Arcus Biosciences (NYSE:RCUS) Stock Rating Reaffirmed as "Outperform" by Wedbush

Key Points

• Wedbush reaffirmed its “Outperform” rating on Arcus Biosciences and maintained a $43 price target, implying 67.49% upside from the prior close.
• Analyst sentiment is broadly positive, with 10 Buy ratings, three Holds, and one Sell; MarketBeat reports a “Moderate Buy” consensus and an average price target of $38.30.
• Arcus exceeded quarterly expectations, reporting an adjusted loss of $0.72 per share versus the $0.89 consensus estimate and revenue of $41 million, although revenue declined 74.4% year over year.

Arcus Biosciences (NYSE:RCUS - Get Free Report)'s stock had its "outperform" rating reaffirmed by equities researchers at Wedbush in a report issued on Wednesday, Benzinga reports. They currently have a $43.00 price target on the stock. Wedbush's price objective indicates a potential upside of 67.49% from the company's previous close.

RCUS has been the subject of several other research reports. Weiss Ratings restated a "sell (d-)" rating on shares of Arcus Biosciences in a research note on Friday, July 17th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Arcus Biosciences in a research note on Friday, September 11th. Lifesci Capital began coverage on shares of Arcus Biosciences in a research report on Thursday, June 4th. They issued an "outperform" rating and a $46.00 price objective for the company. TD Cowen assumed coverage on Arcus Biosciences in a research report on Wednesday, September 16th. They set a "buy" rating on the stock. Finally, Wells Fargo & Company lifted their price target on Arcus Biosciences from $23.00 to $26.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Ten equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $38.30.

Arcus Biosciences Stock Performance

NYSE RCUS opened at $25.67 on Wednesday. The firm has a market cap of $3.27 billion, a P/E ratio of -6.58 and a beta of 0.81. Arcus Biosciences has a 52-week low of $12.89 and a 52-week high of $31.74. The business's 50-day moving average price is $28.08 and its 200 day moving average price is $26.02. The company has a quick ratio of 3.82, a current ratio of 3.82 and a debt-to-equity ratio of 0.22.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.72) earnings per share for the quarter, beating the consensus estimate of ($0.89) by $0.17. Arcus Biosciences had a negative return on equity of 89.54% and a negative net margin of 393.16%.The company had revenue of $41.00 million for the quarter, compared to the consensus estimate of $21.98 million. The firm's revenue for the quarter was down 74.4% compared to the same quarter last year. On average, equities research analysts expect that Arcus Biosciences will post -3.53 earnings per share for the current year.

Insider Activity

In related news, President Juan C. Jaen sold 20,067 shares of Arcus Biosciences stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $28.62, for a total transaction of $574,317.54. Following the completion of the transaction, the president directly owned 822,240 shares in the company, valued at $23,532,508.80. The trade was a 2.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Alexander Azoy sold 2,827 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $30.00, for a total value of $84,810.00. Following the sale, the chief accounting officer owned 39,581 shares in the company, valued at approximately $1,187,430. This trade represents a 6.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 71,396 shares of company stock worth $2,116,613 over the last quarter. Insiders own 7.60% of the company's stock.

Institutional Trading of Arcus Biosciences

Several institutional investors and hedge funds have recently made changes to their positions in RCUS. BlackRock Inc. acquired a new position in Arcus Biosciences in the 2nd quarter valued at about $506,113,000. Parkman Healthcare Partners LLC acquired a new stake in shares of Arcus Biosciences during the 2nd quarter worth about $28,341,000. Bank of America Corp DE purchased a new stake in shares of Arcus Biosciences during the second quarter worth about $25,759,000. Bank of New York Mellon Corp acquired a new position in shares of Arcus Biosciences in the second quarter valued at approximately $16,741,000. Finally, First Turn Management LLC purchased a new position in shares of Arcus Biosciences during the fourth quarter valued at approximately $13,467,000. 92.89% of the stock is currently owned by hedge funds and other institutional investors.

Arcus Biosciences Company Profile

Arcus Biosciences, Inc is a clinical-stage biopharmaceutical company focused on developing medicines for cancer and other serious diseases. The company combines antibody-based therapies, small-molecule drugs and combination treatment strategies designed to influence the immune system and other biological pathways involved in tumor growth.

Its oncology pipeline includes investigational therapies targeting pathways such as TIGIT, PD-1, CD73, adenosine receptors and HIF-2α. Key programs have included domvanalimab, an anti-TIGIT antibody; zimberelimab, an anti-PD-1 antibody; quemliclustat, a CD73 inhibitor; etrumadenant, an adenosine receptor antagonist; and AB521, an HIF-2α inhibitor.