Arcus Biosciences, Inc. (NYSE:RCUS) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Consensus "Moderate Buy": Twelve analysts cover Arcus with a consensus rating of Moderate Buy (1 sell, 3 hold, 7 buy, 1 strong buy) and an average 12‑month price target of $30.80, with notable upgrades from Goldman Sachs and a Leerink target boost to $49.00.
• Recent results showed the company beat estimates—EPS of ($0.89) vs. ($1.11) expected and revenue of $33.0M vs. $24.94M—but Arcus remains unprofitable (negative net margin ~142.9%) and analysts forecast a full‑year EPS around -3.15.
• Shares trade near $24.25 with a market cap of about $3.04B, while institutional ownership is very high (~92.89%), and major funds including Vanguard, Wellington and State Street materially increased positions in the latest quarter.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twelve ratings firms that are covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, three have issued a hold recommendation, seven have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $30.80.

Several equities research analysts have commented on the company. The Goldman Sachs Group raised Arcus Biosciences from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $16.00 to $28.00 in a report on Monday, January 12th. HC Wainwright reissued a "buy" rating and issued a $32.00 target price on shares of Arcus Biosciences in a report on Monday, March 2nd. Wells Fargo & Company set a $23.00 target price on Arcus Biosciences and gave the stock an "equal weight" rating in a report on Thursday, February 12th. Leerink Partners boosted their target price on Arcus Biosciences from $36.00 to $49.00 and gave the stock an "outperform" rating in a report on Monday, March 2nd. Finally, Morgan Stanley reissued an "equal weight" rating and issued a $20.00 target price (down from $23.00) on shares of Arcus Biosciences in a report on Thursday, January 8th.

Arcus Biosciences Trading Up 2.8%

NYSE RCUS opened at $24.25 on Friday. The company has a quick ratio of 4.36, a current ratio of 4.36 and a debt-to-equity ratio of 0.16. Arcus Biosciences has a twelve month low of $7.06 and a twelve month high of $26.40. The firm has a market capitalization of $3.04 billion, a PE ratio of -7.35 and a beta of 0.86. The stock's 50 day moving average is $21.65 and its 200 day moving average is $21.21.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The company reported ($0.89) earnings per share for the quarter, beating the consensus estimate of ($1.11) by $0.22. Arcus Biosciences had a negative return on equity of 65.77% and a negative net margin of 142.91%.The company had revenue of $33.00 million for the quarter, compared to analyst estimates of $24.94 million. During the same period in the previous year, the company posted ($1.03) earnings per share. The firm's revenue was down 8.3% on a year-over-year basis. Research analysts forecast that Arcus Biosciences will post -3.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Arcus Biosciences

Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in Arcus Biosciences by 20.1% in the fourth quarter. Vanguard Group Inc. now owns 7,962,874 shares of the company's stock worth $189,755,000 after acquiring an additional 1,333,421 shares in the last quarter. Suvretta Capital Management LLC increased its holdings in shares of Arcus Biosciences by 40.7% in the 4th quarter. Suvretta Capital Management LLC now owns 5,188,858 shares of the company's stock worth $123,650,000 after purchasing an additional 1,500,000 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of Arcus Biosciences by 309.4% in the 4th quarter. Wellington Management Group LLP now owns 5,184,509 shares of the company's stock worth $123,547,000 after purchasing an additional 3,918,220 shares in the last quarter. State Street Corp increased its holdings in shares of Arcus Biosciences by 34.8% in the 4th quarter. State Street Corp now owns 4,576,969 shares of the company's stock worth $109,069,000 after purchasing an additional 1,182,115 shares in the last quarter. Finally, Marshall Wace LLP bought a new stake in shares of Arcus Biosciences in the 4th quarter worth $80,731,000. 92.89% of the stock is owned by institutional investors.

Arcus Biosciences Company Profile

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel cancer immunotherapies. The company's research platform centers on modulating tumor microenvironments and immune checkpoints through both small-molecule and antibody-based candidates. Arcus aims to enhance antitumor immune responses by targeting pathways such as the adenosine axis and inhibitory receptors on immune cells.

The company's lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist being evaluated in combination with anti-PD-1 therapy, and domvanalimab, an anti-TIGIT monoclonal antibody.

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