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

Key Points

• Arcus Biosciences received an average analyst rating of “Moderate Buy” from 12 brokerages, with an average 12-month price target of $35.10.
• The company’s latest earnings fell short of expectations, reporting EPS of -$1.02 versus estimates of -$0.92 and revenue of $17.0 million versus the expected $29.48 million.
• Insider activity has included recent stock sales by the president and CFO, while institutional investors remain dominant, holding 92.89% of the company’s shares.

Shares of Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twelve research firms that are presently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and eight have given a buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $35.10.

RCUS has been the topic of several analyst reports. Wedbush raised their price target on shares of Arcus Biosciences from $37.00 to $41.00 and gave the company an "outperform" rating in a research note on Thursday, April 2nd. Leerink Partners set a $47.00 price target on Arcus Biosciences in a research note on Monday, April 20th. Wall Street Zen lowered Arcus Biosciences from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Arcus Biosciences in a report on Monday, April 20th. Finally, Morgan Stanley increased their target price on shares of Arcus Biosciences from $20.00 to $22.00 and gave the company an "equal weight" rating in a research report on Monday, May 11th.

Insiders Place Their Bets

In other news, President Juan C. Jaen sold 6,431 shares of the company's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $29.66, for a total value of $190,743.46. Following the completion of the sale, the president directly owned 890,809 shares of the company's stock, valued at approximately $26,421,394.94. This represents a 0.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Robert C. Goeltz II sold 7,763 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $25.63, for a total transaction of $198,965.69. Following the completion of the transaction, the chief financial officer owned 84,161 shares of the company's stock, valued at $2,157,046.43. This trade represents a 8.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 41,756 shares of company stock worth $1,142,517. 9.60% of the stock is owned by corporate insiders.

Institutional Trading of Arcus Biosciences

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Hantz Financial Services Inc. boosted its stake in Arcus Biosciences by 121.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,604 shares of the company's stock valued at $38,000 after buying an additional 881 shares in the last quarter. T. Rowe Price Investment Management Inc. acquired a new position in Arcus Biosciences during the fourth quarter worth about $39,000. KBC Group NV bought a new stake in Arcus Biosciences in the first quarter worth about $50,000. Strs Ohio bought a new stake in Arcus Biosciences in the first quarter worth about $67,000. Finally, Tower Research Capital LLC TRC lifted its holdings in Arcus Biosciences by 184.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 8,449 shares of the company's stock valued at $69,000 after acquiring an additional 5,476 shares during the last quarter. Institutional investors own 92.89% of the company's stock.

Arcus Biosciences Price Performance

Shares of NYSE RCUS opened at $30.42 on Friday. Arcus Biosciences has a 1-year low of $8.03 and a 1-year high of $31.74. The company has a debt-to-equity ratio of 0.19, a current ratio of 4.04 and a quick ratio of 4.04. The business's fifty day moving average price is $25.34 and its two-hundred day moving average price is $23.16. The firm has a market capitalization of $3.83 billion, a PE ratio of -9.57 and a beta of 0.80.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported ($1.02) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.92) by ($0.10). The company had revenue of $17.00 million during the quarter, compared to the consensus estimate of $29.48 million. Arcus Biosciences had a negative net margin of 156.36% and a negative return on equity of 68.97%. The business's quarterly revenue was down 39.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($1.14) earnings per share. On average, research analysts expect that Arcus Biosciences will post -3.66 EPS for the current year.

About Arcus Biosciences

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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