Royal Bank Of Canada Forecasts Strong Price Appreciation for Revolution Medicines (NASDAQ:RVMD) Stock

Key Points

• Royal Bank of Canada raised Revolution Medicines’ price target to $260 from $259 and maintained an “outperform” rating, implying 33.83% upside from the prior close.
• Analyst sentiment is broadly positive: the stock has a “Moderate Buy” consensus rating and an average price target of $234.81, although one analyst maintains a sell rating.
• Revolution Medicines reported a quarterly loss of $3.06 per share, missing the $2.04 consensus estimate, while insiders sold nearly 291,000 shares worth about $59.4 million during the last quarter.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) had its price objective lifted by equities research analysts at Royal Bank Of Canada from $259.00 to $260.00 in a report issued on Wednesday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target suggests a potential upside of 33.83% from the company's previous close.

Other equities research analysts have also issued research reports about the company. Wolfe Research reiterated an "outperform" rating and issued a $220.00 target price on shares of Revolution Medicines in a research note on Monday, August 10th. Guggenheim raised their price objective on Revolution Medicines from $240.00 to $275.00 and gave the stock a "buy" rating in a research note on Friday, August 28th. Stifel Nicolaus increased 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. The Goldman Sachs Group began coverage on Revolution Medicines in a research report on Thursday, September 24th. They set a "buy" rating and a $267.00 price target on the stock. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Revolution Medicines in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $234.81.

Revolution Medicines Stock Performance

NASDAQ RVMD traded up $5.83 on Wednesday, hitting $194.27. 65,038 shares of the company's stock were exchanged, compared to its average volume of 2,852,551. The firm has a market cap of $41.64 billion, a price-to-earnings ratio of -22.18 and a beta of 1.40. Revolution Medicines has a fifty-two week low of $47.45 and a fifty-two week high of $224.31. The firm's 50-day moving average price is $204.01 and its two-hundred day moving average price is $172.00. The company has a debt-to-equity ratio of 0.40, a current ratio of 11.38 and a quick ratio of 11.38.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its quarterly earnings data 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 last year, the firm earned ($1.31) EPS. On average, research analysts expect that Revolution Medicines will post -8.98 EPS for the current year.

Insider Buying and Selling

In related news, insider Mark Goldsmith sold 80,000 shares of Revolution Medicines stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $209.20, for a total transaction of $16,736,000.00. Following the sale, the insider directly owned 267,330 shares of the company's stock, valued at $55,925,436. This trade represents a 23.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Alan Sandler sold 6,309 shares of the company's stock in a transaction dated Tuesday, September 29th. The stock was 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 directly owned 52,559 shares in the company, valued at approximately $10,624,276.26. The trade was a 10.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 290,991 shares of company stock worth $59,422,765. 7.60% of the stock is currently owned by company insiders.

Institutional Trading of Revolution Medicines

Hedge funds have recently bought and sold shares of the stock. Janus Henderson Group PLC raised its stake in Revolution Medicines by 8.3% in the fourth quarter. Janus Henderson Group PLC now owns 12,303,502 shares of the company's stock valued at $980,036,000 after buying an additional 947,448 shares during the period. Alphabet Inc. acquired a new stake in Revolution Medicines during the 2nd quarter worth approximately $551,843,000. ABS Investment Management LLC bought a new position in Revolution Medicines during the 2nd quarter worth $337,104,000. General Atlantic L.P. increased its position in Revolution Medicines by 13.7% during the 4th quarter. General Atlantic L.P. now owns 2,812,928 shares of the company's stock worth $224,050,000 after buying an additional 338,500 shares during the period. Finally, Bank of America Corp DE acquired a new position in shares of Revolution Medicines in the second quarter valued at about $184,267,000. 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 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.

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