Revolution Medicines (NASDAQ:RVMD) Stock Falls 4.7% - Should You Sell?

Key Points

• Revolution Medicines shares fell 4.7% to $184 during Wednesday trading, while volume was 77% below its average.
• Analysts remain broadly positive: the stock has a “Moderate Buy” consensus rating and a $263.15 average price target; HC Wainwright reiterated Buy with a $350 target.
• The company beat quarterly forecasts, reporting a loss of $1.90 per share versus the expected $2.35 loss and revenue of $197.56 million versus $25.58 million expected. Insiders have sold about 291,000 shares worth $59.4 million over the past 90 days.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report)'s stock price was down 4.7% on Wednesday. The stock traded as low as $181.01 and last traded at $184.00. Approximately 649,969 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 2,799,531 shares. The stock had previously closed at $193.06.

Key Headlines Impacting Revolution Medicines

These are some of the RVMD headlines that stood out recently:

• Positive Sentiment: HC Wainwright raised its earnings estimates across multiple quarters and for 2026 and 2027, including forecasting a return to positive full-year EPS in 2027. The firm reiterated its Buy rating and $350 price target. MarketBeat analyst estimates
• Positive Sentiment: Zacks reported a consensus price target implying about 33% upside and noted that improving earnings estimate revisions could support near-term sentiment. It cautioned that price targets alone have limited predictive value. Zacks analyst outlook
• Neutral Sentiment: A short-interest report lists zero shares sold short and a 0.0-day days-to-cover ratio, despite describing short interest as having increased. The figures appear inconsistent, so this data may not provide a reliable signal about positioning.

Wall Street Analysts Forecast Growth

Several research analysts have commented on RVMD shares. Stifel Nicolaus upped their target price 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. Bank of America reduced their price objective on Revolution Medicines from $265.00 to $264.00 and set a "buy" rating for the company in a research report on Friday, October 9th. Wolfe Research reissued an "outperform" rating and issued a $220.00 price objective on shares of Revolution Medicines in a report on Monday, August 10th. Morgan Stanley began coverage on Revolution Medicines in a research report on Thursday, September 10th. They issued an "overweight" rating and a $255.00 target price on the stock. Finally, Sanford C. Bernstein lifted their target price on Revolution Medicines from $151.00 to $179.00 and gave the company a "market perform" rating in a research note on Friday, August 21st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Revolution Medicines has an average rating of "Moderate Buy" and a consensus target price of $263.15.

Revolution Medicines Stock Down 5.4%

The company has a debt-to-equity ratio of 0.44, a current ratio of 8.36 and a quick ratio of 8.34. The firm has a market capitalization of $39.49 billion, a P/E ratio of -20.07 and a beta of 1.44. The firm's fifty day moving average price is $196.48 and its 200-day moving average price is $158.35.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported ($1.90) earnings per share for the quarter, topping analysts' consensus estimates of ($2.35) by $0.45. The firm had revenue of $197.56 million during the quarter, compared to analyst estimates of $25.58 million. During the same quarter last year, the company earned ($1.61) earnings per share. As a group, equities research analysts forecast that Revolution Medicines, Inc. will post -7.68 earnings per share for the current year.

Insider Activity at Revolution Medicines

In other news, Director Elizabeth Anderson sold 10,143 shares of the firm's stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $193.04, for a total transaction of $1,958,004.72. Following the completion of the transaction, the director owned 4,333 shares in the company, valued at approximately $836,442.32. This trade represents a 70.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Stephen Kelsey sold 92,531 shares of the business's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $202.36, for a total transaction of $18,724,573.16. Following the completion of the sale, the insider owned 291,876 shares in the company, valued at $59,064,027.36. The trade was a 24.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 290,991 shares of company stock worth $59,422,765. Company insiders own 7.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Private Wealth Asset Management LLC purchased a new stake in shares of Revolution Medicines during the third quarter valued at $281,000. Greenline Wealth Management LLC purchased a new position in Revolution Medicines in the 3rd quarter worth about $217,000. Westpac Banking Corp purchased a new position in Revolution Medicines in the 3rd quarter worth about $145,000. Ieq Capital LLC raised its holdings in Revolution Medicines by 19.5% during the 3rd quarter. Ieq Capital LLC now owns 70,286 shares of the company's stock worth $14,427,000 after buying an additional 11,452 shares during the period. Finally, Focus Advisor Solutions LLC raised its holdings in Revolution Medicines by 281.7% during the 3rd quarter. Focus Advisor Solutions LLC now owns 6,225 shares of the company's stock worth $1,278,000 after buying an additional 4,594 shares during the period. Institutional investors own 94.34% of the company's stock.

About Revolution Medicines

Revolution Medicines, Inc. is a biotechnology company focused on developing targeted therapies for patients with RAS-driven cancers. Founded in 2014 and headquartered in Redwood City, California, the company's research centers on RAS proteins, which can contribute to the growth of many cancers. The company's pipeline includes drug candidates designed to inhibit mutant RAS proteins, including daraxonrasib (RMC-6236), which targets multiple RAS variants, and candidates directed at specific KRAS mutations.

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