Revolution Medicines (NASDAQ:RVMD) Price Target Raised to $222.00

Key Points

• Piper Sandler raised its price target on Revolution Medicines from $210 to $222 and maintained an Overweight rating, implying 19.85% upside from the prior close.
• Third-quarter results beat estimates: the company reported a $1.90-per-share loss versus the expected $2.35 loss and revenue of $197.56 million versus $25.58 million forecast, driven by sales of newly launched RASONQUE.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average target of $247.33; however, Revolution Medicines remains unprofitable.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) had its price objective lifted by Piper Sandler from $210.00 to $222.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Piper Sandler's target price suggests a potential upside of 19.85% from the stock's previous close.

A number of other research analysts also recently issued reports on the company. HC Wainwright boosted their price objective on Revolution Medicines from $195.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday, August 27th. Raymond James Financial reaffirmed a "strong-buy" rating and set a $248.00 price target on shares of Revolution Medicines in a research note on Thursday, August 27th. Stifel Nicolaus raised 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. Truist Financial reissued a "buy" rating and issued a $261.00 price target (up from $241.00) on shares of Revolution Medicines in a research report on Thursday. Finally, Wedbush upped their price target on Revolution Medicines from $201.00 to $225.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $247.33.

Revolution Medicines Stock Performance

Shares of Revolution Medicines stock traded down $14.46 during trading on Thursday, hitting $185.24. 2,769,108 shares of the company's stock traded hands, compared to its average volume of 2,782,762. The company has a debt-to-equity ratio of 0.40, a current ratio of 11.38 and a quick ratio of 11.38. The business has a 50-day simple moving average of $198.21 and a 200-day simple moving average of $156.90. Revolution Medicines has a 1 year low of $58.91 and a 1 year high of $224.31. The stock has a market capitalization of $39.70 billion, a P/E ratio of -21.15 and a beta of 1.44.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported ($1.90) earnings per share for the quarter, beating analysts' consensus estimates of ($2.35) by $0.45. The company had revenue of $197.56 million for the quarter, compared to the consensus estimate of $25.58 million. During the same quarter last year, the company earned ($1.61) EPS. As a group, analysts forecast that Revolution Medicines will post -8.94 EPS for the current year.

Insider Transactions at Revolution Medicines

In other Revolution Medicines news, insider Mark A. Goldsmith sold 80,000 shares of the company's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $209.20, for a total transaction of $16,736,000.00. Following the completion of the transaction, the insider directly owned 267,330 shares in the company, valued at approximately $55,925,436. This represents a 23.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Elizabeth M. Anderson sold 10,143 shares of Revolution Medicines stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $193.04, for a total value of $1,958,004.72. Following the completion of the sale, the director owned 4,333 shares in the company, valued at approximately $836,442.32. The trade was a 70.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 290,991 shares of company stock worth $59,422,765. Insiders own 7.60% of the company's stock.

Institutional Investors Weigh In On Revolution Medicines

A number of hedge funds have recently modified their holdings of the business. Lido Advisors LLC acquired a new position in shares of Revolution Medicines in the third quarter valued at approximately $1,687,000. AlphaCore Capital LLC purchased a new stake in Revolution Medicines during the 3rd quarter worth about $361,000. Fulcrum Asset Management LLP acquired a new position in Revolution Medicines in the third quarter valued at approximately $197,000. Allspring Global Investments Holdings LLC grew its position in shares of Revolution Medicines by 1,258.7% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 29,442 shares of the company's stock valued at $6,062,000 after buying an additional 27,275 shares during the last quarter. Finally, Brighton Jones LLC increased its position in shares of Revolution Medicines by 2.9% during the third quarter. Brighton Jones LLC now owns 3,565 shares of the company's stock worth $732,000 after purchasing an additional 99 shares in the last quarter. 94.34% of the stock is currently owned by institutional investors and hedge funds.

More Revolution Medicines News

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

• Positive Sentiment: The company said the FDA approved and it launched RASONQUE (daraxonrasib) for eligible adults with metastatic pancreatic cancer. The drug generated $198 million in net product revenue in the quarter, despite being available for only part of the period. The EU’s CHMP also recommended marketing authorization. Company earnings and corporate progress release
• Positive Sentiment: Third-quarter loss was $1.90 per share, narrower than analysts’ $2.35 loss estimate. Revenue of $197.56 million also exceeded the $25.58 million consensus estimate, reflecting the new product sales. Zacks earnings report
• Positive Sentiment: Analyst updates were supportive: Guggenheim raised its target to $298 and reiterated Buy, while Truist reaffirmed Buy and lifted its target to $261. Guggenheim rating information Truist rating information
• Negative Sentiment: RVMD still reported a quarterly loss, which widened from $1.61 per share in the year-ago quarter to $1.90. This ongoing lack of profitability may temper enthusiasm around the launch and sales outlook.

About Revolution Medicines

Revolution Medicines, Inc is a clinical-stage biopharmaceutical company focused on developing targeted therapies for patients with RAS-mutant cancers. The company's research platform is designed to discover and develop medicines that inhibit RAS proteins, which play a central role in the growth and spread of many cancers and have historically been difficult to target.

Its investigational pipeline includes RAS(ON) inhibitors and other precision oncology candidates, including daraxonrasib (RMC-6236), a pan-RAS inhibitor being evaluated in multiple solid tumors, as well as programs directed at specific mutations such as KRAS G12C and KRAS G12D.

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