Revolution Medicines (NASDAQ:RVMD) Sets New 12-Month High - Should You Buy?

Key Points

• Revolution Medicines reached a new 52-week high of $208.76, with shares recently trading near $206.97 and above both their 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with 19 Buy ratings and an overall “Moderate Buy” consensus, although the average price target of $160.68 is below the current share price.
• The company reported a larger-than-expected quarterly loss of $3.06 per share versus the $2.04 consensus estimate. Insiders have sold roughly $21.5 million of shares over the past 90 days, primarily to cover tax obligations tied to equity awards.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $208.76 and last traded at $206.97, with a volume of 2100357 shares trading hands. The stock had previously closed at $205.15.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on RVMD shares. HC Wainwright restated a "buy" rating and set a $195.00 price target on shares of Revolution Medicines in a report on Monday, July 6th. Weiss Ratings restated a "sell (d-)" rating on shares of Revolution Medicines in a research note on Friday, July 17th. Wedbush raised their target price on shares of Revolution Medicines from $192.10 to $201.00 and gave the company an "outperform" rating in a report on Thursday. Sanford C. Bernstein started coverage on shares of Revolution Medicines in a research note on Thursday, May 21st. They issued a "market perform" rating and a $151.00 price target for the company. Finally, Evercore reissued an "outperform" rating and issued a $230.00 price objective on shares of Revolution Medicines in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $160.68.

Revolution Medicines Stock Up 0.9%

The business has a 50 day moving average of $177.53 and a 200-day moving average of $138.22. The stock has a market cap of $44.36 billion, a PE ratio of -23.47 and a beta of 1.39. The company has a current ratio of 11.38, a quick ratio of 11.38 and a debt-to-equity ratio of 0.40.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($3.06) earnings per share for the quarter, missing analysts' consensus estimates of ($2.04) by ($1.02). During the same quarter in the prior year, the firm posted ($1.31) earnings per share. Equities research analysts predict that Revolution Medicines, Inc. will post -8.19 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Mark A. Goldsmith sold 10,020 shares of the company'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 $1,564,322.40. Following the completion of the sale, the insider owned 267,330 shares in the company, valued at $41,735,559.60. This represents a 3.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Margaret A. Horn sold 60,400 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $160.17, for a total transaction of $9,674,268.00. Following the sale, the chief operating officer owned 158,222 shares of the company's stock, valued at approximately $25,342,417.74. This represents a 27.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 132,497 shares of company stock worth $21,470,486. Corporate insiders own 7.60% of the company's stock.

Institutional Trading of Revolution Medicines

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Meeder Advisory Services Inc. raised its position in Revolution Medicines by 3.0% during the first quarter. Meeder Advisory Services Inc. now owns 4,126 shares of the company's stock worth $401,000 after acquiring an additional 120 shares during the last quarter. PNC Financial Services Group Inc. grew its position in shares of Revolution Medicines by 1.3% in the fourth quarter. PNC Financial Services Group Inc. now owns 10,066 shares of the company's stock valued at $802,000 after purchasing an additional 125 shares during the last quarter. Deutsche Bank AG increased its stake in shares of 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 purchasing an additional 130 shares in the last quarter. Signaturefd LLC increased its stake in shares of Revolution Medicines by 33.1% during the 4th quarter. Signaturefd LLC now owns 656 shares of the company's stock worth $52,000 after purchasing an additional 163 shares in the last quarter. Finally, Contravisory Investment Management Inc. acquired a new position in shares of Revolution Medicines during the 2nd quarter worth approximately $32,000. 94.34% of the stock is owned by hedge funds and other institutional investors.

About Revolution Medicines

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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