Arcus Biosciences (NYSE:RCUS) Trading Down 6% - Should You Sell?

Key Points

• Arcus Biosciences' stock fell 6% during mid-day trading, reaching a low of $15.54, with a significant decline in trading volume.
• Analysts have mixed opinions on the stock, with seven analysts rating it as a Buy, while two rated it Hold, and one rated it Sell.
• Despite a 310.3% increase in quarterly revenue compared to last year, the company posted a negative EPS of ($1.11), exceeding estimates slightly.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) fell 6% during mid-day trading on Tuesday . The stock traded as low as $15.54 and last traded at $15.65. 358,245 shares were traded during mid-day trading, a decline of 64% from the average session volume of 1,005,005 shares. The stock had previously closed at $16.64.

Analyst Ratings Changes

Several research firms recently issued reports on RCUS. Wells Fargo & Company reduced their price target on shares of Arcus Biosciences from $26.00 to $25.00 and set an "overweight" rating for the company in a research report on Thursday, August 7th. Wall Street Zen upgraded Arcus Biosciences from a "strong sell" rating to a "hold" rating in a research note on Saturday, August 9th. Citigroup raised their price objective on Arcus Biosciences from $47.00 to $54.00 and gave the company a "buy" rating in a research note on Monday. Truist Financial restated a "buy" rating and set a $39.00 price objective (up from $32.00) on shares of Arcus Biosciences in a research note on Tuesday, October 7th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Arcus Biosciences in a research note on Wednesday, October 8th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $26.78.

Arcus Biosciences Stock Down 5.3%

The company has a market capitalization of $1.68 billion, a P/E ratio of -4.97 and a beta of 0.77. The company has a debt-to-equity ratio of 0.18, a quick ratio of 4.50 and a current ratio of 4.50. The stock has a 50 day moving average price of $11.70 and a 200 day moving average price of $9.74.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported ($1.11) EPS for the quarter, topping analysts' consensus estimates of ($1.14) by $0.03. The company 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 business's revenue for the quarter was up 310.3% compared to the same quarter last year. During the same period in the previous year, the business posted ($1.02) EPS. Equities research analysts forecast that Arcus Biosciences, Inc. will post -3.15 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, COO Jennifer Jarrett sold 37,792 shares of Arcus Biosciences stock in a transaction on Wednesday, October 8th. The stock was sold at an average price of $15.05, for a total transaction of $568,769.60. Following the sale, the chief operating officer directly owned 214,232 shares in the company, valued at $3,224,191.60. The trade was a 15.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Alexander Azoy sold 2,831 shares of Arcus Biosciences stock in a transaction dated Monday, September 29th. The stock was sold at an average price of $13.00, for a total value of $36,803.00. Following the completion of the sale, the chief accounting officer directly owned 27,363 shares of the company's stock, valued at approximately $355,719. This trade represents a 9.38% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 54,702 shares of company stock worth $806,081 over the last quarter. Company insiders own 9.60% of the company's stock.

Institutional Investors Weigh In On Arcus Biosciences

Large investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC grew its holdings in Arcus Biosciences by 59.1% during the 3rd quarter. GAMMA Investing LLC now owns 2,748 shares of the company's stock valued at $37,000 after buying an additional 1,021 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its holdings in shares of Arcus Biosciences by 8.0% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 17,398 shares of the company's stock worth $142,000 after purchasing an additional 1,294 shares in the last quarter. Parallel Advisors LLC grew its holdings in shares of Arcus Biosciences by 1.6% during the second quarter. Parallel Advisors LLC now owns 88,007 shares of the company's stock worth $716,000 after purchasing an additional 1,422 shares in the last quarter. Ameritas Investment Partners Inc. grew its holdings in shares of Arcus Biosciences by 34.3% during the second quarter. Ameritas Investment Partners Inc. now owns 7,038 shares of the company's stock worth $57,000 after purchasing an additional 1,796 shares in the last quarter. Finally, 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 worth $159,000 after purchasing an additional 1,986 shares in the last quarter. 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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