Avoro Capital Advisors LLC Takes Position in Revolution Medicines, Inc. $RVMD

Key Points

• Avoro Capital Advisors disclosed a new fourth-quarter position in Revolution Medicines, buying 2.17 million shares worth about $172.8 million. The stake represents about 1.10% of the company and 1.7% of Avoro’s portfolio.
• Wall Street sentiment remains mostly positive, with multiple analysts raising price targets to as high as $205. Overall, the stock carries an average Buy rating and a consensus target price of $123.72.
• Revolution Medicines reported a wider-than-expected quarterly loss, posting EPS of -$2.29 versus estimates of -$1.83. The stock was trading near its 52-week high at $162.99, while insiders also sold shares in recent months.

Avoro Capital Advisors LLC purchased a new position in shares of Revolution Medicines, Inc. (NASDAQ:RVMD - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 2,170,000 shares of the company's stock, valued at approximately $172,840,000. Revolution Medicines comprises 1.7% of Avoro Capital Advisors LLC's holdings, making the stock its 18th biggest holding. Avoro Capital Advisors LLC owned about 1.10% of Revolution Medicines as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in RVMD. Indiana Trust & Investment Management Co purchased a new stake in Revolution Medicines in the 4th quarter valued at approximately $32,000. Global Retirement Partners LLC lifted its holdings in shares of Revolution Medicines by 1,002.8% in the fourth quarter. Global Retirement Partners LLC now owns 397 shares of the company's stock valued at $32,000 after purchasing an additional 361 shares in the last quarter. Torren Management LLC acquired a new stake in shares of Revolution Medicines in the fourth quarter valued at approximately $33,000. Arax Advisory Partners acquired a new stake in shares of Revolution Medicines in the fourth quarter valued at approximately $38,000. Finally, Darwin Wealth Management LLC purchased a new position in shares of Revolution Medicines during the 4th quarter worth approximately $40,000. Institutional investors and hedge funds own 94.34% of the company's stock.

Analysts Set New Price Targets

RVMD has been the subject of several analyst reports. Wedbush reiterated an "outperform" rating on shares of Revolution Medicines in a research note on Monday, June 1st. Weiss Ratings reissued a "sell (d-)" rating on shares of Revolution Medicines in a research report on Tuesday, April 21st. Piper Sandler upped their price target on shares of Revolution Medicines to $172.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Guggenheim increased their price target on shares of Revolution Medicines to $205.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Finally, Oppenheimer boosted their price objective on shares of Revolution Medicines from $165.00 to $195.00 and gave the company an "outperform" rating in a research note on Monday, June 1st. Three analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $123.72.

Revolution Medicines Price Performance

Shares of RVMD opened at $162.99 on Friday. Revolution Medicines, Inc. has a 52 week low of $34.00 and a 52 week high of $166.50. The company has a current ratio of 6.80, a quick ratio of 6.80 and a debt-to-equity ratio of 0.19. The firm has a market cap of $34.65 billion, a price-to-earnings ratio of -23.05 and a beta of 1.40. The stock has a 50 day moving average of $147.04 and a 200-day moving average of $113.34.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported ($2.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.83) by ($0.46). During the same quarter in the prior year, the company posted ($1.13) earnings per share. As a group, analysts forecast that Revolution Medicines, Inc. will post -7.94 EPS for the current year.

Insider Transactions at Revolution Medicines

In other Revolution Medicines news, insider Stephen Michael Kelsey sold 4,175 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $156.12, for a total transaction of $651,801.00. Following the sale, the insider owned 291,876 shares in the company, valued at approximately $45,567,681.12. The trade was a 1.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark A. Goldsmith sold 120,000 shares of the business's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $150.09, for a total transaction of $18,010,800.00. Following the sale, the insider directly owned 276,698 shares in the company, valued at approximately $41,529,602.82. This trade represents a 30.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 226,917 shares of company stock valued at $35,065,702 in the last three months. 7.60% of the stock is currently owned by insiders.

About Revolution Medicines

Revolution Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapies to treat RAS-dependent cancers and other diseases driven by the RAS/MAPK pathway. The company's research efforts target historically “undruggable” proteins, aiming to inhibit critical nodes in cell signaling that promote tumor growth and therapeutic resistance.

The lead pipeline includes RMC-4630, a SHP2 inhibitor; RMC-6291, a selective KRAS G12C inhibitor; and RMC-6236, a pan-RAS inhibitor designed to address multiple RAS mutations.

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