold 38,200 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $25.03, for a total value of $956,146.00. Following the transaction, the director directly owned 23,526 shares of the company’s stock, valued at approximately $588,855.78. This trade represents a 61.89% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 123,932 shares of company stock worth $3,553,077 in the last 90 days. Company insiders own 9.40% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Montanova Capital LLC raised its holdings in shares of Arcutis Biotherapeutics by 0.9% in the 2nd quarter. Montanova Capital LLC now owns 12,437,000 shares of the company’s stock valued at $326,098,000 after purchasing an additional 110,000 shares during the period. BlackRock Inc. acquired a new stake in Arcutis Biotherapeutics in the 2nd quarter valued at about $276,502,000. Bank of America Corp DE bought a new position in Arcutis Biotherapeutics during the second quarter worth about $78,330,000. Janus Henderson Group PLC grew its holdings in Arcutis Biotherapeutics by 1.3% during the first quarter. Janus Henderson Group PLC now owns 1,854,566 shares of the company’s stock worth $43,684,000 after purchasing an additional 24,505 shares during the period. Finally, Jupiter Topco LLC bought a new position in Arcutis Biotherapeutics during the second quarter worth about $36,989,000.

Arcutis Biotherapeutics News Summary

Here are the key news stories impacting Arcutis Biotherapeutics this week:

• Positive Sentiment: Arcutis raised its 2026 sales guidance, a sign of improved commercial expectations. However, investors may be weighing whether the stronger outlook is already reflected in the stock. Article: Arcutis Biotherapeutics Raised 2026 Sales Guidance
• Positive Sentiment: The company began enrolling participants in a Phase 3 study of ZORYVE cream 0.3% for moderate-to-severe atopic dermatitis. Success could expand the medicine’s potential market, though this remains a clinical-development catalyst. Article: Arcutis Begins Enrolling Phase 3 ZORYVE Study
• Neutral Sentiment: Arcutis granted stock options and restricted stock units to six new employees. The awards create some share dilution, but are routine hiring-related inducements and are not a major business update. Article: Arcutis Reports Inducement Grants
• Negative Sentiment: Third-quarter EPS was $0.06, below analyst expectations of roughly $0.17–$0.18. Revenue of $143.92 million narrowly topped forecasts, but the earnings miss appears to be the more immediate sentiment driver. Article: Arcutis Falls After Q3 Earnings Miss
• Negative Sentiment: HC Wainwright cut its EPS estimates for the first three quarters of 2027, including reducing its Q2 forecast from $0.19 to $0.14. The lowered projections add to concerns following the quarterly earnings shortfall.

Arcutis Biotherapeutics Company Profile

Arcutis Biotherapeutics, Inc is a commercial-stage biopharmaceutical company focused on developing and delivering treatments for dermatologic conditions. The company’s portfolio is centered on therapies designed to address inflammatory skin diseases, with an emphasis on nonsteroidal topical medicines that may help patients manage chronic conditions.

Arcutis’s lead product is ZORYVE (roflumilast), a topical phosphodiesterase-4 inhibitor. ZORYVE has received U.S. Food and Drug Administration approvals for multiple dermatological uses, including plaque psoriasis, seborrheic dermatitis and atopic dermatitis, in different cream and foam formulations.