Arcus Biosciences (NYSE:RCUS) Sets New 12-Month High - Should You Buy?

Key Points

• Arcus Biosciences hit a new 52-week high, trading as high as $31.74 and ending the session up about 0.6%. The move came as shares continued to trade well above their 50-day and 200-day moving averages.
• Wall Street remains mostly constructive on the stock, with eight Buy ratings, three Holds, and one Sell. The consensus price target is $35.10, though some analysts have recently issued higher targets near $46 to $47.
• The company’s fundamentals remain mixed, as its latest quarterly results missed both earnings and revenue expectations and revenue fell 39.3% year over year. Insider selling has also been notable, even as institutional investors hold the vast majority of shares.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $31.74 and last traded at $31.3960, with a volume of 67431 shares traded. The stock had previously closed at $31.08.

Analysts Set New Price Targets

RCUS has been the topic of a number of recent research reports. Leerink Partners set a $47.00 target price on Arcus Biosciences in a research report on Monday, April 20th. Lifesci Capital began coverage on Arcus Biosciences in a research report on Thursday, June 4th. They set an "outperform" rating and a $46.00 price target for the company. Wall Street Zen cut shares of Arcus Biosciences from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. The Goldman Sachs Group lifted their price objective on shares of Arcus Biosciences from $30.00 to $34.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Arcus Biosciences in a research report on Monday, April 20th. Eight research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $35.10.

Arcus Biosciences Stock Up 0.6%

The firm has a market cap of $3.93 billion, a P/E ratio of -9.84 and a beta of 0.85. The company has a quick ratio of 4.04, a current ratio of 4.04 and a debt-to-equity ratio of 0.19. The firm has a fifty day moving average of $24.97 and a 200-day moving average of $23.03.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($1.02) earnings per share 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 firm's revenue for the quarter was down 39.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($1.14) earnings per share. On average, equities research analysts anticipate that Arcus Biosciences, Inc. will post -3.66 earnings per share for the current year.

Insider Activity

In other Arcus Biosciences news, President Juan C. Jaen sold 6,431 shares of the company's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $29.66, for a total transaction of $190,743.46. Following 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Alexander Azoy sold 2,562 shares of the company's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $25.77, for a total transaction of $66,022.74. Following the sale, the chief accounting officer directly owned 39,581 shares in the company, valued at $1,020,002.37. This trade represents a 6.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 41,756 shares of company stock valued at $1,142,517. 9.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Arcus Biosciences

Institutional investors and hedge funds have recently modified their holdings of the company. AQR Capital Management LLC grew its holdings in Arcus Biosciences by 253.9% during the first quarter. AQR Capital Management LLC now owns 90,954 shares of the company's stock worth $714,000 after purchasing an additional 65,254 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Arcus Biosciences by 10.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,572 shares of the company's stock valued at $297,000 after buying an additional 3,565 shares during the period. Millennium Management LLC raised its stake in Arcus Biosciences by 29.2% in the first quarter. Millennium Management LLC now owns 1,194,622 shares of the company's stock valued at $9,378,000 after buying an additional 270,253 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of Arcus Biosciences by 106.2% in the first quarter. Goldman Sachs Group Inc. now owns 914,208 shares of the company's stock valued at $7,177,000 after buying an additional 470,755 shares during the last quarter. Finally, Strs Ohio acquired a new stake in shares of Arcus Biosciences in the first quarter valued at approximately $67,000. 92.89% of the stock is owned by institutional investors.

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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