Journey Medical (NASDAQ:DERM) Rating Lowered to Strong Sell at Zacks Research

Journey Medical (NASDAQ:DERM) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Thursday, Zacks reports.

A number of other research firms have also weighed in on DERM. Wall Street Zen lowered Journey Medical from a “buy” rating to a “hold” rating in a research note on Saturday, October 17th. B. Riley Financial restated a “buy” rating and set a $13.00 target price (down from $15.00) on shares of Journey Medical in a report on Friday. Weiss Ratings restated a “sell (d-)” rating on shares of Journey Medical in a research report on Thursday, October 15th. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $13.00 price target on shares of Journey Medical in a research note on Monday, October 26th. Two research analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Journey Medical has a consensus rating of “Hold” and a consensus target price of $13.00.

Journey Medical Trading Down 1.4%

Journey Medical stock traded down $0.06 during mid-day trading on Thursday, hitting $4.33. The company’s stock had a trading volume of 387,161 shares, compared to its average volume of 185,290. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.59 and a quick ratio of 1.41. The stock has a market cap of $122.19 million, a price-to-earnings ratio of -24.05 and a beta of 1.14. The business has a 50 day moving average price of $5.89 and a 200-day moving average price of $6.47. Journey Medical has a 12 month low of $4.00 and a 12 month high of $9.56.

Journey Medical (NASDAQ:DERM) last posted its quarterly earnings results on Thursday, November 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.03). Journey Medical had a negative net margin of 7.34% and a negative return on equity of 16.15%. The business had revenue of $18.97 million for the quarter, compared to analysts’ expectations of $20.32 million. As a group, analysts forecast that Journey Medical will post -0.13 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of DERM. Wasatch Advisors LP lifted its holdings in Journey Medical by 34.0% in the 2nd quarter. Wasatch Advisors LP now owns 2,858,930 shares of the company’s stock worth $20,241,000 after buying an additional 725,560 shares during the period. Punch & Associates Investment Management Inc. bought a new stake in shares of Journey Medical in the 2nd quarter worth approximately $3,795,000. Pale Fire Capital SE raised its holdings in shares of Journey Medical by 9.7% during the second quarter. Pale Fire Capital SE now owns 528,584 shares of the company’s stock valued at $3,742,000 after acquiring an additional 46,597 shares in the last quarter. First Eagle Investment Management LLC bought a new position in shares of Journey Medical during the third quarter valued at approximately $3,305,000. Finally, Marshall Wace LLP lifted its stake in Journey Medical by 38.9% in the third quarter. Marshall Wace LLP now owns 194,311 shares of the company’s stock worth $1,329,000 after acquiring an additional 54,468 shares during the period. Institutional investors own 7.25% of the company’s stock.

Key Headlines Impacting Journey Medical

Investors following DERM have been watching these headlines:

• Positive Sentiment: Journey Medical’s third-quarter loss narrowed and revenue increased, and a report said shares gained in after-hours trading following the results. Article
• Neutral Sentiment: B. Riley reaffirmed its “Buy” rating but cut its price target to $13 from $15. The lower target is a cautionary change, though it remains well above the $4.48 reference price cited in the report. Article
• Negative Sentiment: Quarterly adjusted loss was $0.05 per share, worse than the $0.02 loss analysts expected. Revenue of $18.97 million also missed the $20.32 million consensus, which could weigh on sentiment despite the year-over-year improvement. Earnings report

Journey Medical Company Profile

Journey Medical Corporation is a commercial-stage pharmaceutical company focused on developing and marketing prescription treatments for dermatological conditions. Founded in 2014 and based in Scottsdale, Arizona, the company primarily serves the U.S. market. Its portfolio includes treatments for conditions such as acne, rosacea, excessive underarm sweating and fungal skin infections. Products include Amzeeq and Zilxi, topical minocycline therapies; Qbrexza, a topical treatment for primary axillary hyperhidrosis; and the oral rosacea treatment Emrosi.