Arcus Biosciences (NYSE:RCUS) Shares Down 5.6% - Here's What Happened

Key Points

• Arcus Biosciences shares fell 5.6% to about $24.67, with trading volume 52% below the average session volume.
• Analysts remain broadly optimistic, with a “Moderate Buy” consensus from 13 analysts and an average price target of $38.30; recent targets range from $40 to $46.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.72 per share versus estimates of $0.89 and revenue of $41 million, though revenue declined 74.4% year over year and profitability remained deeply negative.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report)'s stock price dropped 5.6% during trading on Friday . The stock traded as low as $25.08 and last traded at $24.6730. 595,166 shares changed hands during trading, a decline of 52% from the average session volume of 1,237,036 shares. The stock had previously closed at $26.15.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Truist Financial reissued a "buy" rating and set a $40.00 price target (up from $35.00) on shares of Arcus Biosciences in a research report on Tuesday. HC Wainwright increased their price objective on shares of Arcus Biosciences from $32.00 to $45.00 and gave the company a "buy" rating in a research report on Monday, July 20th. The Goldman Sachs Group reiterated a "buy" rating and set a $42.00 price objective on shares of Arcus Biosciences in a research note on Friday, August 7th. Cantor Fitzgerald reissued an "overweight" rating on shares of Arcus Biosciences in a research report on Friday. Finally, Lifesci Capital assumed coverage on shares of Arcus Biosciences in a research note on Thursday, June 4th. They issued an "outperform" rating and a $46.00 target price for the company. Nine analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $38.30.

Arcus Biosciences Stock Performance

The company has a quick ratio of 3.82, a current ratio of 3.82 and a debt-to-equity ratio of 0.22. The company has a 50 day moving average of $29.04 and a 200 day moving average of $25.71. The firm has a market cap of $3.13 billion, a price-to-earnings ratio of -6.32 and a beta of 0.81.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.72) EPS for the quarter, beating analysts' consensus estimates of ($0.89) by $0.17. Arcus Biosciences had a negative return on equity of 89.54% and a negative net margin of 393.16%.The firm had revenue of $41.00 million during the quarter, compared to the consensus estimate of $21.98 million. The business's quarterly revenue was down 74.4% compared to the same quarter last year. As a group, equities research analysts expect that Arcus Biosciences, Inc. will post -3.6 EPS for the current fiscal year.

Insider Activity at Arcus Biosciences

In other news, CAO Alexander Azoy sold 2,827 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $30.00, for a total transaction of $84,810.00. Following the completion of the sale, the chief accounting officer owned 39,581 shares of the company's stock, valued at approximately $1,187,430. This trade represents a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Juan Jaen sold 48,502 shares of Arcus Biosciences stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $30.05, for a total transaction of $1,457,485.10. Following the completion of the sale, the president owned 842,307 shares of the company's stock, valued at approximately $25,311,325.35. This trade represents a 5.44% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 102,827 shares of company stock valued at $2,994,141. Company insiders own 7.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC acquired a new stake in shares of Arcus Biosciences in the 2nd quarter valued at about $30,000. Hantz Financial Services Inc. grew its stake in Arcus Biosciences by 121.9% in the fourth quarter. Hantz Financial Services Inc. now owns 1,604 shares of the company's stock worth $38,000 after purchasing an additional 881 shares in the last quarter. T. Rowe Price Investment Management Inc. bought a new stake in Arcus Biosciences in the fourth quarter valued at about $39,000. KBC Group NV bought a new stake in Arcus Biosciences in the first quarter valued at about $50,000. Finally, GAMMA Investing LLC raised its stake in Arcus Biosciences by 10.0% during the second quarter. GAMMA Investing LLC now owns 3,966 shares of the company's stock valued at $122,000 after buying an additional 359 shares in the last quarter. 92.89% of the stock is owned by institutional investors and hedge funds.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel cancer immunotherapies. The company's research platform centers on modulating tumor microenvironments and immune checkpoints through both small-molecule and antibody-based candidates. Arcus aims to enhance antitumor immune responses by targeting pathways such as the adenosine axis and inhibitory receptors on immune cells.

The company's lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist being evaluated in combination with anti-PD-1 therapy, and domvanalimab, an anti-TIGIT monoclonal antibody.

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.