Revolution Medicines (NASDAQ:RVMD) Shares Climb 4.4% on Analyst Upgrade

Key Points

• Revolution Medicines shares rose 4.4% after Goldman Sachs upgraded the stock to a strong-buy rating, reaching approximately $208.72 in mid-day trading.
• Analyst sentiment is broadly positive, with a consensus “Buy” rating and an average price target of $230.15; several firms recently raised their targets to between $239 and $275.
• Despite strong institutional ownership of 94.34%, insiders sold about $59.2 million of stock over the past 90 days. The clinical-stage biotech also reported a quarterly EPS loss of $3.06, missing estimates by $1.02.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) was up 4.4% during mid-day trading on Friday after The Goldman Sachs Group upgraded the stock to a strong-buy rating. The company traded as high as $206.86 and last traded at $208.7220. 781,775 shares were traded during mid-day trading, a decline of 73% from the average daily volume of 2,907,918 shares. The stock had previously closed at $199.86.

RVMD has been the subject of several other research reports. Sanford C. Bernstein upped their target price on shares of Revolution Medicines from $151.00 to $179.00 and gave the stock a "market perform" rating in a report on Friday, August 21st. Oppenheimer increased their target price on Revolution Medicines from $230.00 to $260.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Royal Bank Of Canada upped their price target on Revolution Medicines from $203.00 to $251.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Truist Financial boosted their target price on shares of Revolution Medicines from $231.00 to $239.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. Finally, Needham & Company LLC raised their target price on shares of Revolution Medicines from $240.00 to $275.00 and gave the company a "buy" rating in a research note on Monday, August 31st. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $230.15.

Insider Transactions at Revolution Medicines

In related news, Director Elizabeth Anderson sold 10,143 shares of the business's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $193.04, for a total value of $1,958,004.72. Following the sale, the director owned 4,333 shares in the company, valued at approximately $836,442.32. The trade was a 70.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Lorence Kim sold 56,000 shares of the company's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $203.24, for a total transaction of $11,381,440.00. Following the sale, the director directly owned 17,090 shares in the company, valued at approximately $3,473,371.60. The trade was a 76.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 290,262 shares of company stock valued at $59,196,448 in the last 90 days. Company insiders own 7.60% of the company's stock.

Institutional Trading of Revolution Medicines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RVMD. Contravisory Investment Management Inc. purchased a new stake in shares of Revolution Medicines in the second quarter worth approximately $32,000. Johnson Financial Group Inc. purchased a new stake in Revolution Medicines in the 2nd quarter valued at about $37,000. Silvant Capital Management LLC purchased a new stake in shares of Revolution Medicines in the 2nd quarter worth $41,000. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Revolution Medicines in the 2nd quarter worth approximately $41,000. Finally, Allworth Financial LP raised its position in shares of Revolution Medicines by 57.2% in the 4th quarter. Allworth Financial LP now owns 577 shares of the company's stock worth $46,000 after acquiring an additional 210 shares in the last quarter. 94.34% of the stock is owned by hedge funds and other institutional investors.

Revolution Medicines Trading Up 4.4%

The firm has a market capitalization of $44.74 billion, a PE ratio of -23.61 and a beta of 1.40. The company has a quick ratio of 11.38, a current ratio of 11.38 and a debt-to-equity ratio of 0.40. The company's 50-day simple moving average is $200.44 and its 200 day simple moving average is $162.63.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($3.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.04) by ($1.02). During the same period last year, the business earned ($1.31) earnings per share. As a group, sell-side analysts expect that Revolution Medicines, Inc. will post -8.87 EPS for the current year.

About Revolution Medicines

Revolution Medicines, Inc is a clinical-stage biotechnology company focused on developing targeted treatments for cancer. The company specializes in therapies designed to inhibit oncogenic RAS signaling, a pathway involved in many difficult-to-treat cancers, including tumors driven by KRAS mutations.

Its pipeline includes investigational RAS(ON) inhibitors intended to target active forms of RAS proteins. Key programs have included daraxonrasib (RMC-6236), an oral inhibitor being studied in cancers with a range of RAS mutations, as well as mutation-selective programs such as RMC-9805 for KRAS G12D and RMC-6291 for KRAS G12C.

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