Exploring Tarsus Pharmaceuticals, Inc. (TARS) Investor Profile: Who’s Buying and Why?

You're looking at Tarsus Pharmaceuticals, Inc. (TARS) and wondering who's driving that kind of momentum, especially after a year that saw the stock deliver a 66.19% return. Honestly, the investor profile tells a story of conviction in a commercial-stage biotech: a significant 36.07% of the company is held by Institutional Investors, including heavy hitters like BlackRock, Inc. and Vanguard Group Inc., but it's the 60.69% ownership by Public Companies and Individual Investors that keeps the stock interesting, signaling strong retail and strategic belief. They're all betting on the continued success of XDEMVY, the first and only FDA-approved treatment for Demodex blepharitis, which powered the company to a trailing twelve-month revenue of approximately $366.10 million as of Q3 2025, with Q3 revenue alone hitting $118.70 million. How do you weigh that rapid revenue growth against the current $3.25 billion market capitalization and the consensus analyst price target of $95? Let's dig into the specific capital flows and strategic positions that explain why this stock is defintely on the move.

Who Invests in Tarsus Pharmaceuticals, Inc. (TARS) and Why?

You're looking at Tarsus Pharmaceuticals, Inc. (TARS) and trying to figure out who is driving the stock and for what reason. The direct takeaway is that Tarsus is overwhelmingly an institutional growth story, fueled by the commercial success of its flagship product, XDEMVY, and its deep, lotilaner-based pipeline.

The investor base is a mix of specialized biotech funds and large asset managers, all betting on the company's transition from a clinical-stage entity to a commercial powerhouse. This isn't a stock for income investors; the focus is purely on top-line expansion and market penetration.

Key Investor Types: The Institutional Dominance

The ownership structure of Tarsus Pharmaceuticals, Inc. is heavily weighted toward institutional investors, which is typical for a commercial-stage biotech company with a high-growth trajectory. As of late 2025, institutional and hedge fund investors collectively own roughly 90.01% of the company's stock.

This massive stake means the stock's price movement is defintely driven by the decisions of large funds, not retail traders. The more granular breakdown shows that Institutions hold about 75.5%, while Hedge Funds account for a significant 11.7%. Over 441 institutional owners have filed with the SEC, indicating broad professional interest. Here's a quick look at the major players as of the third quarter of 2025:

• BlackRock, Inc.: A major passive and active fund manager.
• The Vanguard Group, Inc.: Known for its index and mutual fund holdings.
• Deep Track Capital, LP: A specialized healthcare-focused hedge fund.
• Rtw Investments, Lp: Another prominent life sciences investment firm.

When you see BlackRock, Inc. and Vanguard Group Inc. on the list, it tells you the stock has been integrated into major index and mutual funds, giving it a baseline of stability. But the presence of specialized firms like Deep Track Capital, LP signals a belief in the specific biotech catalysts.

Investment Motivations: The XDEMVY Growth Engine

The primary attraction for all these investors is the explosive growth and first-mover advantage of XDEMVY (lotilaner ophthalmic solution), the first and only FDA-approved treatment for Demodex blepharitis (DB). It's a category-defining drug, and that's a rare thing in ophthalmology.

The numbers from the 2025 fiscal year are what really grab attention. For the last twelve months ending in Q3 2025, Tarsus Pharmaceuticals, Inc. reported total revenue of $366.10 million, representing an incredible 182.44% year-over-year growth. Here's the quick math on the near-term sales momentum:

Plus, the gross margins are strong, holding steady at approximately 93%, which gives them plenty of room to invest in commercialization. The second main motivation is the pipeline, which leverages the same active ingredient, lotilaner. The most anticipated is TP-04 for ocular rosacea, a condition affecting 15-18 million Americans, which analysts project could be a $1.5 billion market by 2030. You can read more about the company's long-term vision here: Mission Statement, Vision, & Core Values of Tarsus Pharmaceuticals, Inc. (TARS).

Investment Strategies: Growth at Any Price

The dominant strategy among Tarsus Pharmaceuticals, Inc. investors is Growth Investing. This is a company with a negative earnings per share (EPS) of $(0.30) in Q3 2025, but its stock is trading with a forward Price-to-Earnings (P/E) ratio of 79.01. That's a clear sign the market is pricing in massive future growth, not current profitability. They are reinvesting every dollar back into the business, which is why the dividend payout ratio is 0.00%.

Hedge funds and active managers are employing a Long-Term Holding strategy, often with a 3- to 5-year horizon, to capture the full commercial potential of XDEMVY and the pipeline catalysts. They are willing to overlook the near-term net losses-like the $(0.48) net loss per share in Q2 2025-because the cash position remains solid at $381.1 million as of June 30, 2025. The strategy is simple: buy now for the market dominance later.

The near-term risk is the high marketing spend-a full-year Direct-to-Consumer (DTC) budget of $70 million to $80 million for 2025. What this estimate hides is the execution risk; they have to keep converting that spend into new prescriptions to justify the valuation. Your immediate action should be to track the next quarter's net sales and the enrollment progress of the TP-04 Phase 2 trial. Finance: Draft a sensitivity analysis on the DTC spend efficiency by the end of the month.

Institutional Ownership and Major Shareholders of Tarsus Pharmaceuticals, Inc. (TARS)

If you're looking at Tarsus Pharmaceuticals, Inc. (TARS), the first thing to understand is that it's overwhelmingly an institutionally-owned stock. This means the big players-the mutual funds, hedge funds, and asset managers-are the primary owners, holding approximately 90.01% of the company's shares. This high concentration reflects a strong institutional conviction in the commercial success of their flagship product, XDEMVY, and the pipeline's potential.

This is defintely a stock where you need to track the movements of the largest funds, as their buying and selling can dictate short-term price action. Their research is extensive, so their presence acts as a powerful vote of confidence for the company's fundamentals and its path to profitability.

Top Institutional Investors and Their Q3 2025 Stakes

As of the end of the third quarter of 2025, the institutional landscape for Tarsus Pharmaceuticals, Inc. was dominated by a handful of massive asset managers and specialized biotech funds. These firms collectively hold over 53.3 million shares. Here's a quick look at the top-tier holders, based on their September 30, 2025 13F filings:

Here's the quick math: BlackRock, Inc. and Vanguard Group Inc., often passive index-trackers, are foundational holders, but the active moves from biotech specialists like Deep Track Capital, LP tell a more aggressive story. Deep Track Capital, LP, for instance, dramatically increased its position by 1,250,000 shares in Q3 2025. That's a significant capital allocation. If you want to dive deeper into the financial stability that supports this institutional confidence, I recommend reading Breaking Down Tarsus Pharmaceuticals, Inc. (TARS) Financial Health: Key Insights for Investors.

Recent Shifts: Who's Buying and Selling Now?

The third quarter of 2025 saw a fascinating mix of institutional activity, signaling a re-evaluation of the stock following strong Q3 revenue of $119 million and a full-year revenue guidance of $440-$445 million.

• Aggressive Accumulation: Hedge funds like Millennium Management LLC lifted their holdings by a massive 73.0%, acquiring 42,427 additional shares. Similarly, HighVista Strategies LLC boosted its stake by 112.8%. This shows a clear appetite for growth investors who see the stock, trading around $76.98 per share in November 2025, as having more room to run.
• Strategic Trimming: Not everyone was buying. While BlackRock, Inc. remains a top holder, they slightly reduced their stake by 0.331%, selling 12,564 shares. This is often just portfolio rebalancing, not a negative judgment, but it's a data point to watch, especially when paired with a decrease from Paradigm Biocapital Advisors LP.

The net effect is a high Fund Sentiment Score, which means funds are generally accumulating the stock, indicating a high level of institutional confidence in the company's near-term execution. The smart money is leaning long on Tarsus Pharmaceuticals, Inc.

Impact on Stock Price and Strategy

The high institutional ownership-that 90% figure-gives Tarsus Pharmaceuticals, Inc. a degree of stock price stability that many smaller biotechs lack. Institutions are typically long-term holders; they don't panic-sell on minor news, which reduces volatility.

More importantly, these large investors influence strategy. The company is exploring both organic growth (expanding XDEMVY adoption and advancing the pipeline products like TP-04 for ocular rosacea and TP-05 for Lyme disease) and inorganic growth (M&A) opportunities, backed by a strong capital position of $400 million at the end of Q3 2025. Institutional shareholders, particularly activist ones, will pressure management to deploy that capital efficiently to maximize returns, either through successful commercialization or a strategic acquisition.

For you as an investor, the takeaway is clear: the stock's performance will be tightly linked to Tarsus Pharmaceuticals, Inc. meeting or beating the aggressive growth expectations that these large, sophisticated owners have modeled for XDEMVY's market penetration and the pipeline's progress.

Key Investors and Their Impact on Tarsus Pharmaceuticals, Inc. (TARS)

You're looking at Tarsus Pharmaceuticals, Inc. (TARS) and wondering who's driving the stock's impressive run-the answer is big money, specifically institutional funds. As of late 2025, institutional investors hold a dominant stake, making up around 75.5% of the company's ownership, which means their collective decisions defintely move the stock price. This high concentration means TARS's valuation is largely a reflection of professional financial conviction, not just retail sentiment, which is a key signal for stability in the volatile biotech sector.

The institutional focus is on the commercial success of XDEMVY (lotilaner ophthalmic solution), the first FDA-approved treatment for Demodex blepharitis, and a promising pipeline that includes candidates for ocular rosacea and Lyme disease prevention. This combination of a first-to-market product and future growth potential is what attracts the largest asset managers in the world.

The Heavy Hitters: Who Owns the Largest Stakes?

The ownership roster for Tarsus Pharmaceuticals, Inc. reads like a who's who of global asset management, plus a few specialist biotech venture capital (VC) firms. The largest single shareholder is Vivo Capital IX LLC, a VC/private equity firm, which holds 5.71 million shares, representing a 13.46% stake valued at approximately $414.44 million. This kind of large, concentrated position from a VC firm often signals deep involvement and a long-term belief in the company's core technology and market penetration strategy.

Beyond the VC anchor, the passive and active giants of the investing world are major players. BlackRock, Inc. and The Vanguard Group, Inc. are consistently among the top institutional holders. As of the third quarter of 2025, BlackRock, Inc. held 3,779,621 shares, while The Vanguard Group, Inc. held 2,272,090 shares. Their presence is typical, as they often take large, passive positions through index funds (like the iShares Russell 2000 ETF, which holds TARS shares), but their sheer size gives them significant influence on governance matters.

Here's a snapshot of the top institutional holders and their positions as of September 30, 2025:

Recent Capital Shifts and The Influence of Specialist Funds

The most telling moves come from the specialist biotech hedge funds, which are making calculated bets on the company's trajectory. In the third quarter of 2025, Deep Track Capital, LP made a massive vote of confidence, increasing its stake by 1,250,000 shares, a significant capital injection that reflects optimism following the strong Q3 2025 earnings report. This kind of large, directional buying from a sector-focused fund is a strong indicator that the market believes in the commercial ramp-up of XDEMVY, which helped Tarsus Pharmaceuticals, Inc. achieve $118.7 million in revenue for the quarter.

Conversely, not every investor is fully committed to holding. During the same period, Paradigm Biocapital Advisors LP trimmed its position by 310,401 shares, and Janus Henderson Group Plc reduced its stake by over 20%, selling 367,948 shares. These sales could be profit-taking after the stock's impressive 66.19% return over the past year, or a reallocation of capital as the stock hit an all-time high of $76.85 in November 2025. It's a classic risk-reward calculation after a big win.

• Look for a Schedule 13D filing: This form is the investor's way of saying they intend to influence management or strategy.
• Watch insider selling: CEO Bobak R. Azamian and CFO Jeffrey S. Farrow have sold shares in 2025, which is common for executive compensation but still warrants attention.
• Institutional buying validates the core thesis: The fact that 441 institutions hold Tarsus Pharmaceuticals, Inc. shares shows broad professional acceptance of the company's potential.

The influence of these funds is direct: large purchases create upward pressure, and sales can exacerbate volatility. For a deeper dive into the company's financial footing, which is the ultimate driver of this institutional interest, you should read Breaking Down Tarsus Pharmaceuticals, Inc. (TARS) Financial Health: Key Insights for Investors.

Market Impact and Investor Sentiment

You're looking at Tarsus Pharmaceuticals, Inc. (TARS) and wondering if the big institutional money is still bullish after the massive run-up this year. Honestly, the sentiment among major shareholders is defintely positive, leaning toward a Strong Buy consensus as of November 2025, driven almost entirely by the commercial success of their flagship product, XDEMVY.

The market has responded with enthusiasm to the commercial execution. For example, in October 2025, shares rocketed 41% following the recognition of strong revenues, showing investors are rewarding the company's ability to turn a novel therapeutic into a market success. This is a clear signal that the street views Tarsus as a growth story in its early innings, not just a clinical-stage gamble anymore.

Institutional investors own a substantial portion of the company, holding approximately 90% of the stock. This high level of institutional ownership suggests deep conviction from professional money managers who have done their due diligence on the long-term potential of the Demodex blepharitis market, which affects an estimated 25 million U.S. patients.

Who's Buying and Why: The Institutional Footprint

The institutional investor profile is dominated by major asset managers and specialized biotech funds. These firms are buying because they see a clear path to market leadership with XDEMVY, which is currently the only FDA-approved treatment for Demodex blepharitis. The buying thesis is simple: Tarsus is a singular bet on a category-creating drug with a large, untapped patient population.

Here's the quick math on why the big players are in. The company reported Q3 2025 net product sales of $118.7 million, which beat analyst consensus estimates. Plus, management guided for a full-year 2025 annual revenue between $440 million and $445 million, a massive leap from the previous year. That kind of growth trajectory is what attracts the largest funds.

• BlackRock, Inc.: Holds a substantial stake, owning about 8.9% of the company.
• Vivo Capital IX LLC: A key insider and institutional holder, demonstrating strong venture capital backing.
• The Vanguard Group, Inc.: A major passive holder, reflecting the stock's inclusion in various index funds.

While institutional buying is strong, it's important to note the insider activity. We've seen some insider selling in 2025, including a director selling about $1.5 million worth of stock in September 2025. This isn't necessarily a red flag, as it's common for executives to liquidate shares for personal reasons, but it's something to monitor against the backdrop of institutional accumulation.

Analyst Perspectives and Key Investor Influence

The analyst community is overwhelmingly bullish, with a consensus rating of Moderate Buy to Strong Buy from the nine analysts covering the stock as of November 2025. The average 12-month price target hovers around $74.14, with the high end reaching $100.00. This suggests a potential upside of approximately 15.17% from the stock's trading price near the end of 2025.

The influence of key investors like BlackRock, Inc. and specialized biotech funds is primarily one of validation. Their large positions signal confidence in the long-term commercial forecast, which projects XDEMVY revenue to reach approximately $1.77 billion by 2036. This validation helps stabilize the stock price during market volatility, which is crucial for a biotech company still reporting a negative EPS of $(0.30) in Q3 2025.

The analyst confidence is grounded in the company's ability to execute on its commercial strategy and pipeline development for other conditions like ocular rosacea and Lyme disease prevention. You can see their strategic focus in the Mission Statement, Vision, & Core Values of Tarsus Pharmaceuticals, Inc. (TARS).

Here is a snapshot of the consensus analyst view and the financial performance that underpins it:

What this estimate hides is the execution risk. While the Q3 2025 results were strong, the company's selling, general, and administrative expenses surged to $108.6 million due to the commercial launch. Sustaining this high growth rate while managing the cash burn is the next big test for Tarsus Pharmaceuticals, Inc. and the factor that will truly determine if the institutional investors' bet pays off.