Traders Purchase Large Volume of Revolution Medicines Put Options (NASDAQ:RVMD)

Key Points

• Unusual options activity: Investors purchased 6,009 put options on Revolution Medicines, 120% above the average volume of 2,733 contracts, potentially signaling increased downside hedging or bearish sentiment.
• Mixed operating performance: Shares rose to $189.60, but the company reported a quarterly loss of $3.06 per share, missing analyst expectations of a $2.04 loss. Analysts expect a full-year loss of $8.94 per share.
• Analyst outlook remains broadly positive: Revolution Medicines has a consensus “Moderate Buy” rating and a $242.90 price target, although insiders sold approximately $59.4 million in stock over the last quarter.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) saw some unusual options trading on Thursday. Stock investors bought 6,009 put options on the company. This is an increase of 120% compared to the average volume of 2,733 put options.

Revolution Medicines Price Performance

Shares of NASDAQ:RVMD traded up $0.88 on Thursday, reaching $189.60. 441,089 shares of the company traded hands, compared to its average volume of 2,802,332. Revolution Medicines has a fifty-two week low of $56.66 and a fifty-two week high of $224.31. The company's 50 day moving average is $200.12 and its 200-day moving average is $155.08. The stock has a market capitalization of $40.64 billion, a PE ratio of -21.47 and a beta of 1.40. The company has a debt-to-equity ratio of 0.40, a current ratio of 11.38 and a quick ratio of 11.38.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($3.06) earnings per share for the quarter, missing analysts' consensus estimates of ($2.04) by ($1.02). During the same quarter last year, the business posted ($1.31) earnings per share. As a group, analysts anticipate that Revolution Medicines will post -8.94 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on RVMD shares. Royal Bank Of Canada upped their target price on Revolution Medicines from $259.00 to $260.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 14th. Morgan Stanley initiated coverage on Revolution Medicines in a research note on Thursday, September 10th. They issued an "overweight" rating and a $255.00 price objective on the stock. HC Wainwright upped their price objective on Revolution Medicines from $195.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, August 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Revolution Medicines in a research note on Thursday, October 15th. Finally, Guggenheim lifted their target price on Revolution Medicines from $240.00 to $275.00 and gave the stock a "buy" rating in a report on Friday, August 28th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $242.90.

Insider Buying and Selling at Revolution Medicines

In related news, insider Alan Sandler sold 6,309 shares of the company's stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $202.14, for a total value of $1,275,301.26. Following the completion of the sale, the insider owned 52,559 shares of the company's stock, valued at $10,624,276.26. This represents a 10.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Jack Anders sold 4,053 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $199.24, for a total transaction of $807,519.72. Following the completion of the transaction, the chief financial officer owned 119,216 shares of the company's stock, valued at $23,752,595.84. This represents a 3.29% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 290,991 shares of company stock valued at $59,422,765. 7.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Bluestem Financial Advisors LLC raised its holdings in shares of Revolution Medicines by 4.8% in the 3rd quarter. Bluestem Financial Advisors LLC now owns 1,256 shares of the company's stock worth $258,000 after buying an additional 58 shares in the last quarter. IFP Advisors Inc boosted its stake in Revolution Medicines by 8.7% in the 3rd quarter. IFP Advisors Inc now owns 810 shares of the company's stock valued at $166,000 after buying an additional 65 shares in the last quarter. TD Waterhouse Canada Inc. grew its position in Revolution Medicines by 37.0% in the third quarter. TD Waterhouse Canada Inc. now owns 370 shares of the company's stock valued at $76,000 after acquiring an additional 100 shares during the period. Meeder Advisory Services Inc. grew its position 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 acquiring an additional 120 shares during the period. Finally, Northwestern Mutual Wealth Management Co. raised its stake in Revolution Medicines by 147.7% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 218 shares of the company's stock worth $41,000 after acquiring an additional 130 shares in the last quarter. Hedge funds and other institutional investors own 94.34% of the company's stock.

Revolution Medicines Company Profile

Revolution Medicines, Inc is a clinical-stage biopharmaceutical company focused on developing targeted therapies for patients with RAS-mutant cancers. The company's research platform is designed to discover and develop medicines that inhibit RAS proteins, which play a central role in the growth and spread of many cancers and have historically been difficult to target.

Its investigational pipeline includes RAS(ON) inhibitors and other precision oncology candidates, including daraxonrasib (RMC-6236), a pan-RAS inhibitor being evaluated in multiple solid tumors, as well as programs directed at specific mutations such as KRAS G12C and KRAS G12D.

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