Arcus Biosciences (NYSE:RCUS) Trading Up 8.5% - Should You Buy?

Key Points

• Arcus Biosciences' stock price increased by 8.5% during mid-day trading, reaching $11.73, although trading volume was significantly lower than average.
• Analysts have mixed views, with Wells Fargo reducing their price target to $25.00, while Wedbush maintains an "outperform" rating with a target of $33.00; the average rating is currently a "Moderate Buy."
• The company reported revenue of $160 million for the last quarter, a substantial 310.3% increase year-over-year, while also beating EPS estimates with ($1.11) per share compared to expected ($1.14).

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report)'s stock price was up 8.5% during mid-day trading on Wednesday . The stock traded as high as $11.38 and last traded at $11.73. Approximately 53,329 shares changed hands during trading, a decline of 95% from the average daily volume of 999,856 shares. The stock had previously closed at $10.81.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on RCUS shares. Wells Fargo & Company cut their price target on Arcus Biosciences from $26.00 to $25.00 and set an "overweight" rating for the company in a research note on Thursday, August 7th. Morgan Stanley dropped their price objective on Arcus Biosciences from $24.00 to $22.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. The Goldman Sachs Group dropped their price objective on Arcus Biosciences from $15.00 to $13.00 and set a "neutral" rating for the company in a research report on Thursday, May 8th. Wall Street Zen upgraded Arcus Biosciences from a "strong sell" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, Wedbush reiterated an "outperform" rating and set a $33.00 price objective on shares of Arcus Biosciences in a research report on Wednesday, May 7th. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $21.14.

Arcus Biosciences Price Performance

The company's 50-day moving average is $9.50 and its 200-day moving average is $9.12. The company has a debt-to-equity ratio of 0.18, a current ratio of 4.50 and a quick ratio of 4.50. The firm has a market capitalization of $1.22 billion, a price-to-earnings ratio of -3.59 and a beta of 0.83.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported ($1.11) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($1.14) by $0.03. The business had revenue of $160.00 million during 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 for the quarter was up 310.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($1.02) EPS. On average, research analysts expect that Arcus Biosciences, Inc. will post -3.15 earnings per share for the current year.

Institutional Investors Weigh In On Arcus Biosciences

Institutional investors and hedge funds have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC raised its position in shares of Arcus Biosciences by 54.0% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 18,405 shares of the company's stock valued at $144,000 after acquiring an additional 6,453 shares in the last quarter. Yousif Capital Management LLC grew its stake in Arcus Biosciences by 18.6% during the 1st quarter. Yousif Capital Management LLC now owns 24,829 shares of the company's stock worth $195,000 after buying an additional 3,893 shares during the last quarter. Amalgamated Bank grew its stake in Arcus Biosciences by 18.4% during the 1st quarter. Amalgamated Bank now owns 18,797 shares of the company's stock worth $148,000 after buying an additional 2,922 shares during the last quarter. Raymond James Financial Inc. bought a new position in Arcus Biosciences during the 4th quarter worth $531,000. Finally, Rhumbline Advisers grew its stake in Arcus Biosciences by 14.8% during the 1st quarter. Rhumbline Advisers now owns 182,909 shares of the company's stock worth $1,436,000 after buying an additional 23,645 shares during the last quarter. 92.89% of the stock is owned by institutional investors and hedge funds.

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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