Verrica Pharmaceuticals Inc. Sees Major Decline in Short Interest

Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) experienced a significant decline in its short interest during December. As reported on December 15th, the total short interest dropped to 2,000,000 shares, which represents a decrease of 34.2% from the 3,040,000 shares reported on November 30th. Given an average trading volume of 891,600 shares, this results in a days-to-cover ratio of approximately 2.2 days.

Recent Analyst Recommendations

In recent weeks, several analysts have shared their insights regarding Verrica Pharmaceuticals. TD Cowen announced a reduction in their price target from $15.00 to $10.00, while maintaining a "buy" rating for the stock on October 21st. In a report dated October 2nd, Brookline Capital Management reiterated a "hold" rating. HC Wainwright adjusted their stance from a "buy" to a "neutral" rating on November 6th. Meanwhile, Royal Bank of Canada downgraded the company from an "outperform" to a "sector perform" rating, reducing their price target from $11.00 to $2.00 on November 5th. Finally, Needham & Company LLC reaffirmed a "hold" rating on December 20th. Overall, four analysts have labeled the stock as a hold, and one analyst has issued a buy rating, leading to an average rating of "Hold" with a target price of $9.50 according to MarketBeat.com.

Institutional Investments

Several institutional investors have either increased or decreased their holdings in VRCA recently. For instance, Simplify Asset Management Inc. purchased a new stake worth approximately $2,041,000 in the second quarter. XTX Topco Ltd and Verition Fund Management LLC also marked new positions in the third quarter, valued at about $335,000 and $89,000, respectively. Additionally, State Street Corp grew its stake by 13.5% during the same quarter, now holding 512,821 shares valued at $744,000 after acquiring an extra 61,041 shares. Sanctuary Advisors LLC added a new position valued at approximately $87,000 during the third quarter. Currently, 42.45% of Verrica Pharmaceuticals' stock is held by institutional investors and hedge funds.

Recent Stock Performance

On Monday, Verrica Pharmaceuticals' stock opened at $0.70. Throughout the past year, the stock has seen a low of $0.61 and a high of $11.41. With a market capitalization of $31.92 million, the company has a P/E ratio of -0.38 and a beta of 1.40. The debt-to-equity ratio stands at 29.58, with a quick ratio of 1.22 and a current ratio of 1.34. The fifty-day moving average for the stock is $1.03, while the two-hundred day average is $3.24.

The company’s last quarterly earnings were reported on November 4th, where it posted an earnings per share of ($0.49), which fell short of the expected ($0.37) by $0.12. Verrica Pharmaceuticals recorded a negative net margin of 625.06% and a negative return on equity of 591.84%. Total revenue for the quarter amounted to ($1.78) million, significantly lower than the anticipated $7.53 million. Analysts predict that the company will report earnings per share of -1.42 for the current fiscal year.

Company Overview

Verrica Pharmaceuticals Inc. is a clinical-stage company focused on developing dermatological treatments for skin diseases in the United States. Its product pipeline includes YCANTH (VP-102), which is undergoing phase III clinical trials for the treatment of common warts and has completed phase II trials for treating external genital warts.

Verrica, Pharmaceuticals, Short