Revolution Medicines (NASDAQ:RVMD) Hits New 1-Year High Following Analyst Upgrade

Key Points

• Revolution Medicines (NASDAQ: RVMD) hit a new 52-week high after Mizuho raised its price target from $185 to $215 and maintained an outperform rating. The stock traded as high as $193.36 on the news.
• Several other analysts also turned more bullish recently, with multiple firms raising targets and issuing buy or outperform ratings. The stock now carries a consensus rating of Moderate Buy, though the average price target is still below current trading levels at $142.33.
• Insider selling has been notable, including shares sold by Director Sushil Patel and CFO Jack Anders, while institutional ownership remains very high at 94.34%. The company also reported a wider-than-expected quarterly loss, with EPS of -$2.29 versus the -$1.83 estimate.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) reached a new 52-week high on Monday after Mizuho raised their price target on the stock from $185.00 to $215.00. Mizuho currently has an outperform rating on the stock. Revolution Medicines traded as high as $193.36 and last traded at $189.9170, with a volume of 130502 shares changing hands. The stock had previously closed at $189.24.

Several other research analysts also recently commented on the company. HC Wainwright raised their price objective on Revolution Medicines from $169.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Needham & Company LLC boosted their price objective on Revolution Medicines from $183.00 to $235.00 and gave the company a "buy" rating in a research note on Monday, June 29th. Jefferies Financial Group started coverage on shares of Revolution Medicines in a research note on Monday, March 16th. They set a "buy" rating on the stock. Truist Financial lifted their price target on shares of Revolution Medicines from $179.00 to $210.00 and gave the company a "buy" rating in a report on Tuesday, June 30th. Finally, Royal Bank Of Canada upped their price target on shares of Revolution Medicines from $165.00 to $182.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $142.33.

Insiders Place Their Bets

In other news, Director Sushil Patel sold 5,580 shares of the company's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $187.99, for a total value of $1,048,984.20. Following the completion of the transaction, the director owned 21,656 shares of the company's stock, valued at $4,071,111.44. This represents a 20.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Jack Anders sold 20,000 shares of the stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $168.33, for a total value of $3,366,600.00. Following the sale, the chief financial officer owned 123,269 shares of the company's stock, valued at $20,749,870.77. This represents a 13.96% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 252,497 shares of company stock valued at $39,481,286. Insiders own 7.60% of the company's stock.

Institutional Investors Weigh In On Revolution Medicines

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of Revolution Medicines by 6.7% during the fourth quarter. Vanguard Group Inc. now owns 16,719,886 shares of the company's stock worth $1,331,739,000 after acquiring an additional 1,056,792 shares during the last quarter. Farallon Capital Management LLC increased its holdings in Revolution Medicines by 2.1% in the 3rd quarter. Farallon Capital Management LLC now owns 14,625,692 shares of the company's stock valued at $683,020,000 after acquiring an additional 300,000 shares during the last quarter. Janus Henderson Group PLC increased its holdings in Revolution Medicines by 8.3% in the 4th quarter. Janus Henderson Group PLC now owns 12,303,502 shares of the company's stock valued at $980,036,000 after acquiring an additional 947,448 shares during the last quarter. Baker BROS. Advisors LP lifted its stake in Revolution Medicines by 1.0% in the 3rd quarter. Baker BROS. Advisors LP now owns 9,455,357 shares of the company's stock worth $441,565,000 after purchasing an additional 90,385 shares in the last quarter. Finally, Nextech Invest Ltd. lifted its stake in Revolution Medicines by 20.7% in the 4th quarter. Nextech Invest Ltd. now owns 7,601,087 shares of the company's stock worth $332,472,000 after purchasing an additional 1,304,347 shares in the last quarter. Institutional investors own 94.34% of the company's stock.

Revolution Medicines Price Performance

The firm's fifty day simple moving average is $156.00 and its 200 day simple moving average is $120.84. The firm has a market cap of $40.80 billion, a P/E ratio of -27.18 and a beta of 1.37. The company has a debt-to-equity ratio of 0.19, a quick ratio of 6.80 and a current ratio of 6.80.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported ($2.29) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.83) by ($0.46). During the same period in the previous year, the company earned ($1.13) earnings per share. As a group, analysts forecast that Revolution Medicines, Inc. will post -7.94 earnings per share for the current year.

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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