Arcus Biosciences (NYSE:RCUS) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Arcus Biosciences from hold to sell, even as the broader analyst view remains Moderate Buy with a consensus target price of $33.11.
• The company posted weaker-than-expected Q1 results, reporting an EPS loss of ($1.02) versus estimates of ($0.92) and revenue of $17 million versus expected $29.49 million.
• Despite the weak earnings, several analysts remain constructive: Goldman Sachs and others raised price targets, while Arcus said its cash runway extends into the second half of 2028, easing some dilution concerns.

Arcus Biosciences (NYSE:RCUS - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

A number of other equities research analysts have also commented on RCUS. Citigroup upped their price target on shares of Arcus Biosciences from $44.00 to $45.00 and gave the company a "buy" rating in a report on Thursday, March 5th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Arcus Biosciences in a research report on Monday, April 20th. Wedbush raised their target price on shares of Arcus Biosciences from $37.00 to $41.00 and gave the stock an "outperform" rating in a research report on Thursday, April 2nd. The Goldman Sachs Group increased their price target on shares of Arcus Biosciences from $30.00 to $34.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Leerink Partners set a $47.00 price objective on shares of Arcus Biosciences in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $33.11.

Arcus Biosciences Stock Performance

Shares of RCUS stock opened at $25.37 on Friday. The stock has a market capitalization of $3.19 billion, a P/E ratio of -7.98 and a beta of 0.87. The company has a current ratio of 4.04, a quick ratio of 4.36 and a debt-to-equity ratio of 0.19. The firm's 50 day moving average is $22.93 and its 200 day moving average is $22.10. Arcus Biosciences has a 12 month low of $7.91 and a 12 month high of $28.72.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported ($1.02) EPS for the quarter, missing analysts' consensus estimates of ($0.92) by ($0.10). The business had revenue of $17.00 million for the quarter, compared to analysts' expectations of $29.49 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 company posted ($1.14) earnings per share. On average, sell-side analysts anticipate that Arcus Biosciences will post -3.55 earnings per share for the current year.

Institutional Trading of Arcus Biosciences

Several large investors have recently added to or reduced their stakes in RCUS. Wellington Management Group LLP boosted its position in shares of Arcus Biosciences by 309.4% in the fourth 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 during the period. Marshall Wace LLP purchased a new position in shares of Arcus Biosciences in the fourth quarter worth $80,731,000. Suvretta Capital Management LLC lifted its holdings in shares of Arcus Biosciences by 40.7% in the fourth quarter. Suvretta Capital Management LLC now owns 5,188,858 shares of the company's stock worth $123,650,000 after buying an additional 1,500,000 shares in the last quarter. Toronto Dominion Bank purchased a new position in shares of Arcus Biosciences in the fourth quarter worth $35,380,000. Finally, Vanguard Group Inc. lifted its holdings in shares of 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 buying an additional 1,333,421 shares in the last quarter. 92.89% of the stock is currently owned by institutional investors.

Arcus Biosciences News Summary

Here are the key news stories impacting Arcus Biosciences this week:

• Positive Sentiment: Goldman Sachs raised its price target on Arcus Biosciences to $34 from $30 and maintained a buy rating, signaling greater confidence in upside potential.
• Positive Sentiment: HC Wainwright increased several earnings estimates for 2026, 2027, 2029 and 2030, including a higher FY2030 profit forecast, while keeping a buy rating and $32 target.
• Positive Sentiment: Arcus said PEAK-1 enrollment should be complete by year-end 2026 and that its cash runway extends into the second half of 2028, which may ease dilution worries. Article Title
• Neutral Sentiment: HC Wainwright did trim some longer-term estimates, including FY2026, FY2027 and FY2028 EPS, showing that the path to profitability remains challenging despite the higher targets.
• Neutral Sentiment: The company remains deeply unprofitable, and recent earnings results were weaker than expected, so investors are still watching for clinical and operating progress.

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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