Revolution Medicines (NASDAQ:RVMD) Upgraded to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Revolution Medicines from “Sell” to “Hold.” Despite the change, analyst consensus remains “Moderate Buy,” with a reported average price target of $263.15.
• Third-quarter revenue was $197.56 million, well above the $25.58 million consensus estimate, while the loss per share was narrower than expected. Revenue was attributed to strong early uptake of Rasonque following its U.S. launch.
• Shares rose 8.2% and opened at $192.28; the article also notes that insiders sold about 291,000 shares worth $59.4 million over the prior 90 days.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

RVMD has been the subject of several other research reports. Needham & Company LLC reiterated a "buy" rating and set a $275.00 price objective on shares of Revolution Medicines in a research note on Thursday, October 15th. Evercore reissued an "outperform" rating and issued a $320.00 price target on shares of Revolution Medicines in a research report on Thursday, August 27th. UBS Group upped their price target on Revolution Medicines from $220.00 to $265.00 and gave the company a "buy" rating in a research note on Friday, August 28th. Truist Financial reiterated a "buy" rating and set a $261.00 price target (up from $241.00) on shares of Revolution Medicines in a research report on Thursday. Finally, William Blair began coverage on shares of Revolution Medicines in a report on Friday, October 16th. They issued an "outperform" rating for the company. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $263.15.

Revolution Medicines Stock Up 8.2%

Revolution Medicines stock opened at $192.28 on Friday. The stock has a market capitalization of $41.21 billion, a PE ratio of -21.11 and a beta of 1.44. The company has a quick ratio of 11.38, a current ratio of 11.38 and a debt-to-equity ratio of 0.40. The company has a 50 day moving average of $196.88 and a 200-day moving average of $157.56. Revolution Medicines has a twelve month low of $58.91 and a twelve month high of $224.31.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The company reported ($1.90) earnings per share for the quarter, topping the consensus estimate of ($2.35) by $0.45. The business had revenue of $197.56 million during the quarter, compared to the consensus estimate of $25.58 million. During the same period last year, the business posted ($1.61) earnings per share. On average, equities research analysts anticipate that Revolution Medicines will post -8.94 EPS for the current fiscal year.

Insider Transactions at Revolution Medicines

In related news, insider Alan Sandler sold 6,309 shares of the business's stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $202.14, for a total transaction of $1,275,301.26. Following the completion of the sale, the insider owned 52,559 shares of the company's stock, valued at $10,624,276.26. This represents a 10.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Elizabeth 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 transaction, the director directly owned 4,333 shares in the company, valued at $836,442.32. This represents a 70.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 290,991 shares of company stock worth $59,422,765 over the last 90 days. 7.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Revolution Medicines

Several large investors have recently made changes to their positions in RVMD. Burkett Financial Services LLC bought a new stake in shares of Revolution Medicines during the 3rd quarter valued at $27,000. Contravisory Investment Management Inc. purchased a new stake in shares of Revolution Medicines in the second quarter valued at about $32,000. Johnson Financial Group Inc. acquired a new position in Revolution Medicines during the 2nd quarter worth approximately $37,000. Silvant Capital Management LLC acquired a new position in shares of Revolution Medicines during the second quarter worth about $41,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in Revolution Medicines during the 2nd quarter worth about $41,000. 94.34% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Revolution Medicines

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

• Positive Sentiment: Strong early Rasonque sales: Revolution Medicines reported $197.6 million in third-quarter revenue, beating estimates, with Rasonque generating that amount in just five weeks after its U.S. launch. The company said more than 5,000 patients had been treated. The quarterly loss per share also came in narrower than analysts expected. Zacks article on Q3 results and Rasonque uptake
• Positive Sentiment: Analyst targets moved higher: HC Wainwright raised its target to $350 and maintained a Buy rating. RBC lifted its target to $321 with an Outperform rating; Guggenheim, Truist and TD Cowen also raised targets and retained positive ratings. These revisions signal optimism about the drug’s commercial potential and pipeline. HC Wainwright recommendations RBC target increase
• Neutral Sentiment: Long-term opportunity, but expectations are high: Rasonque’s clinical results and potential expansion into other solid tumors support the pipeline outlook. However, commentary noted that RVMD’s roughly $40 billion valuation already reflects substantial expectations, making sustained launch growth and upcoming clinical results important. Seeking Alpha analysis of Q3 results
• Negative Sentiment: Some long-range forecasts were cut: Brookline Capital Markets lowered its FY2029 EPS estimate to $8.49 from $8.94 and its FY2030 estimate to $17.41 from $18.15, though it kept a Buy rating and a $318 target.

About Revolution Medicines

Revolution Medicines, Inc is a biotechnology company focused on developing targeted therapies for patients with RAS-driven cancers. Founded in 2014 and headquartered in Redwood City, California, the company's research centers on RAS proteins, which can contribute to the growth of many cancers.

The company's pipeline includes drug candidates designed to inhibit mutant RAS proteins, including daraxonrasib (RMC-6236), which targets multiple RAS variants, and candidates directed at specific KRAS mutations.

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