Arcus Biosciences (NYSE:RCUS) Now Covered by JPMorgan Chase & Co.

Key Points

• JPMorgan initiated coverage of Arcus Biosciences with an “overweight” rating and a $41 price target, implying approximately 81.9% upside from the prior close.
• Analyst sentiment is generally positive: 11 analysts rate the stock Buy, three Hold, and one Sell, producing a consensus “Moderate Buy” rating and an average price target of $38.55.
• Arcus beat quarterly expectations with an adjusted loss of $0.72 per share versus the $0.89 estimate and revenue of $41 million, though revenue declined 74.4% year over year and the company remains unprofitable.

Stock analysts at JPMorgan Chase & Co. assumed coverage on shares of Arcus Biosciences (NYSE:RCUS - Get Free Report) in a report released on Wednesday, Benzinga reports. The firm set an "overweight" rating and a $41.00 price target on the stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 81.87% from the company's previous close.

A number of other research analysts have also weighed in on the stock. Cantor Fitzgerald reiterated an "overweight" rating on shares of Arcus Biosciences in a research note on Friday, September 11th. Wall Street Zen upgraded Arcus Biosciences from a "sell" rating to a "hold" rating in a research report on Saturday, October 3rd. TD Cowen began coverage on Arcus Biosciences in a research report on Wednesday, September 16th. They issued a "buy" rating for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Arcus Biosciences in a research note on Friday, July 17th. Finally, Morgan Stanley set a $23.00 price objective on Arcus Biosciences in a report on Monday, August 10th. Eleven equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $38.55.

Arcus Biosciences Price Performance

RCUS opened at $22.54 on Wednesday. The company has a market capitalization of $2.87 billion, a price-to-earnings ratio of -5.78 and a beta of 0.94. The company has a quick ratio of 3.82, a current ratio of 3.82 and a debt-to-equity ratio of 0.22. The firm has a 50-day moving average price of $27.31 and a 200-day moving average price of $26.20. Arcus Biosciences has a twelve month low of $15.38 and a twelve month high of $31.74.

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

Insider Activity

In other news, CAO Alexander Azoy sold 2,827 shares of the company's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $30.00, for a total value of $84,810.00. Following the completion of the transaction, the chief accounting officer directly owned 39,581 shares in the company, valued at approximately $1,187,430. This represents a 6.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 7.60% of the company's stock.

Hedge Funds Weigh In On Arcus Biosciences

A number of large investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Arcus Biosciences in the second quarter worth $506,113,000. Parkman Healthcare Partners LLC purchased a new stake in Arcus Biosciences during the second quarter valued at about $28,341,000. Bank of America Corp DE purchased a new stake in Arcus Biosciences during the second quarter valued at about $25,759,000. Bank of New York Mellon Corp bought a new position in shares of Arcus Biosciences during the second quarter valued at about $16,741,000. Finally, Renaissance Technologies LLC grew its stake in shares of Arcus Biosciences by 1,198.8% during the first quarter. Renaissance Technologies LLC now owns 424,700 shares of the company's stock valued at $9,174,000 after buying an additional 392,000 shares during the last quarter. 92.89% of the stock is owned by hedge funds and other institutional investors.

About Arcus Biosciences

Arcus Biosciences, Inc is a biopharmaceutical company focused on discovering and developing medicines for the treatment of cancer. The company uses a proprietary research platform to develop small-molecule and antibody-based therapies designed to target biological mechanisms involved in tumor growth and immune-system regulation.

Arcus' oncology pipeline has included investigational therapies such as zimberelimab, an anti-PD-1 antibody; domvanalimab, an anti-TIGIT antibody; quemliclustat, a CD73 inhibitor; and etrumadenant, an adenosine receptor antagonist.

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