HC Wainwright Issues Pessimistic Estimate for RVMD Earnings

Key Points

• HC Wainwright cut its Q1 2026 EPS estimate for Revolution Medicines to ($1.82) (from ($1.54)) and now projects FY2026 EPS of ($7.93); the company recently missed a quarterly estimate, reporting ($1.86) versus consensus ($1.56).
• Despite a positive Phase III daraxonrasib readout that spurred a rally, Revolution priced upsized concurrent offerings (~$2.0B of common stock and convertible notes) which bolsters cash but raises dilution risk, and insiders have been selling shares recently.
• Shares trade near $152.54 with a market cap of $30.23 billion, while the sell‑side consensus remains a "Buy" with an average price target of $78.94, well below the current price.

Revolution Medicines, Inc. (NASDAQ:RVMD - Free Report) - Stock analysts at HC Wainwright dropped their Q1 2026 earnings per share estimates for shares of Revolution Medicines in a research note issued on Tuesday, April 14th. HC Wainwright analyst R. Burns now forecasts that the company will post earnings of ($1.82) per share for the quarter, down from their previous estimate of ($1.54). The consensus estimate for Revolution Medicines' current full-year earnings is ($3.49) per share. HC Wainwright also issued estimates for Revolution Medicines' Q2 2026 earnings at ($1.92) EPS, Q3 2026 earnings at ($2.02) EPS, Q4 2026 earnings at ($2.15) EPS and FY2026 earnings at ($7.93) EPS.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported ($1.86) EPS for the quarter, missing the consensus estimate of ($1.56) by ($0.30). During the same period in the previous year, the business earned ($1.12) earnings per share.

RVMD has been the topic of several other reports. UBS Group initiated coverage on Revolution Medicines in a report on Friday, February 27th. They set a "buy" rating on the stock. Benchmark reaffirmed an "overweight" rating on shares of Revolution Medicines in a report on Tuesday, February 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Revolution Medicines in a report on Thursday, January 22nd. Truist Financial raised Revolution Medicines to a "strong-buy" rating in a report on Wednesday, March 25th. Finally, Evercore reaffirmed an "outperform" rating on shares of Revolution Medicines in a report on Tuesday. Four analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $78.94.

Revolution Medicines Stock Up 3.8%

Shares of RVMD opened at $152.54 on Thursday. The company has a market capitalization of $30.23 billion, a PE ratio of -25.81 and a beta of 1.01. Revolution Medicines has a 12 month low of $34.00 and a 12 month high of $155.01. The stock's 50-day moving average price is $101.04 and its two-hundred day moving average price is $84.75. The company has a current ratio of 7.14, a quick ratio of 7.14 and a debt-to-equity ratio of 0.16.

Insider Buying and Selling at Revolution Medicines

In related news, insider Mark A. Goldsmith sold 30,000 shares of the company's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $101.22, for a total transaction of $3,036,600.00. Following the transaction, the insider directly owned 289,569 shares of the company's stock, valued at approximately $29,310,174.18. This represents a 9.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Stephen Michael Kelsey sold 4,302 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $99.48, for a total value of $427,962.96. Following the transaction, the insider directly owned 295,398 shares in the company, valued at approximately $29,386,193.04. This trade represents a 1.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 64,592 shares of company stock worth $6,488,732 in the last quarter. Company insiders own 8.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Global Retirement Partners LLC raised its stake in Revolution Medicines by 1,002.8% during the 4th quarter. Global Retirement Partners LLC now owns 397 shares of the company's stock worth $32,000 after buying an additional 361 shares during the period. Indiana Trust & Investment Management Co purchased a new stake in shares of Revolution Medicines in the fourth quarter worth approximately $32,000. Torren Management LLC purchased a new stake in shares of Revolution Medicines in the fourth quarter worth approximately $33,000. Arax Advisory Partners purchased a new stake in shares of Revolution Medicines in the fourth quarter worth approximately $38,000. Finally, Darwin Wealth Management LLC purchased a new stake in shares of Revolution Medicines in the fourth quarter worth approximately $40,000. 94.34% of the stock is owned by institutional investors and hedge funds.

More Revolution Medicines News

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

• Positive Sentiment: Phase III pancreatic-cancer win: daraxonrasib's positive Phase III data showing survival benefit in metastatic PDAC drove the stock rally and materially improves the company's regulatory and commercial outlook. RVMD Stock Rallies 41% on Positive Phase III Pancreatic Cancer Data
• Positive Sentiment: Analyst bullishness: Several outlets and analysts are calling a buy/strong-buy after the clinical readout, reinforcing demand and supporting higher price targets. This adds sell-side support for near-term momentum. Revolution Medicines: 'Strong Buy' On Daraxonrasib Win And Expansions Underway
• Positive Sentiment: Wedbush reaffirmation: Wedbush reiterated an "Outperform" rating, which can reinforce institutional confidence after the data release. Revolution Medicines' (RVMD) "Outperform" Rating Reaffirmed at Wedbush
• Neutral Sentiment: Major upsized financing priced: Revolution priced concurrent offerings of common stock and 0.50% convertible senior notes (common stock offering increased to ~10.56M shares at $142 each; $500M notes), which significantly bolsters cash for R&D and potential commercialization but also increases share count potential. Settlement dates are mid‑April. Revolution Medicines, Inc. Prices $2.0 Billion in Concurrent Upsized Offerings of Common Stock and Convertible Senior Notes
• Neutral Sentiment: Options and volume signal momentum: Unusual call buying and very high share volume indicate speculative and directional interest following the data — this can amplify intraday moves but increases volatility risk. (Internal/market data)
• Negative Sentiment: Dilution and conversion terms to watch: The convertible notes carry a conversion price materially above the offering price (initial conversion price ~ $198.80 per share) but the equity raise itself and heavy insider selling noted in recent filings represent dilution risk and potential pressure if insiders continue to sell into strength. Revolution Medicines Announces Pricing of $1.5 Billion Common Stock and Convertible Note Offerings

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.