Tarsus Pharmaceuticals (NASDAQ:TARS) Shares Gap Up – Still a Buy?

Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $69.59, but opened at $74.55. Tarsus Pharmaceuticals shares last traded at $77.3650, with a volume of 390,998 shares traded.

Tarsus Pharmaceuticals News Roundup

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

• Positive Sentiment: Oppenheimer raised its price target to $105 and kept an “outperform” rating, signaling strong analyst conviction and supporting upside expectations. Oppenheimer Price Target Raise
• Positive Sentiment: Guggenheim lifted its price target to $90 with a “buy” rating, adding another institutional vote of confidence that helps justify higher valuations. Guggenheim $90 PT
• Positive Sentiment: Company results and commentary continue to highlight XDEMVY’s blockbuster potential — management is targeting $2B+ peak sales, and 2026 guidance of $670M–$700M with high gross margins supports a long-term growth story. These fundamentals underpin optimism in revenue trajectory and international expansion. XDEMVY Blockbuster Potential
• Neutral Sentiment: Coverage pieces and earnings write-ups (Q4 insights) provide context on growth and margin improvements but do not change fundamentals immediately; useful for investors assessing whether recent upside is sustainable. Q4 Earnings Insights
• Negative Sentiment: HC Wainwright issued a broad set of cuts to near-term EPS forecasts—reducing Q1–Q3 2026 and trimming FY2026 estimates (e.g., Q1 2026 to ($0.42) from $0.05; FY2026 to ($0.56) from $0.59) and lowering FY2027–FY2029 targets. These downgrades increase short-term earnings uncertainty and could weigh on sentiment despite long-term upside. HC Wainwright Estimate Changes

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on TARS shares. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $68.00 target price on shares of Tarsus Pharmaceuticals in a research report on Thursday, February 5th. Zacks Research upgraded shares of Tarsus Pharmaceuticals from a “hold” rating to a “strong-buy” rating in a report on Friday, January 23rd. Mizuho started coverage on shares of Tarsus Pharmaceuticals in a research report on Thursday, November 20th. They set an “outperform” rating and a $100.00 target price on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a report on Thursday, January 22nd. Finally, Guggenheim lifted their target price on Tarsus Pharmaceuticals from $87.00 to $90.00 and gave the stock a “buy” rating in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Tarsus Pharmaceuticals has an average rating of “Moderate Buy” and an average target price of $87.00.

Tarsus Pharmaceuticals Price Performance

The stock has a market capitalization of $3.20 billion, a PE ratio of -46.39, a P/E/G ratio of 1.08 and a beta of 0.57. The company has a debt-to-equity ratio of 0.21, a current ratio of 3.85 and a quick ratio of 4.25. The stock’s fifty day moving average is $72.15 and its 200-day moving average is $68.38.

Tarsus Pharmaceuticals (NASDAQ:TARS) last issued its quarterly earnings data on Monday, February 23rd. The company reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.01). Tarsus Pharmaceuticals had a negative return on equity of 19.63% and a negative net margin of 14.72%.The firm had revenue of $151.67 million during the quarter, compared to analyst estimates of $144.56 million. As a group, equities analysts predict that Tarsus Pharmaceuticals, Inc. will post -3.17 earnings per share for the current fiscal year.

Insider Transactions at Tarsus Pharmaceuticals

In other Tarsus Pharmaceuticals news, insider Dianne C. Whitfield sold 7,397 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $80.10, for a total transaction of $592,499.70. Following the completion of the sale, the insider directly owned 38,958 shares in the company, valued at approximately $3,120,535.80. The trade was a 15.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Bobak R. Azamian sold 6,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 24th. The stock was sold at an average price of $82.51, for a total value of $495,060.00. Following the sale, the chief executive officer owned 857,991 shares of the company’s stock, valued at $70,792,837.41. The trade was a 0.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 8.97% of the company’s stock.

Institutional Investors Weigh In On Tarsus Pharmaceuticals

A number of hedge funds have recently modified their holdings of the company. RTW Investments LP lifted its position in Tarsus Pharmaceuticals by 5.0% in the fourth quarter. RTW Investments LP now owns 3,335,320 shares of the company’s stock valued at $273,096,000 after buying an additional 157,884 shares during the last quarter. Deep Track Capital LP grew its stake in shares of Tarsus Pharmaceuticals by 71.4% during the third quarter. Deep Track Capital LP now owns 3,000,000 shares of the company’s stock worth $178,290,000 after purchasing an additional 1,250,000 shares in the last quarter. Jennison Associates LLC raised its stake in Tarsus Pharmaceuticals by 5.5% in the third quarter. Jennison Associates LLC now owns 2,604,580 shares of the company’s stock valued at $154,790,000 after buying an additional 136,582 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Tarsus Pharmaceuticals by 5.6% during the 4th quarter. Vanguard Group Inc. now owns 2,399,560 shares of the company’s stock worth $196,476,000 after buying an additional 127,470 shares during the last quarter. Finally, Morgan Stanley increased its position in shares of Tarsus Pharmaceuticals by 6.7% during the fourth quarter. Morgan Stanley now owns 2,040,742 shares of the company’s stock worth $167,096,000 after purchasing an additional 128,340 shares in the last quarter. Hedge funds and other institutional investors own 90.01% of the company’s stock.

About Tarsus Pharmaceuticals

Tarsus Pharmaceuticals, Inc is a clinical‐stage biopharmaceutical company focused on developing novel therapies for diseases of the eye and ocular surface. The company’s research platform centers on neuro‐effector modulation to address underlying disease mechanisms rather than solely treating symptoms. Tarsus’s lead candidate, OC-01 (varenicline solution), is an intranasal formulation in Phase 3 development for the treatment of dry eye disease, a condition affecting millions worldwide and associated with significant patient discomfort and reduced quality of life.

In addition to its dry eye program, Tarsus is advancing preclinical and early‐stage programs targeting other ophthalmic indications, including allergic conjunctivitis and retinal disorders.