Revolution Medicines (NASDAQ:RVMD) Stock Falls 4.3% - Here's What Happened

Key Points

• Revolution Medicines shares fell 4.3% to about $198.70 in thin midday trading, with volume down 97% from the average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $234.33; recent targets range from $220 to $280.
• The company reported a quarterly loss of $3.06 per share, missing estimates by $1.02, while insiders sold approximately $59.4 million of stock over the past three months.

Shares of Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) were down 4.3% on Tuesday. The company traded as low as $203.50 and last traded at $198.7030. 72,109 shares were traded during mid-day trading, a decline of 97% from the average daily volume of 2,866,343 shares. The stock had previously closed at $207.68.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Stifel Nicolaus boosted their price objective on shares of Revolution Medicines from $215.00 to $230.00 and gave the stock a "buy" rating in a research report on Wednesday, September 9th. HC Wainwright lifted their target price on shares of Revolution Medicines from $195.00 to $280.00 and gave the stock a "buy" rating in a research report on Thursday, August 27th. Wolfe Research reiterated an "outperform" rating and issued a $220.00 price target on shares of Revolution Medicines in a research report on Monday, August 10th. The Goldman Sachs Group initiated coverage on shares of Revolution Medicines in a research note on Thursday, September 24th. They set a "buy" rating and a $267.00 price objective for the company. Finally, TD Cowen upgraded Revolution Medicines to a "strong-buy" rating in a research report on Monday, August 24th. Two analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Revolution Medicines presently has a consensus rating of "Moderate Buy" and an average price target of $234.33.

Revolution Medicines Trading Down 3.4%

The firm's 50 day simple moving average is $203.20 and its 200-day simple moving average is $167.91. The company has a market capitalization of $43.02 billion, a PE ratio of -22.74 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.

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

Insider Activity

In other news, Director Lorence H. Kim sold 56,000 shares of the business'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 completion of the transaction, the director owned 17,090 shares of the company's stock, valued at approximately $3,473,371.60. The trade was a 76.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Alan B. Sandler sold 6,309 shares of the company's stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $202.14, for a total transaction of $1,275,301.26. Following the completion of the transaction, the insider owned 52,559 shares of the company's stock, valued at approximately $10,624,276.26. This trade represents a 10.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 290,991 shares of company stock valued at $59,422,765 over the last three months. 7.60% of the stock is currently owned by company insiders.

Institutional Trading of Revolution Medicines

A number of hedge funds and other institutional investors have recently modified their holdings of RVMD. Meeder Advisory Services Inc. lifted its stake in shares of Revolution Medicines by 3.0% during the first quarter. Meeder Advisory Services Inc. now owns 4,126 shares of the company's stock valued at $401,000 after acquiring an additional 120 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in Revolution Medicines by 147.7% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 218 shares of the company's stock worth $41,000 after purchasing an additional 130 shares during the period. Burkett Financial Services LLC bought a new stake in Revolution Medicines during the 3rd quarter worth about $27,000. Contravisory Investment Management Inc. bought a new stake in Revolution Medicines during the 2nd quarter worth about $32,000. Finally, ABS Investment Management LLC acquired a new position in Revolution Medicines during the 2nd quarter valued at about $337,104,000. Institutional investors own 94.34% of the company's stock.

About Revolution Medicines

Revolution Medicines, Inc is a clinical-stage biotechnology company focused on developing targeted therapies for patients with cancer. The company's research centers on the RAS signaling pathway, a key driver of tumor growth that is altered in many cancers, including those involving KRAS mutations.

Its pipeline includes RAS(ON) inhibitors designed to target active RAS proteins and address a range of RAS-driven tumors. Key development programs include daraxonrasib (RMC-6236), a broad-spectrum RAS inhibitor, and zoldonrasib (RMC-9805), an investigational inhibitor aimed at KRAS G12D-mutated cancers.

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