Wedbush Reduces Earnings Estimates for Revolution Medicines

Key Points

• Wedbush has significantly reduced its Q3 2025 EPS estimate for Revolution Medicines to ($1.33), down from a previous estimate of $0.02.
• The company's recent earnings results showed a loss of ($1.31) per share, missing analyst estimates by ($0.37), despite a slight revenue increase year-over-year.
• The consensus target price for Revolution Medicines shares is currently set at $73.67, with 14 analysts rating the stock as a buy.

Revolution Medicines, Inc. (NASDAQ:RVMD - Free Report) - Investment analysts at Wedbush lowered their Q3 2025 earnings estimates for shares of Revolution Medicines in a note issued to investors on Thursday, September 11th. Wedbush analyst R. Driscoll now forecasts that the company will post earnings per share of ($1.33) for the quarter, down from their previous estimate of $0.02. Wedbush currently has a "Outperform" rating and a $77.00 target price on the stock. The consensus estimate for Revolution Medicines' current full-year earnings is ($3.49) per share. Wedbush also issued estimates for Revolution Medicines' Q4 2025 earnings at ($1.36) EPS, FY2025 earnings at ($5.14) EPS, Q1 2026 earnings at ($1.40) EPS, Q2 2026 earnings at ($1.43) EPS, Q3 2026 earnings at ($1.46) EPS, Q4 2026 earnings at ($1.48) EPS, FY2026 earnings at ($5.77) EPS, FY2027 earnings at ($5.52) EPS and FY2028 earnings at ($3.67) EPS.

Several other analysts have also recently commented on RVMD. Guggenheim reiterated a "buy" rating and issued a $80.00 price objective on shares of Revolution Medicines in a research note on Wednesday, June 25th. Needham & Company LLC raised their price objective on shares of Revolution Medicines from $56.00 to $66.00 and gave the company a "buy" rating in a research note on Thursday, September 11th. Piper Sandler began coverage on shares of Revolution Medicines in a research note on Monday, August 18th. They issued an "overweight" rating and a $75.00 price objective for the company. Raymond James Financial began coverage on shares of Revolution Medicines in a research note on Friday, September 12th. They issued a "strong-buy" rating and a $72.00 price objective for the company. Finally, The Goldman Sachs Group raised their price objective on shares of Revolution Medicines from $65.00 to $73.00 and gave the company a "buy" rating in a research note on Friday, September 12th. One investment analyst has rated the stock with a Strong Buy rating and fourteen have assigned a Buy rating to the stock. Based on data from MarketBeat, Revolution Medicines currently has an average rating of "Buy" and an average target price of $73.67.

Revolution Medicines Price Performance

Shares of NASDAQ RVMD traded down $1.68 during midday trading on Monday, hitting $43.54. The company had a trading volume of 2,868,241 shares, compared to its average volume of 2,066,615. The company has a quick ratio of 11.79, a current ratio of 11.79 and a debt-to-equity ratio of 0.13. Revolution Medicines has a twelve month low of $29.17 and a twelve month high of $62.40. The business has a 50-day simple moving average of $38.65 and a two-hundred day simple moving average of $38.37. The firm has a market capitalization of $8.14 billion, a price-to-earnings ratio of -9.68 and a beta of 1.12.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported ($1.31) EPS for the quarter, missing the consensus estimate of ($0.94) by ($0.37). During the same period in the prior year, the business posted ($0.81) EPS. The company's revenue for the quarter was up .0% compared to the same quarter last year.

Institutional Investors Weigh In On Revolution Medicines

Hedge funds and other institutional investors have recently modified their holdings of the company. CWM LLC grew its holdings in shares of Revolution Medicines by 171.3% during the second quarter. CWM LLC now owns 917 shares of the company's stock worth $34,000 after buying an additional 579 shares in the last quarter. Banque Transatlantique SA purchased a new stake in Revolution Medicines in the first quarter valued at approximately $42,000. Quarry LP purchased a new stake in Revolution Medicines in the first quarter valued at approximately $50,000. Twin Tree Management LP purchased a new stake in Revolution Medicines in the first quarter valued at approximately $58,000. Finally, a16z Perennial Management L.P. purchased a new stake in Revolution Medicines in the second quarter valued at approximately $67,000. 94.34% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Revolution Medicines

In other news, CFO Jack Anders sold 2,320 shares of Revolution Medicines stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $45.82, for a total transaction of $106,302.40. Following the completion of the sale, the chief financial officer directly owned 110,994 shares in the company, valued at $5,085,745.08. The trade was a 2.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Stephen Michael Kelsey sold 5,367 shares of Revolution Medicines stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $45.82, for a total transaction of $245,915.94. Following the sale, the insider owned 284,047 shares of the company's stock, valued at approximately $13,015,033.54. This trade represents a 1.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 163,033 shares of company stock valued at $7,242,708. Corporate insiders own 8.20% of the company's stock.

About Revolution Medicines

Revolution Medicines, Inc, a clinical-stage precision oncology company, develops novel targeted therapies for RAS-addicted cancers. The company's research and development pipeline comprises RAS(ON) inhibitors designed to be used as monotherapy in combination with other RAS(ON) inhibitors and/or in combination with RAS companion inhibitors or other therapeutic agents, and RAS companion inhibitors for combination treatment strategies.