Royce & Associates Invests $4.19 Million in Arcutis Biotherapeutics

Royce & Associates LP has taken a significant step by investing approximately $4.19 million in Arcutis Biotherapeutics, Inc. (NASDAQ: ARQT) during the first quarter of 2023. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission (SEC), Royce acquired 267,612 shares of Arcutis, representing about 0.22% of the company’s total stock.

This investment comes amid a broader trend of institutional interest in Arcutis. Other investors have recently adjusted their positions as well. For instance, GF Fund Management CO. LTD. initiated a new position valued at $34,000 in the fourth quarter. Similarly, Amalgamated Bank increased its holdings by 39.4% during the first quarter, now owning 3,723 shares valued at $58,000. KBC Group NV also joined the ranks of new investors, purchasing shares worth $84,000.

Summit Investment Advisors Inc. and CWM LLC have also expanded their stakes in Arcutis, increasing holdings by 8.0% and 88.9%, respectively. CWM LLC now possesses 11,331 shares valued at $177,000 after acquiring an additional 5,333 shares.

Stock Performance and Insider Activity

Arcutis Biotherapeutics opened trading at $14.86 on the most recent Monday, with a market capitalization of $1.77 billion. The company has experienced a twelve-month low of $7.86 and a high of $17.75. Key financial metrics indicate a price-to-earnings (PE) ratio of -14.29, a current ratio of 3.55, and a debt-to-equity ratio of 0.75.

In relation to insider transactions, Patrick Burnett, an insider, sold 5,750 shares on July 14, 2023, at an average price of $15.07, totaling $86,652.50. Following this transaction, Burnett holds 115,468 shares valued at approximately $1.74 million, reflecting a 4.74% decrease in ownership.

Conversely, Director Patrick J. Heron purchased 2,646 shares on June 13, 2023, for an average price of $13.08, amounting to $34,609.68. After this acquisition, Heron’s total ownership rose to 27,448 shares, valued at around $359,019.84. In total, insiders have transacted 7,434 shares worth $99,277 in purchases against 57,041 shares sold, equating to $827,063 during the last ninety days.

Analysts’ Outlook on Arcutis Biotherapeutics

Wall Street analysts are optimistic about Arcutis Biotherapeutics, with several issuing positive ratings. Guggenheim reaffirmed a “buy” rating on April 3, 2023. Needham & Company LLC followed suit, maintaining a “buy” rating and setting a target price of $20.00. HC Wainwright also reiterated a “buy” rating with a target price of $19.00.

The Goldman Sachs Group has recently initiated coverage with a “neutral” rating and a target price of $18.00. Currently, one analyst has rated the stock as a hold, while five others have given it a buy rating. According to data from MarketBeat.com, Arcutis Biotherapeutics holds an average rating of “Moderate Buy” with a consensus price target of $19.40.

Arcutis Biotherapeutics operates in the biopharmaceutical sector, focusing on developing and commercializing treatments for dermatological diseases. Its lead product candidate, ARQ-151, is a topical roflumilast cream that has successfully completed Phase III clinical trials aimed at treating plaque psoriasis and atopic dermatitis.

The latest activities regarding Arcutis underscore a growing confidence in the company’s potential within the biopharmaceutical landscape, as institutional investments and positive analyst forecasts align with its innovative product pipeline.