Shares of Verrica Pharmaceuticals (NASDAQ:VRCA) gained over 1% on Wednesday after a top insider, Perceptive Advisors LLC, disclosed the purchase of VRCA stock worth $6.94 million. It must be mentioned that Perceptive Advisors is the owner of more than 10% of Verrica’s shares. VRCA is a clinical-stage medical dermatology company that engages in the development of treatment for skin diseases.
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As per the SEC filing, Perceptive Advisors bought 1.23 million shares of the company in multiple transactions between December 15 and December 19. Investors should note that the move signals the private investment management firm’s confidence in VRCA’s future performance.
Based on the data collected by TipRanks, the firm has witnessed an 83% success rate in the past year. Further, it has been able to generate an average return of 122.1% per transaction.
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Recent Development
Last month, Verrica reported revenues of $2.8 million for the third quarter, which came much above the consensus estimates. Earnings, however, lagged behind the analysts’ expectations. Following the Q3 results, three analysts, including Stacy Ku of TD Cowen, maintained a Buy rating on Verrica.
Is VRCA a Good Stock to Buy?
Currently, Wall Street is highly optimistic about VRCA stock. It has a Strong Buy consensus rating based on four unanimous Buy recommendations. The average stock price target of $12.25 implies 117.6% upside potential. Shares have gained 104.7% so far in 2023.
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