Verrica Pharmaceuticals (NASDAQ:VRCA) Cut to “Hold” at Zacks Research

Zacks Research downgraded shares of Verrica Pharmaceuticals (NASDAQ:VRCA) from a strong-buy rating to a hold rating in a research note released on Monday morning,Zacks.com reports.

VRCA has been the subject of a number of other research reports. Brookline Capital Acquisition upgraded shares of Verrica Pharmaceuticals from a “hold” rating to a “buy” rating and set a $17.00 price target on the stock in a research note on Thursday, December 18th. Loop Capital set a $17.00 price objective on shares of Verrica Pharmaceuticals in a research note on Thursday, December 18th. Wall Street Zen cut Verrica Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Saturday, February 7th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Verrica Pharmaceuticals in a research report on Wednesday, January 7th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $17.00.

Verrica Pharmaceuticals Stock Up 4.7%

NASDAQ VRCA opened at $6.26 on Monday. The firm’s 50 day moving average is $6.75 and its 200-day moving average is $5.87. The company has a market capitalization of $100.10 million, a PE ratio of -1.84 and a beta of 1.47. Verrica Pharmaceuticals has a 12-month low of $3.28 and a 12-month high of $9.82.

Institutional Trading of Verrica Pharmaceuticals

A number of large investors have recently added to or reduced their stakes in VRCA. AQR Capital Management LLC increased its stake in shares of Verrica Pharmaceuticals by 306.7% during the 1st quarter. AQR Capital Management LLC now owns 58,711 shares of the company’s stock worth $26,000 after purchasing an additional 44,275 shares during the last quarter. Qube Research & Technologies Ltd acquired a new stake in Verrica Pharmaceuticals in the 2nd quarter valued at about $28,000. Invesco Ltd. lifted its stake in Verrica Pharmaceuticals by 64.8% in the 1st quarter. Invesco Ltd. now owns 74,388 shares of the company’s stock valued at $33,000 after purchasing an additional 29,256 shares during the last quarter. Bridgeway Capital Management LLC bought a new position in Verrica Pharmaceuticals during the third quarter worth about $52,000. Finally, Goldman Sachs Group Inc. grew its holdings in Verrica Pharmaceuticals by 23.3% during the first quarter. Goldman Sachs Group Inc. now owns 139,055 shares of the company’s stock worth $61,000 after purchasing an additional 26,308 shares during the period. Institutional investors and hedge funds own 42.45% of the company’s stock.

Verrica Pharmaceuticals News Summary

Here are the key news stories impacting Verrica Pharmaceuticals this week:

• Positive Sentiment: Record 2025 revenue and commercial momentum: Verrica reported $35.6M in total revenue for 2025 (up from $7.6M in 2024), YCANTH net revenue +130% to $15.3M, and YCANTH applicator units dispensed +99% to 51,296 — signs of accelerating product adoption. Read More.
• Positive Sentiment: Pipeline and regulatory progress that could drive future upside: first patient dosed in the Phase 3 YCANTH study for common warts (Dec 2025), plan to start the second Phase 3 in the US and Japan with Torii mid‑2026, VP‑315 being advanced toward a Phase 3 program for basal cell carcinoma in 2026, and EMA alignment enabling an EU filing without additional clinical studies. Read More.
• Positive Sentiment: Stronger cost discipline and balance sheet: SG&A declined >40% year‑over‑year, the company reports no outstanding debt and says cash runway extends into Q1 2027 — reduces near‑term financing risk. Read More.
• Neutral Sentiment: Investor engagement and disclosure: company held a conference call and the earnings call transcript and highlights are available for color on commercial traction and R&D plans. These provide more detail but no new financial guidance. Read More. Read More.
• Negative Sentiment: Quarterly EPS miss: GAAP EPS of ($0.51) missed consensus of ($0.43), which may pressure sentiment despite the revenue beat. Read More.
• Negative Sentiment: Analyst view softened: Zacks downgraded VRCA from “strong‑buy” to “hold”, which can temper buying momentum from retail/quant strategies. Read More.

About Verrica Pharmaceuticals

Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica’s approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.

Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.