Revolution Medicines (NASDAQ:RVMD) Sets New 1-Year High - Time to Buy?

Key Points

• Revolution Medicines shares reached a new 52-week high of $197.47, giving the company a market capitalization of approximately $41.4 billion.
• Analyst sentiment is broadly positive, with 20 of 22 analysts rating the stock Buy or Strong Buy; however, the consensus price target of $144.67 is below the current share price, and one firm maintains a Sell rating.
• The clinical-stage biopharmaceutical company remains unprofitable, reporting a quarterly EPS loss of $2.29 versus the expected $1.83 loss. Insiders sold about $21.5 million of stock over the past quarter, while institutional investors own 94.34% of shares.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report)'s share price hit a new 52-week high on Wednesday . The stock traded as high as $197.47 and last traded at $197.47, with a volume of 96802 shares. The stock had previously closed at $193.46.

Wall Street Analyst Weigh In

A number of brokerages recently commented on RVMD. Truist Financial lifted their price objective on Revolution Medicines from $179.00 to $210.00 and gave the stock a "buy" rating in a research report on Tuesday, June 30th. Needham & Company LLC lifted their price target on Revolution Medicines from $235.00 to $236.00 and gave the stock a "buy" rating in a report on Monday, July 20th. Stifel Nicolaus reissued a "buy" rating on shares of Revolution Medicines in a report on Monday, April 20th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Revolution Medicines in a research note on Friday, July 17th. Finally, HC Wainwright reissued a "buy" rating and issued a $195.00 price target on shares of Revolution Medicines in a research note on Monday, July 6th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Revolution Medicines currently has an average rating of "Moderate Buy" and a consensus price target of $144.67.

Revolution Medicines Stock Performance

The firm's fifty day moving average is $173.96 and its 200-day moving average is $135.92. The company has a current ratio of 6.80, a quick ratio of 6.80 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $41.40 billion, a PE ratio of -27.54 and a beta of 1.39.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($2.29) earnings per share for the quarter, missing the consensus estimate of ($1.83) by ($0.46). During the same period in the prior year, the firm earned ($1.13) EPS. As a group, research analysts anticipate that Revolution Medicines, Inc. will post -7.92 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Jack Anders sold 20,000 shares of Revolution Medicines stock in a transaction on 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 completion of the sale, the chief financial officer directly owned 123,269 shares of the company's stock, valued at approximately $20,749,870.77. The trade was a 13.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Stephen Michael Kelsey sold 4,175 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $156.12, for a total value of $651,801.00. Following the completion of the sale, the insider owned 291,876 shares in the company, valued at $45,567,681.12. This represents a 1.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 132,497 shares of company stock valued at $21,470,486 over the last quarter. 7.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Revolution Medicines

Several institutional investors have recently bought and sold shares of RVMD. Meeder Advisory Services Inc. boosted its stake in shares of Revolution Medicines by 3.0% in the first quarter. Meeder Advisory Services Inc. now owns 4,126 shares of the company's stock valued at $401,000 after purchasing an additional 120 shares during the period. PNC Financial Services Group Inc. increased its stake in Revolution Medicines by 1.3% during the 4th quarter. PNC Financial Services Group Inc. now owns 10,066 shares of the company's stock worth $802,000 after buying an additional 125 shares during the period. Deutsche Bank AG lifted its holdings in Revolution Medicines by 0.4% during the 4th quarter. Deutsche Bank AG now owns 32,217 shares of the company's stock worth $2,566,000 after buying an additional 130 shares in the last quarter. Signaturefd LLC lifted its holdings in Revolution Medicines by 33.1% during the 4th quarter. Signaturefd LLC now owns 656 shares of the company's stock worth $52,000 after buying an additional 163 shares in the last quarter. Finally, Contravisory Investment Management Inc. purchased a new position in Revolution Medicines in the 2nd quarter valued at approximately $32,000. 94.34% of the stock is owned by institutional investors and hedge funds.

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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