Wedbush Forecasts Strong Price Appreciation for Revolution Medicines (NASDAQ:RVMD) Stock

Key Points

• Wedbush raised its Revolution Medicines price target to $225 from $201 and maintained an “outperform” rating, implying modest upside from the stock’s prior close. Overall analyst sentiment remains favorable, with a “Moderate Buy” consensus and 20 Buy or Strong Buy ratings.
• Revolution Medicines shares opened at $218.86, near their 52-week high of $220.34, after gaining substantially over the past year. The company has a market capitalization of approximately $46.9 billion, while institutional investors own 94.34% of its stock.
• Execution and valuation remain key risks: the company reported a quarterly loss of $3.06 per share, wider than the expected $2.04 loss, and insiders sold more than $38 million of stock during the quarter.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) had its price target boosted by analysts at Wedbush from $201.00 to $225.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Wedbush's price objective indicates a potential upside of 2.81% from the company's previous close.

A number of other brokerages also recently issued reports on RVMD. TD Cowen raised Revolution Medicines to a "strong-buy" rating in a report on Monday. Evercore restated an "outperform" rating on shares of Revolution Medicines in a research note on Thursday. Truist Financial upped their target price on Revolution Medicines from $231.00 to $239.00 and gave the company a "buy" rating in a research report on Thursday. Mizuho lifted their price target on Revolution Medicines from $185.00 to $215.00 and gave the stock an "outperform" rating in a research report on Monday, July 6th. Finally, Piper Sandler boosted their price objective on Revolution Medicines to $172.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Revolution Medicines presently has an average rating of "Moderate Buy" and an average price target of $174.39.

Revolution Medicines Stock Up 1.6%

Shares of NASDAQ RVMD opened at $218.86 on Thursday. The company has a market capitalization of $46.91 billion, a price-to-earnings ratio of -24.85 and a beta of 1.39. 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 moving average of $191.27 and a two-hundred day moving average of $147.30. Revolution Medicines has a 1 year low of $37.56 and a 1 year high of $220.34.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($3.06) EPS for the quarter, missing analysts' consensus estimates of ($2.04) by ($1.02). During the same quarter last year, the firm posted ($1.31) earnings per share. On average, analysts forecast that Revolution Medicines will post -8.82 earnings per share for the current fiscal year.

Insider Activity

In other Revolution Medicines news, COO Margaret A. Horn sold 29,600 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $160.12, for a total transaction of $4,739,552.00. Following the completion of the sale, the chief operating officer directly owned 154,647 shares of the company's stock, valued at approximately $24,762,077.64. This trade represents a 16.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jack Anders sold 20,000 shares of Revolution Medicines stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $168.33, for a total value of $3,366,600.00. Following the completion of the transaction, the chief financial officer owned 123,269 shares in the company, valued at $20,749,870.77. This trade represents a 13.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 212,497 shares of company stock worth $38,206,486 over the last quarter. 7.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Revolution Medicines

A number of large investors have recently bought and sold shares of the company. HighTower Advisors LLC lifted its stake in shares of Revolution Medicines by 311.2% in the 2nd quarter. HighTower Advisors LLC now owns 10,485 shares of the company's stock worth $1,964,000 after acquiring an additional 7,935 shares during the period. California State Teachers Retirement System increased its stake in shares of Revolution Medicines by 26,920.9% during the second quarter. California State Teachers Retirement System now owns 44,659,351 shares of the company's stock worth $8,363,803,000 after acquiring an additional 44,494,074 shares during the period. Washington Trust Advisors Inc. purchased a new position in Revolution Medicines during the second quarter worth about $90,000. Readystate Asset Management LP raised its holdings in Revolution Medicines by 18.5% during the second quarter. Readystate Asset Management LP now owns 37,727 shares of the company's stock worth $7,066,000 after purchasing an additional 5,880 shares in the last quarter. Finally, Ameritas Advisory Services LLC acquired a new stake in Revolution Medicines in the second quarter valued at about $48,000. Hedge funds and other institutional investors own 94.34% of the company's stock.

Revolution Medicines News Roundup

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

• Positive Sentiment: FDA approves RASONQUE: The FDA approved RASONQUE (daraxonrasib), Revolution Medicines’ oral RAS-targeted therapy, for adults with previously treated metastatic pancreatic ductal adenocarcinoma or patients unable to receive combination chemotherapy. The company describes it as the first broad RAS-targeted medicine approved for metastatic pancreatic cancer, creating a significant commercial opportunity in a disease with limited treatment options. FDA approval announcement
• Positive Sentiment: Commercial launch and pricing established: Revolution Medicines priced RASONQUE at approximately $39,800 per month, providing investors with an initial benchmark for potential sales and reimbursement economics. Rapid FDA approval also shortens the path from clinical development to revenue generation. RASONQUE pricing article
• Positive Sentiment: Analyst support increased: TD Cowen upgraded RVMD, adding to an already favorable analyst backdrop. Recent firms including Oppenheimer, Truist Financial, RBC and Needham have maintained Buy or Outperform ratings and raised price targets, reinforcing confidence in the drug’s launch and broader RAS-inhibitor pipeline. TD Cowen upgrade
• Neutral Sentiment: Stock already reflects substantial optimism: RVMD has risen sharply over the past year and is trading close to its $220.34 12-month high, with a market capitalization of about $46 billion. Investors may therefore demand strong launch execution and sales growth to justify the current valuation.
• Negative Sentiment: High price could weigh on adoption: The nearly $40,000 monthly list price has prompted concerns that payer negotiations, reimbursement hurdles or affordability issues could slow uptake, which may explain why investor enthusiasm has been more measured despite the approval. Drug pricing concerns
• Negative Sentiment: Insider selling: Director Mark Goldsmith sold 80,000 shares for approximately $16.7 million, reducing his holdings by about 23%. The sale does not change the company’s fundamentals but may create a modest sentiment overhang, particularly after the stock’s substantial advance. Insider sale report

Revolution Medicines Company Profile

Revolution Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapies to treat RAS-dependent cancers and other diseases driven by the RAS/MAPK pathway. The company's research efforts target historically “undruggable” proteins, aiming to inhibit critical nodes in cell signaling that promote tumor growth and therapeutic resistance.

The lead pipeline includes RMC-4630, a SHP2 inhibitor; RMC-6291, a selective KRAS G12C inhibitor; and RMC-6236, a pan-RAS inhibitor designed to address multiple RAS mutations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source