Revolution Medicines (NASDAQ:RVMD) Raised to Strong-Buy at The Goldman Sachs Group

Key Points

• Goldman Sachs upgraded Revolution Medicines to “strong buy,” joining a broadly positive analyst consensus. The stock has a consensus “Buy” rating and an average price target of $230.15, with recent targets ranging from $230 to $275.
• Revolution Medicines shares rose 4.8% to open at $199.86, near their 52-week high of $224.31. The clinical-stage biotech focuses on targeted cancer treatments aimed at oncogenic RAS signaling.
• The company reported a quarterly loss of $3.06 per share, wider than the $2.04 loss analysts expected. Meanwhile, insiders sold approximately $59.2 million of stock over the past three months, while institutional investors own 94.34% of the shares.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) was upgraded by The Goldman Sachs Group to a "strong-buy" rating in a report released on Thursday, Zacks reports.

Several other equities research analysts also recently issued reports on RVMD. Oppenheimer increased their target price on Revolution Medicines from $230.00 to $260.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Royal Bank Of Canada increased their price objective on Revolution Medicines from $203.00 to $251.00 and gave the stock an "outperform" rating in a report on Thursday, August 27th. Stifel Nicolaus raised their target price on Revolution Medicines from $215.00 to $230.00 and gave the stock a "buy" rating in a research note on Wednesday, September 9th. Needham & Company LLC lifted their target price on Revolution Medicines from $240.00 to $275.00 and gave the company a "buy" rating in a report on Monday, August 31st. Finally, Morgan Stanley assumed 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. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $230.15.

Revolution Medicines Stock Up 4.8%

RVMD stock opened at $199.86 on Thursday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 11.38 and a current ratio of 11.38. The company has a market capitalization of $42.84 billion, a price-to-earnings ratio of -22.66 and a beta of 1.40. Revolution Medicines has a fifty-two week low of $42.18 and a fifty-two week high of $224.31. The stock has a fifty day moving average of $200.44 and a 200-day moving average of $162.63.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its 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 period in the previous year, the company posted ($1.31) EPS. As a group, equities research analysts predict that Revolution Medicines will post -8.87 earnings per share for the current year.

Insiders Place Their Bets

In other Revolution Medicines news, insider Mark Goldsmith sold 80,000 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $209.20, for a total value of $16,736,000.00. Following the sale, the insider owned 267,330 shares of the company's stock, valued at $55,925,436. This trade represents a 23.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Lorence Kim sold 56,000 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $203.24, for a total value of $11,381,440.00. Following the transaction, the director directly owned 17,090 shares of the company's stock, valued at $3,473,371.60. The trade was a 76.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 290,262 shares of company stock worth $59,196,448. 7.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Revolution Medicines

Institutional investors have recently made changes to their positions in the stock. Contravisory Investment Management Inc. bought a new position in Revolution Medicines in the second quarter valued at $32,000. Johnson Financial Group Inc. purchased a new position in shares of Revolution Medicines in the 2nd quarter worth about $37,000. Silvant Capital Management LLC bought a new position in shares of Revolution Medicines during the 2nd quarter valued at about $41,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Revolution Medicines during the 2nd quarter valued at about $41,000. Finally, Rockefeller Capital Management L.P. increased its position in shares of Revolution Medicines by 82.9% during the 4th quarter. Rockefeller Capital Management L.P. now owns 598 shares of the company's stock valued at $48,000 after purchasing an additional 271 shares during the last quarter. Institutional investors own 94.34% of the company's stock.

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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