Bank of America Forecasts Strong Price Appreciation for Revolution Medicines (NASDAQ:RVMD) Stock

Key Points

• Bank of America raised its price target for Revolution Medicines from $225 to $265 and maintained a “buy” rating, implying approximately 37.9% upside from the prior close.
• Analyst sentiment is broadly positive: Revolution Medicines has a consensus “Moderate Buy” rating and an average price target of $228.21, with targets ranging from $179 to $320.
• Shares traded at $192.12, while the company reported a quarterly loss of $3.06 per share—wider than the expected $2.04 loss. Insiders recently sold shares primarily to cover tax obligations, while institutional investors own 94.34% of the stock.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) had its price target hoisted by analysts at Bank of America from $225.00 to $265.00 in a report issued on Monday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Bank of America's price target would suggest a potential upside of 37.94% from the stock's previous close.

A number of other brokerages have also recently issued reports on RVMD. Stifel Nicolaus boosted their price objective on Revolution Medicines from $215.00 to $230.00 and gave the stock a "buy" rating in a report on Wednesday, September 9th. Sanford C. Bernstein increased their target price on Revolution Medicines from $151.00 to $179.00 and gave the stock a "market perform" rating in a research note on Friday, August 21st. Guggenheim lifted their price target on Revolution Medicines from $240.00 to $275.00 and gave the stock a "buy" rating in a report on Friday, August 28th. Evercore restated an "outperform" rating and issued a $320.00 price target on shares of Revolution Medicines in a research note on Thursday, August 27th. Finally, HC Wainwright upped their price objective on Revolution Medicines from $195.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, August 27th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $228.21.

Revolution Medicines Stock Performance

RVMD traded up $1.17 during trading hours on Monday, reaching $192.12. The company's stock had a trading volume of 970,179 shares, compared to its average volume of 2,919,006. The company's 50-day moving average is $199.57 and its 200-day moving average is $159.97. Revolution Medicines has a 52 week low of $42.18 and a 52 week high of $224.31. The firm has a market cap of $41.18 billion, a PE ratio of -21.80 and a beta of 1.40. The company has a debt-to-equity ratio of 0.40, a quick ratio of 11.38 and a current ratio of 11.38.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($3.06) EPS for the quarter, missing analysts' consensus estimates of ($2.04) by ($1.02). During the same period in the previous year, the company earned ($1.31) EPS. On average, equities analysts forecast that Revolution Medicines will post -8.87 EPS for the current year.

Insider Buying and Selling at Revolution Medicines

In other news, insider Mark A. Goldsmith sold 13,988 shares of the company's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $199.24, for a total transaction of $2,786,969.12. Following the completion of the sale, the insider directly owned 253,342 shares in the company, valued at approximately $50,475,860.08. This represents a 5.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jack Anders sold 4,053 shares of the stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $199.24, for a total value of $807,519.72. Following the sale, the chief financial officer directly owned 119,216 shares in the company, valued at approximately $23,752,595.84. This trade represents a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 300,119 shares of company stock valued at $60,605,043 over the last ninety days. 7.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Revolution Medicines

A number of large investors have recently bought and sold shares of the company. Contravisory Investment Management Inc. acquired a new position in shares of Revolution Medicines in the 2nd quarter valued at approximately $32,000. Johnson Financial Group Inc. bought a new position in Revolution Medicines in the second quarter valued at approximately $37,000. Silvant Capital Management LLC bought a new position in Revolution Medicines in the second quarter valued at approximately $41,000. Northwestern Mutual Wealth Management Co. acquired a new position in Revolution Medicines during the second quarter valued at approximately $41,000. Finally, Allworth Financial LP lifted its stake in Revolution Medicines by 57.2% during the fourth quarter. Allworth Financial LP now owns 577 shares of the company's stock worth $46,000 after purchasing an additional 210 shares during the last quarter. 94.34% of the stock is currently owned by institutional investors and hedge funds.

About Revolution Medicines

Revolution Medicines, Inc is a clinical-stage biotechnology company focused on developing targeted treatments for cancer. The company specializes in therapies designed to inhibit oncogenic RAS signaling, a pathway involved in many difficult-to-treat cancers, including tumors driven by KRAS mutations.

Its pipeline includes investigational RAS(ON) inhibitors intended to target active forms of RAS proteins. Key programs have included daraxonrasib (RMC-6236), an oral inhibitor being studied in cancers with a range of RAS mutations, as well as mutation-selective programs such as RMC-9805 for KRAS G12D and RMC-6291 for KRAS G12C.

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