Arcus Biosciences (NYSE:RCUS) Trading Up 12.7% - Here's Why

Key Points

• Arcus Biosciences shares jumped 12.7% mid‑day to about $27.63, trading as high as $27.13 on Wednesday, though volume was ~412,858 shares — roughly 66% below the average daily volume.
• Several analysts have raised ratings and targets recently (notably Wedbush to an outperform with a $41 target and Goldman Sachs upgrading to buy with a $28 target), leaving a MarketBeat consensus of a “Moderate Buy” and an average target of $30.60.
• Arcus beat quarterly estimates with EPS of ($0.89) vs. ($1.11) expected and revenue of $33.0M vs. $24.94M expected, but the company still shows a negative net margin and return on equity and analysts expect FY EPS around –3.72.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) shares were up 12.7% during mid-day trading on Wednesday . The stock traded as high as $27.13 and last traded at $27.6340. Approximately 412,858 shares were traded during trading, a decline of 66% from the average daily volume of 1,214,250 shares. The stock had previously closed at $24.52.

Analyst Ratings Changes

Several equities analysts recently issued reports on RCUS shares. Wedbush raised their price objective on Arcus Biosciences from $37.00 to $41.00 and gave the stock an "outperform" rating in a research note on Thursday, April 2nd. Weiss Ratings restated a "sell (d-)" rating on shares of Arcus Biosciences in a research note on Monday. The Goldman Sachs Group upgraded Arcus Biosciences from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $16.00 to $28.00 in a research note on Monday, January 12th. HC Wainwright restated a "buy" rating and set a $32.00 price objective on shares of Arcus Biosciences in a research note on Monday, March 2nd. Finally, Morgan Stanley reaffirmed an "equal weight" rating and issued a $20.00 target price (down from $23.00) on shares of Arcus Biosciences in a research report on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $30.60.

Arcus Biosciences Price Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 4.36 and a quick ratio of 4.36. The company has a 50-day simple moving average of $21.76 and a two-hundred day simple moving average of $21.41. The stock has a market capitalization of $3.45 billion, a price-to-earnings ratio of -8.33 and a beta of 0.86.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The company reported ($0.89) EPS for the quarter, beating analysts' consensus estimates of ($1.11) by $0.22. The company had revenue of $33.00 million for the quarter, compared to analyst estimates of $24.94 million. Arcus Biosciences had a negative return on equity of 65.77% and a negative net margin of 142.91%.The company's quarterly revenue was down 8.3% compared to the same quarter last year. During the same period last year, the company earned ($1.03) earnings per share. On average, equities research analysts predict that Arcus Biosciences, Inc. will post -3.72 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Louisiana State Employees Retirement System bought a new position in Arcus Biosciences during the first quarter valued at about $812,000. Rockefeller Capital Management L.P. boosted its stake in Arcus Biosciences by 217.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 12,224 shares of the company's stock valued at $291,000 after buying an additional 8,368 shares in the last quarter. T. Rowe Price Investment Management Inc. bought a new position in Arcus Biosciences during the fourth quarter valued at about $39,000. Invesco Ltd. boosted its stake in Arcus Biosciences by 41.7% during the fourth quarter. Invesco Ltd. now owns 414,365 shares of the company's stock valued at $9,874,000 after buying an additional 121,961 shares in the last quarter. Finally, State of Tennessee Department of Treasury boosted its position in shares of Arcus Biosciences by 34.2% in the 4th quarter. State of Tennessee Department of Treasury now owns 34,855 shares of the company's stock valued at $831,000 after purchasing an additional 8,886 shares during the period. Institutional investors own 92.89% of the company's stock.

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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