Arcus Biosciences (NYSE:RCUS) Shares Gap Down After Earnings Miss

Shares of Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $8.12, but opened at $7.44. Arcus Biosciences shares last traded at $7.47, with a volume of 384,839 shares trading hands.

The company reported ($1.14) earnings per share for the quarter, missing analysts' consensus estimates of ($1.02) by ($0.12). Arcus Biosciences had a negative return on equity of 45.59% and a negative net margin of 102.66%. The firm had revenue of $28.00 million during the quarter, compared to analysts' expectations of $38.61 million. During the same period last year, the company earned ($0.05) earnings per share. The business's revenue for the quarter was down 80.7% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on RCUS shares. Wells Fargo & Company dropped their price objective on shares of Arcus Biosciences from $29.00 to $26.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 7th. The Goldman Sachs Group lowered their price target on shares of Arcus Biosciences from $15.00 to $13.00 and set a "neutral" rating on the stock in a research report on Thursday. Wedbush reissued an "outperform" rating and issued a $33.00 price target on shares of Arcus Biosciences in a research note on Wednesday, May 7th. HC Wainwright raised shares of Arcus Biosciences from a "neutral" rating to a "buy" rating and upped their target price for the stock from $18.00 to $24.00 in a research note on Wednesday, February 26th. Finally, Morgan Stanley lowered their target price on shares of Arcus Biosciences from $24.00 to $22.00 and set an "overweight" rating for the company in a report on Friday. Two research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, Arcus Biosciences currently has a consensus rating of "Moderate Buy" and a consensus target price of $25.67.

Insider Buying and Selling at Arcus Biosciences

In related news, CEO Terry J. Rosen purchased 19,800 shares of the stock in a transaction that occurred on Thursday, February 27th. The stock was purchased at an average cost of $10.18 per share, for a total transaction of $201,564.00. Following the acquisition, the chief executive officer now owns 2,554,160 shares in the company, valued at approximately $26,001,348.80. This trade represents a 0.78% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Yasunori Kaneko acquired 20,000 shares of the firm's stock in a transaction on Thursday, February 27th. The stock was purchased at an average cost of $10.06 per share, with a total value of $201,200.00. Following the completion of the transaction, the director now owns 28,400 shares in the company, valued at $285,704. The trade was a 238.10% increase in their ownership of the stock. The disclosure for this purchase can be found here. 12.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Arcus Biosciences

Several hedge funds have recently modified their holdings of RCUS. Invesco Ltd. grew its holdings in shares of Arcus Biosciences by 24.5% in the 1st quarter. Invesco Ltd. now owns 254,024 shares of the company's stock worth $1,994,000 after acquiring an additional 50,037 shares during the last quarter. Swiss National Bank grew its holdings in shares of Arcus Biosciences by 35.9% during the first quarter. Swiss National Bank now owns 133,596 shares of the company's stock valued at $1,049,000 after buying an additional 35,300 shares in the last quarter. Maryland State Retirement & Pension System grew its holdings in shares of Arcus Biosciences by 10.9% during the first quarter. Maryland State Retirement & Pension System now owns 20,202 shares of the company's stock valued at $159,000 after buying an additional 1,986 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its position in Arcus Biosciences by 23.2% during the first quarter. Charles Schwab Investment Management Inc. now owns 714,002 shares of the company's stock valued at $5,605,000 after purchasing an additional 134,379 shares during the last quarter. Finally, Vanguard Group Inc. lifted its position in shares of Arcus Biosciences by 24.1% in the first quarter. Vanguard Group Inc. now owns 6,687,800 shares of the company's stock worth $52,499,000 after buying an additional 1,298,584 shares during the last quarter. 92.89% of the stock is currently owned by institutional investors and hedge funds.

Arcus Biosciences Stock Up 6.5%

The company has a current ratio of 5.24, a quick ratio of 5.24 and a debt-to-equity ratio of 0.08. The firm has a market cap of $933.38 million, a price-to-earnings ratio of -2.80 and a beta of 0.88. The firm has a 50-day moving average of $8.40 and a two-hundred day moving average of $12.35.

About Arcus Biosciences

Arcus Biosciences, Inc, a clinical-stage biopharmaceutical company, develops and commercializes cancer therapies in the United States. The company's pipeline products include Domvanalimab, an anti-TIGIT antibody, which is in Phase 2 and Phase 3 clinical trial; and AB308, an investigational anti-TIGIT monoclonal antibody, which is in Phase 1b clinical trial to study people with advanced solid and hematologic malignancies.