Arcus Biosciences (NYSE:RCUS) Stock Price Down 8% - Here's Why

Key Points

• Arcus Biosciences shares fell 8% during trading, closing at $11.22, with a significant decline in trading volume.
• Despite the stock drop, Wall Street analysts have a consensus rating of "Moderate Buy" with a target price of $21.14.
• The company reported a substantial revenue increase of 310.3% year-over-year, with quarterly earnings better than expected.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) shares were down 8% during trading on Monday . The company traded as low as $11.28 and last traded at $11.22. Approximately 187,054 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 1,002,565 shares. The stock had previously closed at $12.19.

Wall Street Analysts Forecast Growth

RCUS has been the subject of several analyst reports. Wall Street Zen raised shares of Arcus Biosciences from a "strong sell" rating to a "hold" rating in a research note on Saturday, August 9th. Wells Fargo & Company reduced their target price on shares of Arcus Biosciences from $26.00 to $25.00 and set an "overweight" rating on the stock in a research report on Thursday, August 7th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $21.14.

Arcus Biosciences Stock Performance

The company has a quick ratio of 4.50, a current ratio of 4.50 and a debt-to-equity ratio of 0.18. The stock has a 50 day moving average of $9.71 and a 200 day moving average of $9.11. The company has a market capitalization of $1.21 billion, a price-to-earnings ratio of -3.56 and a beta of 0.82.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported ($1.11) earnings per share for the quarter, beating the consensus estimate of ($1.14) by $0.03. The firm had revenue of $160.00 million for the quarter, compared to analysts' expectations of $32.86 million. Arcus Biosciences had a negative return on equity of 55.96% and a negative net margin of 109.56%.The company's revenue was up 310.3% compared to the same quarter last year. During the same quarter last year, the firm posted ($1.02) EPS. As a group, analysts predict that Arcus Biosciences, Inc. will post -3.15 EPS for the current year.

Hedge Funds Weigh In On Arcus Biosciences

Several large investors have recently bought and sold shares of RCUS. Woodline Partners LP raised its holdings in Arcus Biosciences by 45.5% in the 1st quarter. Woodline Partners LP now owns 5,127,304 shares of the company's stock valued at $40,249,000 after acquiring an additional 1,603,367 shares during the last quarter. Gilead Sciences Inc. lifted its position in Arcus Biosciences by 4.5% during the 1st quarter. Gilead Sciences Inc. now owns 31,424,760 shares of the company's stock worth $246,684,000 after buying an additional 1,363,636 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Arcus Biosciences by 24.1% during the 1st quarter. Vanguard Group Inc. now owns 6,687,800 shares of the company's stock worth $52,499,000 after acquiring an additional 1,298,584 shares during the period. RA Capital Management L.P. acquired a new stake in shares of Arcus Biosciences during the first quarter worth $8,920,000. Finally, Wellington Management Group LLP bought a new position in shares of Arcus Biosciences during the first quarter valued at about $8,500,000. Hedge funds and other institutional investors own 92.89% of the company's stock.

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.

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