Revolution Medicines, Inc. (NASDAQ:RVMD) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts are broadly bullish: 24 firms give Revolution Medicines a consensus “Moderate Buy” rating, with an average 12-month price target of $263.15.
• Quarterly results topped estimates: Revenue was $197.56 million versus roughly $25.58 million expected, and the loss per share was narrower than forecast. The article attributes the revenue largely to Rasonque’s first five weeks on the U.S. market, when more than 5,000 patients were treated.
• Risks remain: Commentary flags the company’s roughly $40 billion valuation as reflecting high expectations, while insiders have sold shares in recent months.

Shares of Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty-four ratings firms that are presently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, one has given a hold recommendation, twenty-one have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $263.15.

A number of research analysts recently weighed in on RVMD shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Revolution Medicines in a report on Thursday, October 15th. Brookline Capital Markets initiated coverage on Revolution Medicines in a research report on Monday, September 28th. They issued a "buy" rating and a $318.00 price objective for the company. Wedbush raised their target price on Revolution Medicines from $201.00 to $225.00 and gave the company an "outperform" rating in a report on Thursday, August 27th. Oppenheimer raised their target price on Revolution Medicines from $230.00 to $260.00 and gave the company an "outperform" rating in a report on Thursday, August 27th. Finally, Truist Financial restated a "buy" rating and set a $261.00 target price (up from $241.00) on shares of Revolution Medicines in a research report on Thursday.

Revolution Medicines Stock Performance

NASDAQ RVMD opened at $192.28 on Friday. The company has a current ratio of 8.36, a quick ratio of 11.38 and a debt-to-equity ratio of 0.44. The business's 50 day moving average is $196.88 and its two-hundred day moving average is $157.56. Revolution Medicines has a 12-month low of $58.91 and a 12-month high of $224.31. The stock has a market capitalization of $41.21 billion, a price-to-earnings ratio of -21.11 and a beta of 1.44.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported ($1.90) EPS for the quarter, beating the consensus estimate of ($2.35) by $0.45. The business had revenue of $197.56 million during the quarter, compared to analyst estimates of $25.58 million. During the same period in the prior year, the business earned ($1.61) earnings per share. Research analysts expect that Revolution Medicines will post -7.88 EPS for the current year.

Trending Headlines about Revolution Medicines

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: Strong early Rasonque sales: Revolution Medicines reported $197.6 million in third-quarter revenue, beating estimates, with Rasonque generating that amount in just five weeks after its U.S. launch. The company said more than 5,000 patients had been treated. The quarterly loss per share also came in narrower than analysts expected. Zacks article on Q3 results and Rasonque uptake
• Positive Sentiment: Analyst targets moved higher: HC Wainwright raised its target to $350 and maintained a Buy rating. RBC lifted its target to $321 with an Outperform rating; Guggenheim, Truist and TD Cowen also raised targets and retained positive ratings. These revisions signal optimism about the drug’s commercial potential and pipeline. HC Wainwright recommendations RBC target increase
• Neutral Sentiment: Long-term opportunity, but expectations are high: Rasonque’s clinical results and potential expansion into other solid tumors support the pipeline outlook. However, commentary noted that RVMD’s roughly $40 billion valuation already reflects substantial expectations, making sustained launch growth and upcoming clinical results important. Seeking Alpha analysis of Q3 results
• Negative Sentiment: Some long-range forecasts were cut: Brookline Capital Markets lowered its FY2029 EPS estimate to $8.49 from $8.94 and its FY2030 estimate to $17.41 from $18.15, though it kept a Buy rating and a $318 target.

Insiders Place Their Bets

In related news, insider Mark A. Goldsmith sold 80,000 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $209.20, for a total transaction of $16,736,000.00. Following the sale, the insider owned 267,330 shares of the company's stock, valued at approximately $55,925,436. The trade was a 23.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Lorence H. Kim sold 56,000 shares of the company's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $203.24, for a total transaction of $11,381,440.00. Following the transaction, the director owned 17,090 shares in the company, valued at $3,473,371.60. The trade was a 76.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 290,991 shares of company stock worth $59,422,765. Insiders own 7.60% of the company's stock.

Institutional Investors Weigh In On Revolution Medicines

Several institutional investors have recently modified their holdings of the company. Bluestem Financial Advisors LLC grew its holdings in shares of Revolution Medicines by 4.8% during the 3rd quarter. Bluestem Financial Advisors LLC now owns 1,256 shares of the company's stock worth $258,000 after purchasing an additional 58 shares during the period. IFP Advisors Inc increased its position in Revolution Medicines by 8.7% during the 3rd quarter. IFP Advisors Inc now owns 810 shares of the company's stock worth $166,000 after purchasing an additional 65 shares in the last quarter. Brighton Jones LLC increased its position in Revolution Medicines by 2.9% during the 3rd quarter. Brighton Jones LLC now owns 3,565 shares of the company's stock worth $732,000 after purchasing an additional 99 shares in the last quarter. TD Waterhouse Canada Inc. increased its position in Revolution Medicines by 37.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 370 shares of the company's stock worth $76,000 after purchasing an additional 100 shares in the last quarter. Finally, Meeder Advisory Services Inc. raised its holdings in Revolution Medicines by 3.0% in the first quarter. Meeder Advisory Services Inc. now owns 4,126 shares of the company's stock valued at $401,000 after buying an additional 120 shares during the period. Hedge funds and other institutional investors own 94.34% of the company's stock.

Revolution Medicines Company Profile

Revolution Medicines, Inc is a biotechnology company focused on developing targeted therapies for patients with RAS-driven cancers. Founded in 2014 and headquartered in Redwood City, California, the company's research centers on RAS proteins, which can contribute to the growth of many cancers.

The company's pipeline includes drug candidates designed to inhibit mutant RAS proteins, including daraxonrasib (RMC-6236), which targets multiple RAS variants, and candidates directed at specific KRAS mutations.

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