Arcus Biosciences (NYSE:RCUS) Trading Up 3.2% - Should You Buy?

Key Points

• Arcus Biosciences shares rose 3.2% to about $27.74, although trading volume was 96% below the average daily volume.
• Analyst sentiment is generally positive, with a “Moderate Buy” consensus from 14 analysts and an average price target of $38.30; targets range from $23 to $46.
• The company beat quarterly EPS and revenue expectations, but remains unprofitable, with a negative net margin and analysts forecasting a full-year loss of approximately $3.59 per share. Insiders have sold 71,396 shares worth about $2.1 million over the past three months.

Arcus Biosciences, Inc. (NYSE:RCUS - Get Free Report) shares traded up 3.2% during trading on Wednesday . The stock traded as high as $27.00 and last traded at $27.7420. 50,210 shares were traded during trading, a decline of 96% from the average session volume of 1,277,369 shares. The stock had previously closed at $26.87.

Wall Street Analysts Forecast Growth

RCUS has been the topic of a number of recent analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of Arcus Biosciences in a research report on Friday, July 17th. Lifesci Capital assumed coverage on Arcus Biosciences in a report on Thursday, June 4th. They set an "outperform" rating and a $46.00 price target for the company. Wedbush boosted their price objective on Arcus Biosciences from $41.00 to $43.00 and gave the company an "outperform" rating in a research note on Thursday, August 6th. Morgan Stanley set a $23.00 target price on Arcus Biosciences in a research report on Monday, August 10th. Finally, Wells Fargo & Company raised their target price on Arcus Biosciences from $23.00 to $26.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. Ten equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $38.30.

Arcus Biosciences Price Performance

The business has a 50-day moving average of $28.33 and a 200 day moving average of $25.95. 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 firm has a market capitalization of $3.34 billion, a P/E ratio of -6.71 and a beta of 0.81.

Arcus Biosciences (NYSE:RCUS - Get Free Report) last announced its quarterly earnings data 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 analysts' expectations of $21.98 million. The company's revenue for the quarter was down 74.4% compared to the same quarter last year. On average, sell-side analysts predict that Arcus Biosciences, Inc. will post -3.59 earnings per share for the current fiscal year.

Insider Buying and Selling at Arcus Biosciences

In other Arcus Biosciences news, President Juan C. Jaen sold 20,067 shares of the firm's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $28.62, for a total value of $574,317.54. Following the transaction, the president directly owned 822,240 shares of the company's stock, valued at approximately $23,532,508.80. This trade represents a 2.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Alexander Azoy sold 2,827 shares of Arcus Biosciences 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 $1,187,430. This represents a 6.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 71,396 shares of company stock valued at $2,116,613. 7.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Arcus Biosciences

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Integrated Wealth Concepts LLC acquired a new position in Arcus Biosciences during the 2nd quarter valued at about $30,000. Hantz Financial Services Inc. raised its stake in shares of 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 during the last quarter. KBC Group NV bought a new position in shares of Arcus Biosciences in the first quarter valued at approximately $50,000. Royal Bank of Canada lifted its holdings in shares of Arcus Biosciences by 14.6% in the first quarter. Royal Bank of Canada now owns 4,758 shares of the company's stock valued at $102,000 after purchasing an additional 607 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of 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 during the last quarter. 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 medicines for cancer and other serious diseases. The company combines antibody-based therapies, small-molecule drugs and combination treatment strategies designed to influence the immune system and other biological pathways involved in tumor growth.

Its oncology pipeline includes investigational therapies targeting pathways such as TIGIT, PD-1, CD73, adenosine receptors and HIF-2α. Key programs have included domvanalimab, an anti-TIGIT antibody; zimberelimab, an anti-PD-1 antibody; quemliclustat, a CD73 inhibitor; etrumadenant, an adenosine receptor antagonist; and AB521, an HIF-2α inhibitor.

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