Public Employees Retirement System of Ohio Buys Shares of 77,402 Revolution Medicines, Inc. $RVMD

Key Points

• Ohio’s public employee pension fund bought 77,402 Revolution Medicines shares worth approximately $14.5 million in the second quarter. Institutional investors collectively own 94.34% of RVMD.
• Revolution Medicines received FDA approval for Rasonque, its first marketed product and the first broad RAS-targeted therapy for metastatic pancreatic cancer. Analysts subsequently raised price targets as high as $280, citing substantial commercial potential.
• Despite the approval, shares remain highly valued near their $224.31 52-week high, while the company remains unprofitable and recently missed quarterly EPS estimates. Insider selling and profit-taking are also adding pressure after the stock’s more-than-fivefold rally.

Public Employees Retirement System of Ohio bought a new position in Revolution Medicines, Inc. (NASDAQ:RVMD - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 77,402 shares of the company's stock, valued at approximately $14,496,000.

Other hedge funds have also modified their holdings of the company. Contravisory Investment Management Inc. bought a new stake in shares of Revolution Medicines in the 2nd quarter valued at about $32,000. ABS Investment Management LLC bought a new position in shares of Revolution Medicines during the 2nd quarter worth approximately $337,104,000. Johnson Financial Group Inc. purchased a new stake in Revolution Medicines during the second quarter valued at approximately $37,000. Northwestern Mutual Wealth Management Co. purchased a new stake in Revolution Medicines during the second quarter valued at approximately $41,000. Finally, Silvant Capital Management LLC acquired a new stake in shares of Revolution Medicines in the 2nd quarter worth $41,000. 94.34% of the stock is owned by hedge funds and other institutional investors.

Revolution Medicines News Summary

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

Analyst Ratings Changes

Several equities research analysts have weighed in on RVMD shares. HC Wainwright raised their price target on Revolution Medicines from $195.00 to $280.00 and gave the stock a "buy" rating in a report on Thursday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Revolution Medicines in a research report on Friday, July 17th. Royal Bank Of Canada lifted their target price on shares of Revolution Medicines from $203.00 to $251.00 and gave the stock an "outperform" rating in a research note on Thursday. TD Cowen raised shares of Revolution Medicines to a "strong-buy" rating in a research report on Monday, August 24th. Finally, Oppenheimer upped their price target on shares of Revolution Medicines from $230.00 to $260.00 and gave the company an "outperform" rating in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $198.89.

Revolution Medicines Price Performance

Revolution Medicines stock opened at $207.88 on Monday. The business's 50-day simple moving average is $193.33 and its two-hundred day simple moving average is $148.95. The company has a debt-to-equity ratio of 0.40, a quick ratio of 11.38 and a current ratio of 11.38. 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.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($3.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.04) by ($1.02). During the same period in the previous year, the firm posted ($1.31) earnings per share. Equities analysts anticipate that Revolution Medicines, Inc. will post -8.85 EPS for the current year.

Insider Buying and Selling

In other news, CFO Jack Anders sold 20,000 shares of the company's stock in a transaction 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 sale, the chief financial officer directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark A. Goldsmith sold 80,000 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $209.20, for a total transaction of $16,736,000.00. Following the completion of the sale, the insider owned 267,330 shares in the company, valued at $55,925,436. The trade was a 23.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 212,497 shares of company stock worth $38,206,486 in the last quarter. 7.60% of the stock is currently owned by corporate insiders.

Revolution Medicines 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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