Empowered Funds LLC Takes Position in Revolution Medicines, Inc. $RVMD

Key Points

• Empowered Funds LLC acquired 52,086 Revolution Medicines shares in the second quarter, valued at approximately $9.8 million. Institutional investors collectively own 94.34% of the company.
• Revolution Medicines reported a quarterly loss of $3.06 per share, missing the $2.04 consensus estimate, and analysts expect a full-year loss of $8.85 per share.
• The company’s first FDA-approved product, Rasonque, created a significant commercial opportunity and prompted several analysts to raise price targets, although shares near their record high may already reflect much of the positive news and remain exposed to profit-taking.

Empowered Funds LLC purchased a new position in shares of Revolution Medicines, Inc. (NASDAQ:RVMD - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 52,086 shares of the company's stock, valued at approximately $9,755,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Janus Henderson Group PLC boosted its stake in Revolution Medicines by 8.3% during the 4th quarter. Janus Henderson Group PLC now owns 12,303,502 shares of the company's stock valued at $980,036,000 after acquiring an additional 947,448 shares during the last quarter. Nextech Invest Ltd. increased its position in shares of Revolution Medicines by 20.7% in the 4th quarter. Nextech Invest Ltd. now owns 7,601,087 shares of the company's stock worth $332,472,000 after purchasing an additional 1,304,347 shares during the last quarter. Paradigm Biocapital Advisors LP raised its stake in shares of Revolution Medicines by 6.8% in the 4th quarter. Paradigm Biocapital Advisors LP now owns 6,644,403 shares of the company's stock valued at $529,227,000 after purchasing an additional 421,112 shares in the last quarter. Bellevue Group AG raised its stake in shares of Revolution Medicines by 21.7% in the 3rd quarter. Bellevue Group AG now owns 5,573,838 shares of the company's stock valued at $260,298,000 after purchasing an additional 994,538 shares in the last quarter. Finally, Deerfield Management Company L.P. lifted its position in shares of Revolution Medicines by 7.9% during the third quarter. Deerfield Management Company L.P. now owns 3,650,342 shares of the company's stock worth $170,471,000 after purchasing an additional 266,270 shares during the last quarter. Institutional investors own 94.34% of the company's stock.

Revolution Medicines Price Performance

Shares of NASDAQ:RVMD opened at $207.88 on Friday. The company has a market cap of $44.56 billion, a PE ratio of -23.57 and a beta of 1.39. Revolution Medicines, Inc. has a fifty-two week low of $37.56 and a fifty-two week high of $224.31. The firm has a 50-day simple moving average of $193.33 and a 200 day simple moving average of $148.59. The company has a quick ratio of 11.38, a current ratio of 11.38 and a debt-to-equity ratio of 0.40.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($3.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.04) by ($1.02). During the same period in the previous year, the company earned ($1.31) EPS. On average, sell-side analysts anticipate that Revolution Medicines, Inc. will post -8.85 EPS for the current year.

Key Stories Impacting Revolution Medicines

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

• Positive Sentiment: FDA approval creates a major commercial opportunity. Rasonque became the first broad RAS-targeted therapy approved for metastatic pancreatic cancer and Revolution Medicines’ first marketed product. The approval arrived roughly five weeks after filing through the FDA’s national priority voucher program. In the pivotal RASolute 302 trial, the treatment reportedly nearly doubled survival outcomes, supporting expectations for rapid adoption. RVMD Secures FDA Win
• Positive Sentiment: Analysts raised their valuations. Guggenheim increased its price target to $275 from $240 with a Buy rating, while HC Wainwright maintained a Buy rating and a $280 target. Analysts cited potential peak sales of approximately $11.5 billion, and RBC viewed the planned launch as comparatively rapid. Revolution Medicines FDA Approval and Peak Sales
• Neutral Sentiment: Much of the good news may already be reflected in the stock. RVMD recently reached an all-time high above $224 and its market capitalization approached $47 billion. Commentary suggests investors had already priced in a successful approval, limiting additional upside from the announcement. Revolution Medicines Valuation Analysis
• Negative Sentiment: Profit-taking and risk concerns are weighing on shares. Despite the “transformative” approval, the stock is facing a weekly decline as investors lock in gains after a more-than-fivefold rally. Revolution Medicines remains unprofitable, with analysts forecasting negative EPS for 2027, although losses are expected to narrow to $6.86 per share for the full year. Revolution Medicines Shares Despite FDA Approval

Analysts Set New Price Targets

A number of equities analysts recently commented on RVMD shares. Piper Sandler lifted their price target on Revolution Medicines to $172.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. UBS Group upped their price objective on Revolution Medicines from $220.00 to $265.00 and gave the company a "buy" rating in a research note on Friday. Oppenheimer increased their target price on Revolution Medicines from $230.00 to $260.00 and gave the stock an "outperform" rating in a report on Thursday. TD Cowen upgraded Revolution Medicines to a "strong-buy" rating in a research report on Monday, August 24th. Finally, Needham & Company LLC boosted their price target on Revolution Medicines from $236.00 to $240.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $198.89.

Insider Buying and Selling at Revolution Medicines

In related news, Director Sushil Patel sold 5,580 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $187.99, for a total value of $1,048,984.20. Following the sale, the director owned 21,656 shares of the company's stock, valued at approximately $4,071,111.44. This trade represents a 20.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Jack Anders sold 20,000 shares of the business's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $168.33, for a total value of $3,366,600.00. Following the transaction, the chief financial officer owned 123,269 shares of the company's stock, valued at $20,749,870.77. This represents a 13.96% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 212,497 shares of company stock worth $38,206,486. Corporate insiders own 7.60% of the company's stock.

Revolution Medicines Company Profile

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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