Last Updated: 13 Nov 2024
Executive Summary
Verrica Pharmaceuticals Inc. (VRCA) is a dermatological therapy company with a market capitalization of $43.86 million. The company has been experiencing revenue growth but is still operating at a loss. Analysts have a strong buy rating on the stock, with a target price of $9.25.
Company Overview
Verrica Pharmaceuticals Inc. develops and markets treatments for people with skin conditions. The company is headquartered in West Chester, Pennsylvania. Verrica's lead product is VP-102, a topical treatment for molluscum contagiosum. The company also has a pipeline of other products in development, including treatments for atopic dermatitis, acne, and warts.
Fundamental Analysis
Verrica Pharmaceuticals Inc. has been growing its revenue, but is still operating at a loss. In the most recent quarter, the company reported revenue of $9.21 million, up 27.45% year-over-year. The company's gross profit was $8.31 million, and its net loss was $10.2 million. Verrica's operating margin was 11.62%.
The company's balance sheet is weak. Verrica has $16.9 million in cash and equivalents, and $117.1 million in debt. The company's book value is -$34.3 million.
Technical Analysis
Verrica Pharmaceuticals Inc. stock is currently trading at $0.92, below its 50-day moving average of $1.578 and its 200-day moving average of $5.22. The stock's relative strength index (RSI) is 30.96, indicating that it is oversold.
Short Term Outlook
Verrica Pharmaceuticals Inc. stock is likely to remain volatile in the short term. The company's fundamentals are weak, and the stock is trading below its moving averages. However, the stock's RSI is oversold, which could indicate that it is due for a rebound.
Long Term Outlook
Verrica Pharmaceuticals Inc. has a strong pipeline of products in development. If the company can successfully commercialize these products, it could generate significant revenue and profits. However, the company's balance sheet is weak, and it may need to raise additional capital in the future.
Analyst Recommendations
Analysts have a strong buy rating on Verrica Pharmaceuticals Inc. stock. The average analyst target price is $9.25.
