Arcus Biosciences (NYSE:RCUS) Shares Down 6.1% - Here's What Happened

Key Points

• Arcus Biosciences shares fell 6.1% to about $22.85 in Tuesday trading, with volume down 65% from the stock’s average daily level.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $38.30, though individual targets range from $23 to $42.
• The company beat quarterly loss and revenue estimates, reporting an adjusted loss of $0.72 per share and $41 million in revenue, but revenue declined 74.4% year over year and profitability remained weak.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report)'s share price traded down 6.1% during trading on Tuesday. The stock traded as low as $22.83 and last traded at $22.8450. 450,804 shares changed hands during mid-day trading, a decline of 65% from the average daily volume of 1,287,246 shares. The stock had previously closed at $24.34.

Wall Street Analyst Weigh In

A number of analysts have weighed in on RCUS shares. Morgan Stanley set a $23.00 target price on Arcus Biosciences in a research note on Monday, August 10th. The Goldman Sachs Group reissued a "buy" rating and set a $42.00 target price on shares of Arcus Biosciences in a research note on Friday, August 7th. Wells Fargo & Company upped their price target on shares of Arcus Biosciences from $23.00 to $26.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Arcus Biosciences in a research note on Friday, July 17th. Finally, Wall Street Zen raised shares of Arcus Biosciences from a "sell" rating to a "hold" rating in a research note on Saturday, October 3rd. Ten research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Arcus Biosciences currently has a consensus rating of "Moderate Buy" and a consensus target price of $38.30.

Arcus Biosciences Stock Performance

The company has a market cap of $2.90 billion, a P/E ratio of -5.83 and a beta of 0.94. The firm has a 50 day moving average of $27.43 and a 200-day moving average of $26.19. The company has a quick ratio of 3.82, a current ratio of 3.82 and a debt-to-equity ratio of 0.22.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.72) earnings per share 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 business had revenue of $41.00 million during the quarter, compared to analyst estimates of $21.98 million. The firm's revenue for the quarter was down 74.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Arcus Biosciences, Inc. will post -3.53 EPS for the current fiscal year.

Insider Buying and Selling

In other Arcus Biosciences news, CAO Alexander Azoy sold 2,827 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $30.00, for a total transaction of $84,810.00. Following the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 7.60% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in RCUS. BlackRock Inc. purchased a new stake in shares of Arcus Biosciences during the second quarter valued at about $506,113,000. Parkman Healthcare Partners LLC acquired a new stake in Arcus Biosciences during the 2nd quarter worth about $28,341,000. Bank of America Corp DE purchased a new stake in Arcus Biosciences in the second quarter valued at approximately $25,759,000. Bank of New York Mellon Corp acquired a new stake in shares of Arcus Biosciences in the second quarter worth $16,741,000. Finally, PDT Partners LLC purchased a new position in shares of Arcus Biosciences during the 2nd quarter valued at about $9,976,000. 92.89% of the stock is owned by institutional investors.

About Arcus Biosciences

Arcus Biosciences, Inc is a biopharmaceutical company focused on discovering and developing medicines for the treatment of cancer. The company uses a proprietary research platform to develop small-molecule and antibody-based therapies designed to target biological mechanisms involved in tumor growth and immune-system regulation.

Arcus' oncology pipeline has included investigational therapies such as zimberelimab, an anti-PD-1 antibody; domvanalimab, an anti-TIGIT antibody; quemliclustat, a CD73 inhibitor; and etrumadenant, an adenosine receptor antagonist.

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