Peeling Back The Layers: Exploring Arcutis Biotherapeutics Through Analyst Insights

During the last three months, 4 analysts shared their evaluations of Arcutis Biotherapeutics ARQT, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Arcutis Biotherapeutics, revealing an average target of $18.0, a high estimate of $18.00, and a low estimate of $18.00. Observing a 4.35% increase, the current average has risen from the previous average price target of $17.25.

Investigating Analyst Ratings: An Elaborate Study

The perception of Arcutis Biotherapeutics by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arcutis Biotherapeutics. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Arcutis Biotherapeutics compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Arcutis Biotherapeutics's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Arcutis Biotherapeutics's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Discovering Arcutis Biotherapeutics: A Closer Look

Arcutis Biotherapeutics Inc is a medical dermatology company. It is developing treatments for patients with immune-mediated dermatological diseases and conditions. It is leveraging recent advances in immunology and inflammation to develop differentiated therapies against biologically validated targets to solve persistent treatment challenges in serious diseases of the skin. The company's lead product candidate ZORYVE roflumilast cream, has successfully completed pivotal Phase 3 clinical trials in plaque psoriasis, demonstrating symptomatic improvement and favorable tolerability in this population.

Understanding the Numbers: Arcutis Biotherapeutics's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Arcutis Biotherapeutics's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 1682.42%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Arcutis Biotherapeutics's net margin is impressive, surpassing industry averages. With a net margin of -71.38%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Arcutis Biotherapeutics's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -22.56%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Arcutis Biotherapeutics's ROA excels beyond industry benchmarks, reaching -8.63%. This signifies efficient management of assets and strong financial health.

Debt Management: Arcutis Biotherapeutics's debt-to-equity ratio stands notably higher than the industry average, reaching 0.92. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.