Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) director Howard G. Welgus has sold shares of the company's stock, according to recent filings with the Securities and Exchange Commission. On October 1, 2024, Welgus sold a total of 10,000 shares of common stock at an average price of $9.2616 per share, amounting to a total transaction value of $92,616.
The sale was conducted under a prearranged 10b5-1 trading plan, a tool that allows company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information. This plan provides flexibility for executives and complies with insider trading regulations.
Investors might note that the shares were sold in multiple transactions at prices ranging from $9.22 to $9.4138. This price range indicates a weighted average sale price, with the exact number of shares sold at each price available upon request from the SEC, the issuer, or a security holder of the issuer.
Following the transaction, Welgus's ownership in the company stands at 181,944 shares of common stock, which are held directly. This latest stock sale by a key insider may be of interest to current and potential investors as they assess the company's stock performance and insider confidence.
Arcutis Biotherapeutics, based in Westlake Village, California, operates in the pharmaceutical industry, focusing on the development of treatments for dermatological diseases. The company's stock trades on the NASDAQ under the ticker symbol ARQT.
In other recent news, Arcutis Biotherapeutics has reported substantial financial growth, with net revenues reaching $30.9 million in the second quarter of 2024. Analysts from Mizuho Securities, TD Cowen, and Jefferies have maintained a positive outlook on Arcutis due to this strong performance. Specifically, Mizuho reiterated its Outperform rating, with a steady price target of $19.00, attributing this to the increased third-quarter 2024 revenue estimate for Arcutis' products, Zoryve Cream and Zoryve Foam.
The U.S. Food and Drug Administration has accepted a Supplemental New Drug Application for ZORYVE foam, a treatment for scalp and body psoriasis, with a target action date set for May 2025. Clinical trials have shown that ZORYVE foam significantly improved signs and symptoms of psoriasis.
Furthermore, the company has published results from two Phase 3 studies evaluating the efficacy and safety of ZORYVE cream in treating mild to moderate atopic dermatitis. These studies showed that approximately 31% of participants achieved the primary efficacy endpoint of Investigator Global Assessment Success at Week 4.
In addition, Arcutis Biotherapeutics is initiating the launch of the cream for atopic dermatitis while filing a supplemental New Drug Application for the foam to be used on scalp and body psoriasis. These are the recent developments for Arcutis Biotherapeutics.
InvestingPro Insights
To provide additional context to the recent insider sale by Arcutis Biotherapeutics' director Howard G. Welgus, it's worth considering some key financial metrics and analyst perspectives on the company.
According to InvestingPro data, Arcutis Biotherapeutics has a market capitalization of $1.19 billion as of the latest available information. The company's revenue for the last twelve months as of Q2 2024 stood at $132.06 million, with an impressive revenue growth of 1032.9% over the same period. This substantial growth aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Despite the strong revenue growth, it's important to note that Arcutis is not currently profitable. The company reported an operating income of -$179.77 million for the last twelve months as of Q2 2024. This is reflected in an InvestingPro Tip stating that analysts do not anticipate the company will be profitable this year.
However, Arcutis does show financial strength in certain areas. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide financial flexibility as it continues to develop its dermatological treatments. Additionally, the company boasts impressive gross profit margins, with a gross profit margin of 92.32% for the last twelve months as of Q2 2024.
The stock has shown significant volatility, with a notable return of 123.85% over the past year. This performance may be of interest to investors considering the recent insider sale.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Arcutis Biotherapeutics, providing a deeper understanding of the company's financial health and market position.
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