Revolution Medicines, Inc. (NASDAQ:RVMD) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is broadly positive: Twenty-two firms rate Revolution Medicines “Moderate Buy,” including 18 buys and two strong buys, with an average 12-month price target of $144.67.
• RVMD opened at $192.17, near its 52-week high of $194.56, after rising well above its 50-day and 200-day moving averages. However, the company reported a quarterly loss of $2.29 per share, missing the $1.83 consensus estimate.
• Insiders sold shares worth $21.5 million over the past quarter, while institutional investors and hedge funds own 94.34% of the company’s stock.

Shares of Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-two research firms that are currently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, eighteen have assigned a buy rating and two have assigned a strong buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $144.6722.

RVMD has been the topic of several recent research reports. Needham & Company LLC raised their price objective on Revolution Medicines from $235.00 to $236.00 and gave the company a "buy" rating in a report on Monday, July 20th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Revolution Medicines in a report on Friday, July 17th. Evercore reiterated an "outperform" rating on shares of Revolution Medicines in a research report on Tuesday, April 14th. Wedbush lifted their price target on Revolution Medicines from $181.00 to $192.10 and gave the company an "outperform" rating in a research note on Thursday, July 23rd. Finally, Royal Bank Of Canada boosted their price target on Revolution Medicines from $165.00 to $182.00 and gave the stock an "outperform" rating in a report on Tuesday, June 2nd.

Revolution Medicines Price Performance

RVMD stock opened at $192.17 on Friday. The stock has a market cap of $40.85 billion, a price-to-earnings ratio of -27.18 and a beta of 1.37. The company has a debt-to-equity ratio of 0.19, a current ratio of 6.80 and a quick ratio of 6.80. The company has a 50 day simple moving average of $171.85 and a 200 day simple moving average of $134.48. Revolution Medicines has a 1 year low of $34.00 and a 1 year high of $194.56.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported ($2.29) earnings per share for the quarter, missing analysts' consensus estimates of ($1.83) by ($0.46). During the same quarter in the previous year, the business posted ($1.13) EPS. Research analysts anticipate that Revolution Medicines will post -7.92 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Mark A. Goldsmith sold 10,020 shares of Revolution Medicines stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $156.12, for a total transaction of $1,564,322.40. Following the sale, the insider directly owned 267,330 shares in the company, valued at $41,735,559.60. This trade represents a 3.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Sushil Patel sold 5,580 shares of Revolution Medicines stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $187.99, for a total transaction of $1,048,984.20. Following the sale, the director owned 21,656 shares in the company, valued at approximately $4,071,111.44. This represents a 20.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 132,497 shares of company stock worth $21,470,486 over the last quarter. 7.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Revolution Medicines

Hedge funds have recently modified their holdings of the business. Indiana Trust & Investment Management Co acquired a new stake in Revolution Medicines in the fourth quarter valued at $32,000. Contravisory Investment Management Inc. bought a new position in Revolution Medicines during the 2nd quarter worth $32,000. Global Retirement Partners LLC lifted its holdings in Revolution Medicines by 1,002.8% during the 4th quarter. Global Retirement Partners LLC now owns 397 shares of the company's stock worth $32,000 after buying an additional 361 shares during the period. Torren Management LLC acquired a new position in Revolution Medicines during the 4th quarter worth about $33,000. Finally, Arax Advisory Partners bought a new stake in shares of Revolution Medicines in the 4th quarter valued at about $38,000. Institutional investors and hedge funds own 94.34% of the company's stock.

Revolution Medicines Company Profile

Revolution Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapies to treat RAS-dependent cancers and other diseases driven by the RAS/MAPK pathway. The company's research efforts target historically “undruggable” proteins, aiming to inhibit critical nodes in cell signaling that promote tumor growth and therapeutic resistance.

The lead pipeline includes RMC-4630, a SHP2 inhibitor; RMC-6291, a selective KRAS G12C inhibitor; and RMC-6236, a pan-RAS inhibitor designed to address multiple RAS mutations.

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