Verrica Pharmaceuticals Inc (VRCA) Stock: Navigating the Market Volatility

The stock of Verrica Pharmaceuticals Inc (VRCA) has seen a 5.42% increase in the past week, with a -39.73% drop in the past month, and a -67.73% decrease in the past quarter. The volatility ratio for the week is 10.93%, and the volatility levels for the past 30 days are at 12.16% for VRCA. The simple moving average for the last 20 days is -16.46% for VRCA stock, with a simple moving average of -81.84% for the last 200 days.

Is It Worth Investing in Verrica Pharmaceuticals Inc (NASDAQ: VRCA) Right Now?

Company’s 36-month beta value is 1.38.Analysts have differing opinions on the stock, with 2 analysts rating it as a “buy,” 2 as “overweight,” 4 as “hold,” and 0 as “sell.”

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The public float for VRCA is 27.21M, and currently, short sellers hold a 16.07% ratio of that floaft. The average trading volume of VRCA on November 21, 2024 was 935.72K shares.

VRCA) stock’s latest price update

The stock of Verrica Pharmaceuticals Inc (NASDAQ: VRCA) has increased by 2.56 when compared to last closing price of 0.89. Despite this, the company has experienced a 5.42% gain in its stock price over the last five trading sessions. globenewswire.com reported 2024-11-21 that WEST CHESTER, Pa., Nov. 21, 2024 (GLOBE NEWSWIRE) — Verrica Pharmaceuticals Inc. (“Verrica” or the “Company”) (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced the pricing of an underwritten public offering of 44,964,045 shares of its common stock and, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase 2,235,955 shares of its common stock, and in either case, accompanying Series A warrants to purchase 23,600,000 shares of its common stock at an exercise price of $1.0680 per share of common stock and Series B warrants to purchase 23,600,000 shares of its common stock at an exercise price of $1.3350 per share of common stock, at a combined public offering price of $0.89 per share of common stock and accompanying Series A and Series B warrants (or $0.8899 per pre-funded warrant and accompanying Series A and Series B warrants). All of the securities being sold in the offering are being sold by Verrica. The offering is expected to close on November 22, 2024, subject to the satisfaction of customary closing conditions. Verrica also granted the underwriter an option for a period of 30 days to purchase up to 7,080,000 additional shares of the Company’s common stock and/or Series A warrants to purchase up to 3,540,000 additional shares of its common stock and Series B warrants to purchase up to 3,540,000 additional shares of its common stock at the public offering price, less the underwriting discounts and commissions.

Analysts’ Opinion of VRCA

Needham gave a rating of “Buy” to VRCA, setting the target price at $10 in the report published on July 25th of the previous year.

VRCA Trading at -33.40% from the 50-Day Moving Average

After a stumble in the market that brought VRCA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -92.02% of loss for the given period.

Volatility was left at 12.16%, however, over the last 30 days, the volatility rate increased by 10.93%, as shares sank -36.02% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -50.53% lower at present.

During the last 5 trading sessions, VRCA rose by +11.17%, which changed the moving average for the period of 200-days by -81.44% in comparison to the 20-day moving average, which settled at $1.0920. In addition, Verrica Pharmaceuticals Inc saw -87.57% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at VRCA starting from Hayes Christopher G., who sale 26,183 shares at the price of $2.66 back on Aug 26 ’24. After this action, Hayes Christopher G. now owns 115,303 shares of Verrica Pharmaceuticals Inc, valued at $69,647 using the latest closing price.

Hayes Christopher G., the CHIEF LEGAL OFFICER of Verrica Pharmaceuticals Inc, sale 9,530 shares at $2.46 during a trade that took place back on Aug 27 ’24, which means that Hayes Christopher G. is holding 105,773 shares at $23,444 based on the most recent closing price.

Stock Fundamentals for VRCA

Current profitability levels for the company are sitting at:

  • -8.16 for the present operating margin
  • 0.73 for the gross margin

The net margin for Verrica Pharmaceuticals Inc stands at -9.23. The total capital return value is set at -6.31. Equity return is now at value -2059.89, with -130.68 for asset returns.

Based on Verrica Pharmaceuticals Inc (VRCA), the company’s capital structure generated 4.27 points at debt to capital in total, while cash flow to debt ratio is standing at -1.34. The debt to equity ratio resting at -1.31. The interest coverage ratio of the stock is -8.02.

Currently, EBITDA for the company is -62.2 million with net debt to EBITDA at -0.32. When we switch over and look at the enterprise to sales, we see a ratio of 7.2. The receivables turnover for the company is 109.64for trailing twelve months and the total asset turnover is 0.28. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.34.

Conclusion

In a nutshell, Verrica Pharmaceuticals Inc (VRCA) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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