Verrica Pharmaceuticals Inc. (VRCA) shares are trading at higher $10.06 and the avg recommendation for the stock is Moderate Buy.
To add more color to this target, the company’s high over the last year is $18.67 and the low is $6.02. Over the last 52 weeks, VRCA is down -46.12% while the S&P 500 is down -0.42%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, VRCA reported a profit of $0.9 million. Verrica Pharmaceuticals Inc. also saw revenues increase to $8.63 million. In addition, VRCA has free cash flow of -$17.32 million as of 06-2020. The company’s EBITDA came in at -$8.57 million which compares well with its peers.
VRCA Return on Equity (ROE) is -54.50%, and its Return on Assets is -40.40%. All told, it is clear that, VRCA needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. VRCA has a short ratio of 10.14 and outstanding shares of 24.97M.
VRCA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.34 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.32. Verrica Pharmaceuticals Inc. VRCA also noted assets of $87.24 million at the end of the last quarter. Investors should also keep an eye on sector updates as VRCA has historically followed its peers on positive news.
All told, Verrica Pharmaceuticals Inc. VRCA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, VRCA represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Verrica Pharmaceuticals Inc. VRCA is now commanding a market cap of 248.68M and a float of 9.85M. VRCA is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of VRCA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in VRCA, either long or short, and we have not been compensated for this article.