Revolution Medicines (NASDAQ:RVMD) Given Buy Rating at Needham & Company LLC

Key Points

• Needham reaffirmed its Buy rating on Revolution Medicines and set a $275 price target, implying roughly 45% upside from the quoted share price. The stock has a consensus “Moderate Buy” rating and an average target near $235.
• Revolution Medicines shares fell 2.2% to $189.26, while the company remains loss-making after reporting a quarterly loss of $3.06 per share, below analysts’ expected loss of $2.04.
• Insiders sold approximately $59.4 million of stock over the past three months, while institutional investors and hedge funds own 94.34% of the company.

Revolution Medicines (NASDAQ:RVMD - Get Free Report)'s stock had its "buy" rating reissued by research analysts at Needham & Company LLC in a research note issued to investors on Thursday, Benzinga reports. They currently have a $275.00 price objective on the stock. Needham & Company LLC's price objective indicates a potential upside of 45.30% from the stock's current price.

A number of other analysts have also recently commented on the company. TD Cowen reiterated a "buy" rating on shares of Revolution Medicines in a research report on Thursday, October 8th. The Goldman Sachs Group assumed coverage on Revolution Medicines in a research report on Thursday, September 24th. They issued a "buy" rating and a $267.00 target price for the company. Bank of America raised their price target on Revolution Medicines from $225.00 to $265.00 and gave the stock a "buy" rating in a research note on Monday, September 21st. Stifel Nicolaus raised their price target on Revolution Medicines from $215.00 to $230.00 and gave the stock a "buy" rating in a research note on Wednesday, September 9th. Finally, Morgan Stanley started coverage on Revolution Medicines in a research report on Thursday, September 10th. They set an "overweight" rating and a $255.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Revolution Medicines currently has a consensus rating of "Moderate Buy" and a consensus price target of $234.81.

Revolution Medicines Stock Down 2.2%

NASDAQ:RVMD traded down $4.26 during midday trading on Thursday, hitting $189.26. 1,568,409 shares of the company were exchanged, compared to its average volume of 2,858,448. The company has a fifty day simple moving average of $203.76 and a 200 day simple moving average of $173.39. Revolution Medicines has a fifty-two week low of $49.05 and a fifty-two week high of $224.31. The company has a current ratio of 11.38, a quick ratio of 11.38 and a debt-to-equity ratio of 0.40. The company has a market capitalization of $40.57 billion, a PE ratio of -21.46 and a beta of 1.40.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($3.06) earnings per share for the quarter, missing analysts' consensus estimates of ($2.04) by ($1.02). During the same quarter in the previous year, the firm earned ($1.31) EPS. As a group, equities analysts anticipate that Revolution Medicines will post -8.93 earnings per share for the current fiscal year.

Insider Activity at Revolution Medicines

In other Revolution Medicines news, insider Stephen Kelsey sold 92,531 shares of the firm's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $202.36, for a total transaction of $18,724,573.16. Following the transaction, the insider directly owned 291,876 shares of the company's stock, valued at approximately $59,064,027.36. This trade represents a 24.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Elizabeth Anderson sold 10,143 shares of Revolution Medicines stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $193.04, for a total transaction of $1,958,004.72. Following the completion of the transaction, the director owned 4,333 shares in the company, valued at approximately $836,442.32. This represents a 70.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 290,991 shares of company stock worth $59,422,765 in the last three months. Company insiders own 7.60% of the company's stock.

Hedge Funds Weigh In On Revolution Medicines

Several institutional investors have recently added to or reduced their stakes in RVMD. Burkett Financial Services LLC acquired a new stake in Revolution Medicines during the 3rd quarter worth approximately $27,000. Contravisory Investment Management Inc. purchased a new position in shares of Revolution Medicines in the 2nd quarter valued at approximately $32,000. Johnson Financial Group Inc. acquired a new position in shares of Revolution Medicines in the second quarter valued at approximately $37,000. Silvant Capital Management LLC acquired a new position in shares of Revolution Medicines in the second quarter valued at approximately $41,000. Finally, Northwestern Mutual Wealth Management Co. acquired a new position in shares of Revolution Medicines in the second quarter valued at approximately $41,000. Institutional investors and hedge funds own 94.34% of the company's stock.

Revolution Medicines News Summary

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: The European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion recommending marketing authorization for RASONQUE (daraxonrasib) as a once-daily treatment for adults with metastatic pancreatic cancer previously treated with at least one systemic therapy. Final authorization from the European Commission is still required. Revolution Medicines RASONQUE positive CHMP opinion
• Positive Sentiment: The recommendation was based on the Phase 3 RASolute 302 trial, which showed a 60% reduction in the risk of death versus chemotherapy, with statistically significant and clinically meaningful improvements across primary and key secondary endpoints. Benefits were reported regardless of tumor RAS mutation status, potentially broadening the drug’s addressable market. Revolution Medicines pancreatic cancer drug EU recommendation
• Positive Sentiment: Needham reaffirmed its Buy rating and set a $275 price target, while RBC raised its target to $260 and maintained an Outperform rating. These targets indicate analysts see substantial upside from the quoted share price. Analyst ratings and price targets
• Neutral Sentiment: Brokerages’ average target price is $234.76, reflecting continued confidence in RVMD’s pipeline and commercial prospects. However, the company remains loss-making, so valuation and execution expectations are high. Revolution Medicines average broker price target

About Revolution Medicines

Revolution Medicines, Inc is a clinical-stage biotechnology company focused on developing targeted therapies for patients with cancer. The company's research centers on the RAS signaling pathway, a key driver of tumor growth that is altered in many cancers, including those involving KRAS mutations.

Its pipeline includes RAS(ON) inhibitors designed to target active RAS proteins and address a range of RAS-driven tumors. Key development programs include daraxonrasib (RMC-6236), a broad-spectrum RAS inhibitor, and zoldonrasib (RMC-9805), an investigational inhibitor aimed at KRAS G12D-mutated cancers.