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VRCA:NASDAQVerrica Pharmaceuticals Inc. Analysis

Data as of 2026-05-09 - not real-time

$7.99

Latest Price

8/10Risk

Risk Level: High

Executive Summary

VRCA is trading around $8 with a 20‑day SMA of $6.66 and a 50‑day SMA of $5.94, keeping the price well above both averages and generating a bullish MACD crossover (MACD line > signal line). The RSI sits at 68, indicating strong upward momentum but approaching overbought territory. Volume is increasing and the stock shows a bullish trend direction, while volatility is exceptionally high at roughly 93% over the past 30 days and beta exceeds 2, underscoring pronounced price swings.
Recent material news highlights the acceptance of a late‑breaking abstract for Phase 2 data on VP‑315, an oncolytic peptide targeting basal cell carcinoma, with results to be presented at the upcoming Society for Investigative Dermatology meeting, providing a potential catalyst for valuation uplift.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • Bullish technical setup (price above SMA20/50, positive MACD)
  • Upcoming Phase 2 data release could spark short‑term price rally
  • Increasing volume supports momentum

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Strong growth narrative from VP‑315 pipeline
  • Analyst price targets imply >90% upside
  • Revenue growth of ~14% despite current losses

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Potential commercialization of VP‑315 and YCANTH expands addressable market
  • Robust cash position relative to modest debt reduces financing risk
  • Long‑term upside tied to successful oncology indications

Key Metrics & Analysis

Financial Health

Revenue Growth1380.20%
Profit Margin-50.27%
P/E Ratio-4.7
ROE-240.36%
ROA-14.74%
Debt/Equity6.59
P/B Ratio5.5
Op. Cash Flow$-17627000
Free Cash Flow$-15459625
Industry P/E26.4

Technical Analysis

TrendBullish
RSI67.7
Support$5.11
Resistance$8.50
MA 20$6.66
MA 50$5.94
MA 200$5.90
MACDBullish
VolumeIncreasing
Fear & Greed Index90.73

Valuation

Target Price$16.50
Upside/Downside106.51%
GradeUndervalued
TypeGrowth

Risk Assessment

Beta2.42
Volatility92.87%
Sector RiskHigh
Reg. RiskHigh
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.