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

Key Points

• Arcus Biosciences shares opened lower, falling from a previous close of $22.14 to $21.26 before later trading at $23.9140 on volume of about 1.34 million shares.
• Analyst sentiment remains generally positive: 12 analysts rate the stock Buy, three Hold and one Sell, producing a consensus “Moderate Buy” rating and an average price target of $38.55.
• The company reported a quarterly loss of $0.72 per share, better than expected, while revenue of $41 million exceeded forecasts but declined 74.4% year over year; institutional investors own 92.89% of the shares.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) gapped down before the market opened on Tuesday. The stock had previously closed at $22.14, but opened at $21.26. Arcus Biosciences shares last traded at $23.9140, with a volume of 1,339,644 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms have commented on RCUS. HC Wainwright upped their price target on shares of Arcus Biosciences from $32.00 to $45.00 and gave the company a "buy" rating in a report on Monday, July 20th. TD Cowen assumed coverage on Arcus Biosciences in a research note on Wednesday, September 16th. They set a "buy" rating for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Arcus Biosciences in a report on Thursday. Morgan Stanley set a $23.00 price objective on Arcus Biosciences in a report on Monday, August 10th. Finally, Truist Financial restated a "buy" rating and issued a $40.00 target price (up from $35.00) on shares of Arcus Biosciences in a research note on Tuesday, September 8th. Twelve research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $38.55.

Arcus Biosciences Stock Performance

The company has a current ratio of 3.82, a quick ratio of 3.82 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $3.08 billion, a PE ratio of -6.19 and a beta of 0.94. The firm's fifty day moving average price is $26.83 and its two-hundred day moving average price is $26.24.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported ($0.72) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.89) by $0.17. Arcus Biosciences had a negative net margin of 393.16% and a negative return on equity of 89.54%. The firm had revenue of $41.00 million during the quarter, compared to analysts' expectations of $21.98 million. Arcus Biosciences's quarterly revenue was down 74.4% on a year-over-year basis. As a group, equities research analysts forecast that Arcus Biosciences, Inc. will post -3.52 EPS for the current year.

Insider Buying and Selling at Arcus Biosciences

In related news, CAO Alexander Azoy sold 2,827 shares of the company's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $30.00, for a total value of $84,810.00. Following the completion of the transaction, the chief accounting officer owned 39,581 shares of the company's stock, valued at approximately $1,187,430. This represents a 6.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through 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 Investors Weigh In On Arcus Biosciences

A number of institutional investors have recently added to or reduced their stakes in RCUS. BlackRock Inc. purchased a new stake in Arcus Biosciences during the 2nd quarter worth approximately $506,113,000. Parkman Healthcare Partners LLC acquired a new position in shares of Arcus Biosciences during the second quarter valued at approximately $28,341,000. Bank of America Corp DE purchased a new position in shares of Arcus Biosciences in the second quarter valued at approximately $25,759,000. Bank of New York Mellon Corp purchased a new position in shares of Arcus Biosciences in the second quarter valued at approximately $16,741,000. Finally, PDT Partners LLC purchased a new position in shares of Arcus Biosciences in the second quarter valued at approximately $9,976,000. Institutional investors and hedge funds own 92.89% of the company's stock.

About Arcus Biosciences

Arcus Biosciences, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for cancer and other serious diseases. The company uses its research platform to discover and advance medicines designed to target immune suppression and other biological mechanisms involved in tumor growth.

Arcus's oncology pipeline has included antibody-based and small-molecule therapies aimed at targets such as TIGIT, PD-1, CD73, and the adenosine A2A and A2B receptors. Its key development programs have included domvanalimab, zimberelimab, quemliclustat, and etrumadenant, which have been evaluated in clinical studies across several cancer types, including lung, gastrointestinal, and colorectal cancers.

Founded in 2015 and headquartered in Hayward, California, Arcus conducts research and clinical-development activities intended to support potential commercialization in international markets.

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