Arcus Biosciences (NYSE:RCUS) Stock Price Target Lowered at Truist Financial

Key Points

• Truist cut its price target on Arcus Biosciences from $41 to $40 but maintained a Buy rating; the target implies about 115% upside from the prior close.
• Shares fell 3.7% to $18.60 on Thursday. Analysts overall rate the stock a “Moderate Buy,” with an average price target of $39.18.
• Quarterly revenue of $9 million topped estimates, but Arcus posted a $1.00-per-share loss versus the expected $0.89 loss, and revenue declined 65.4% year over year.

Arcus Biosciences (NYSE:RCUS - Get Free Report) had its price target decreased by investment analysts at Truist Financial from $41.00 to $40.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Truist Financial's target price would indicate a potential upside of 115.01% from the stock's previous close.

A number of other analysts also recently issued reports on RCUS. Wells Fargo & Company raised their price objective on Arcus Biosciences from $23.00 to $26.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Arcus Biosciences in a research note on Friday, September 11th. JPMorgan Chase & Co. assumed coverage on shares of Arcus Biosciences in a research note on Wednesday, October 14th. They issued an "overweight" rating and a $41.00 price target on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Arcus Biosciences in a report on Thursday, October 15th. Finally, William Blair started coverage on shares of Arcus Biosciences in a research report on Friday, October 16th. They set an "outperform" rating for the company. Twelve 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. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $39.18.

Arcus Biosciences Trading Down 3.7%

NYSE RCUS traded down $0.71 on Thursday, reaching $18.60. 214,892 shares of the company were exchanged, compared to its average volume of 1,417,147. The company has a current ratio of 3.82, a quick ratio of 3.82 and a debt-to-equity ratio of 0.22. The business's fifty day moving average price is $24.26 and its 200 day moving average price is $24.58. The stock has a market capitalization of $2.37 billion, a P/E ratio of -4.80 and a beta of 1.04. Arcus Biosciences has a fifty-two week low of $17.43 and a fifty-two week high of $31.74.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported ($1.00) earnings per share for the quarter, missing the consensus estimate of ($0.89) by ($0.11). Arcus Biosciences had a negative net margin of 393.16% and a negative return on equity of 89.54%. The firm had revenue of $9.00 million for the quarter, compared to analyst estimates of $7.58 million. During the same period in the previous year, the firm posted ($1.27) EPS. The company's revenue was down 65.4% compared to the same quarter last year. Analysts forecast that Arcus Biosciences will post -3.55 earnings per share for the current year.

Insider Transactions at Arcus Biosciences

In related news, CAO Alexander Azoy sold 2,827 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $30.00, for a total transaction of $84,810.00. Following the transaction, the chief accounting officer owned 39,581 shares in the company, valued at $1,187,430. This trade represents a 6.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through 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.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RCUS. Integrated Wealth Concepts LLC purchased a new stake in shares of Arcus Biosciences during the 2nd quarter worth approximately $30,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Arcus Biosciences during the 3rd quarter valued at about $45,000. KBC Group NV purchased a new stake in shares of Arcus Biosciences during the 1st quarter valued at $50,000. Sterling Capital Management LLC grew its holdings in shares of Arcus Biosciences by 328.4% during the 3rd quarter. Sterling Capital Management LLC now owns 2,716 shares of the company's stock worth $70,000 after purchasing an additional 2,082 shares during the period. Finally, Royal Bank of Canada raised its stake in shares of Arcus Biosciences by 14.6% in the 1st quarter. Royal Bank of Canada now owns 4,758 shares of the company's stock valued at $102,000 after acquiring an additional 607 shares during the period. 92.89% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Arcus Biosciences

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

• Positive Sentiment: Wedbush maintained an Outperform rating while lowering its price target from $49 to $45. The revised target still implies substantial upside from the referenced $19.10 share price. Wedbush rating information
• Positive Sentiment: Third-quarter revenue was $9 million, above analyst estimates of $7.58 million. Arcus third-quarter results and pipeline update
• Neutral Sentiment: Analysts’ average price target was reported at $39.64, indicating favorable potential relative to the referenced share price, though targets are estimates and not guarantees. Analyst average price target report
• Negative Sentiment: Arcus reported a third-quarter loss of $1.00 per share, worse than consensus estimates of a $0.89 loss. Revenue was also down 65.4% from the same quarter last year, highlighting ongoing pressure despite the estimate beat. Arcus Q3 earnings report

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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