Arcus Biosciences (NYSE:RCUS) Shares Gap Down Following Weak Earnings

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report)'s stock price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. 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 changing hands.

The company reported ($1.14) earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $28.00 million for the quarter, compared to analyst estimates of $38.61 million. During the same quarter last year, the company posted ($0.05) EPS. Arcus Biosciences's quarterly revenue was down 80.7% on a year-over-year basis.

Analyst Ratings Changes

RCUS has been the topic of a number of recent research reports. Wells Fargo & Company reduced their target price on Arcus Biosciences from $29.00 to $26.00 and set an "overweight" rating on the stock in a research note on Wednesday. HC Wainwright upgraded shares of Arcus Biosciences from a "neutral" rating to a "buy" rating and lifted their target price for the company from $18.00 to $24.00 in a report on Wednesday, February 26th. Morgan Stanley lowered their price target on Arcus Biosciences from $36.00 to $25.00 and set an "overweight" rating for the company in a report on Tuesday, February 18th. Barclays reduced their price objective on Arcus Biosciences from $29.00 to $14.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 23rd. Finally, Bank of America lowered their target price on Arcus Biosciences from $22.00 to $17.00 and set a "neutral" rating for the company in a research note on Wednesday, February 19th. One investment analyst has rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $28.00.

Insider Transactions at Arcus Biosciences

In related news, Director Yasunori Kaneko bought 20,000 shares of the stock in a transaction on Thursday, February 27th. The shares were purchased at an average price of $10.06 per share, with a total value of $201,200.00. Following the purchase, the director now owns 28,400 shares in the company, valued at approximately $285,704. This represents a 238.10 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Terry J. Rosen purchased 19,800 shares of Arcus Biosciences stock in a transaction dated Thursday, February 27th. The stock was bought at an average cost of $10.18 per share, with a total value of $201,564.00. Following the completion of the purchase, 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 position. The disclosure for this purchase can be found here. Insiders own 12.30% of the company's stock.

Institutional Investors Weigh In On Arcus Biosciences

A number of institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Arcus Biosciences by 2.5% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,007 shares of the company's stock valued at $506,000 after buying an additional 833 shares in the last quarter. JPMorgan Chase & Co. boosted its position in shares of Arcus Biosciences by 2.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 43,685 shares of the company's stock valued at $668,000 after purchasing an additional 1,117 shares in the last quarter. R Squared Ltd acquired a new position in shares of Arcus Biosciences in the 4th quarter worth approximately $26,000. Teacher Retirement System of Texas grew its stake in shares of Arcus Biosciences by 19.2% in the 4th quarter. Teacher Retirement System of Texas now owns 14,952 shares of the company's stock worth $223,000 after purchasing an additional 2,410 shares during the last quarter. Finally, Handelsbanken Fonder AB lifted its stake in Arcus Biosciences by 11.2% during the fourth quarter. Handelsbanken Fonder AB now owns 24,800 shares of the company's stock valued at $369,000 after purchasing an additional 2,500 shares during the last quarter. 92.89% of the stock is currently owned by institutional investors and hedge funds.

Arcus Biosciences Stock Down 6.6 %

The company has a debt-to-equity ratio of 0.08, a current ratio of 5.24 and a quick ratio of 5.24. The stock has a market capitalization of $802.93 million, a P/E ratio of -2.38 and a beta of 0.88. The stock's fifty day moving average is $8.52 and its two-hundred day moving average is $12.58.

Arcus Biosciences Company Profile

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.

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