Arcus Biosciences (NYSE:RCUS) Stock Price Expected to Rise, Wedbush Analyst Says

Key Points

• Wedbush raised Arcus Biosciences’ price target to $49 from $43 and maintained an “outperform” rating, implying roughly 107% upside from the reported $23.69 share price.
• Analyst sentiment is generally positive: 12 analysts rate the stock a Buy, three a Hold and one a Sell, producing a “Moderate Buy” consensus and average target of $39.09.
• Arcus remains a loss-making clinical-stage biotech, despite beating quarterly revenue and EPS expectations; investors are focused on the potential of its casdatifan kidney-cancer program, while clinical, regulatory and earnings risks remain.

Arcus Biosciences (NYSE:RCUS - Get Free Report) had its price objective raised by research analysts at Wedbush from $43.00 to $49.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Wedbush's price target points to a potential upside of 106.86% from the stock's current price.

Several other equities research analysts have also commented on RCUS. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Arcus Biosciences in a report on Friday, September 11th. JPMorgan Chase & Co. initiated coverage on Arcus Biosciences in a research note on Wednesday, October 14th. They set an "overweight" rating and a $41.00 price objective for the company. Wells Fargo & Company boosted their price objective on Arcus Biosciences from $23.00 to $26.00 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Morgan Stanley set a $23.00 target price on Arcus Biosciences in a research note on Monday, August 10th. Finally, Citigroup restated a "buy" rating on shares of Arcus Biosciences in a research note on Wednesday. Twelve investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Arcus Biosciences has a consensus rating of "Moderate Buy" and an average price target of $39.09.

Arcus Biosciences Stock Up 7.0%

RCUS stock opened at $23.69 on Wednesday. The firm's fifty day simple moving average is $26.73 and its 200-day simple moving average is $26.25. The company has a market capitalization of $3.02 billion, a P/E ratio of -6.07 and a beta of 0.94. The company has a debt-to-equity ratio of 0.22, a current ratio of 3.82 and a quick ratio of 3.82. Arcus Biosciences has a 12 month low of $16.41 and a 12 month high of $31.74.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.72) earnings per share for the quarter, topping analysts' consensus estimates of ($0.89) by $0.17. Arcus Biosciences had a negative net margin of 393.16% and a negative return on equity of 89.54%. The firm had revenue of $41.00 million for the quarter, compared to analyst estimates of $21.98 million. The business's revenue was down 74.4% compared to the same quarter last year. As a group, equities research analysts forecast that Arcus Biosciences will post -3.55 earnings per share for the current year.

Insider Activity at Arcus Biosciences

In related news, CAO Alexander Azoy sold 2,827 shares of Arcus Biosciences 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 owned 39,581 shares in the company, valued at $1,187,430. The trade was a 6.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 7.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Arcus Biosciences

A number of large investors have recently bought and sold shares of the business. GAMMA Investing LLC lifted its holdings in Arcus Biosciences by 22.4% during the third quarter. GAMMA Investing LLC now owns 4,855 shares of the company's stock valued at $125,000 after purchasing an additional 889 shares in the last quarter. WINTON GROUP Ltd increased its stake in shares of Arcus Biosciences by 59.7% during the second quarter. WINTON GROUP Ltd now owns 52,398 shares of the company's stock worth $1,615,000 after purchasing an additional 19,578 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of Arcus Biosciences during the second quarter worth about $30,000. Arizona State Retirement System increased its stake in shares of Arcus Biosciences by 1.7% during the second quarter. Arizona State Retirement System now owns 24,211 shares of the company's stock worth $746,000 after purchasing an additional 409 shares in the last quarter. Finally, Nykredit A S acquired a new position in shares of Arcus Biosciences during the 2nd quarter worth about $134,000. Institutional investors and hedge funds own 92.89% of the company's stock.

More Arcus Biosciences News

Here are the key news stories impacting Arcus Biosciences this week:

• Positive Sentiment: New ARC-20 data showed casdatifan activity across multiple treatment lines in clear-cell renal cell carcinoma, supporting Arcus’s view that the drug could become a foundational treatment throughout the course of kidney-cancer therapy. Arcus Presents New Data from ARC-20
• Positive Sentiment: Coverage highlighted casdatifan’s activity across treatment settings, raising the drug’s commercial potential if results are confirmed in later-stage studies. Casdatifan Shows Activity Across Treatment Lines
• Positive Sentiment: Analysts responded favorably to the ARC-20 platform data, and some coverage framed casdatifan as a potential competitor to major kidney-cancer therapies, helping drive renewed investor interest in RCUS. Arcus rises as analysts cheer ARC-20 data
• Neutral Sentiment: Arcus discussed the results during a special call and investor transcript, giving the market additional detail on casdatifan’s development opportunity but not eliminating clinical-development and regulatory uncertainty. Arcus Biosciences Special Call Transcript
• Negative Sentiment: Investors initially focused on concerns surrounding the trial disclosure, with one report noting a sharp early decline before the stock reversed higher. The mixed reaction indicates that the data may still require validation through later-stage trials. Arcus stock tumbles after casdatifan data
• Negative Sentiment: Zacks warned that Arcus lacks the usual indicators for a likely earnings beat ahead of its third-quarter report, adding near-term pressure given the company’s continuing losses and dependence on clinical milestones. Arcus May Report Negative Earnings

About Arcus Biosciences

Arcus Biosciences, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for cancer and other serious diseases. The company uses its research platform to discover and advance medicines designed to target immune suppression and other biological mechanisms involved in tumor growth.

Arcus's oncology pipeline has included antibody-based and small-molecule therapies aimed at targets such as TIGIT, PD-1, CD73, and the adenosine A2A and A2B receptors. Its key development programs have included domvanalimab, zimberelimab, quemliclustat, and etrumadenant, which have been evaluated in clinical studies across several cancer types, including lung, gastrointestinal, and colorectal cancers.

Founded in 2015 and headquartered in Hayward, California, Arcus conducts research and clinical-development activities intended to support potential commercialization in international markets.

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