Revolution Medicines (NASDAQ:RVMD) Shares Gap Down on Disappointing Earnings

Key Points

• Revolution Medicines shares fell significantly, opening at $34.18 after a disappointing earnings report that revealed a loss of ($1.31) per share, missing estimates by ($0.37).
• Despite the earnings miss, analysts remain optimistic with a consensus "Buy" rating and an average target price of $68.82 for the stock.
• Institutional investors own a substantial 94.34% of Revolution Medicines, highlighting significant confidence in the company's potential within the oncology sector.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $36.67, but opened at $34.18. Revolution Medicines shares last traded at $34.80, with a volume of 351,200 shares changing hands.

The company reported ($1.31) earnings per share for the quarter, missing analysts' consensus estimates of ($0.94) by ($0.37). The company's revenue for the quarter was up .0% on a year-over-year basis. During the same period last year, the business earned ($0.81) EPS.

Analysts Set New Price Targets

A number of equities analysts have recently commented on RVMD shares. Needham & Company LLC dropped their price target on shares of Revolution Medicines from $57.00 to $56.00 and set a "buy" rating on the stock in a research report on Thursday. Wedbush reissued an "outperform" rating and set a $73.00 price objective (up from $67.00) on shares of Revolution Medicines in a report on Tuesday, June 24th. Guggenheim reaffirmed a "buy" rating and issued a $80.00 price target on shares of Revolution Medicines in a research note on Wednesday, June 25th. HC Wainwright reaffirmed a "buy" rating and set a $72.00 price target (down previously from $73.00) on shares of Revolution Medicines in a research report on Wednesday, May 14th. Finally, Oppenheimer increased their price objective on Revolution Medicines from $70.00 to $75.00 and gave the company an "outperform" rating in a report on Thursday, May 8th. Eleven investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $68.82.

Institutional Investors Weigh In On Revolution Medicines

A number of hedge funds have recently made changes to their positions in the business. Principal Financial Group Inc. lifted its holdings in Revolution Medicines by 2.1% in the 1st quarter. Principal Financial Group Inc. now owns 12,792 shares of the company's stock worth $452,000 after buying an additional 259 shares during the period. Russell Investments Group Ltd. increased its holdings in shares of Revolution Medicines by 11.4% in the 4th quarter. Russell Investments Group Ltd. now owns 4,243 shares of the company's stock worth $186,000 after purchasing an additional 434 shares in the last quarter. CANADA LIFE ASSURANCE Co grew its holdings in shares of Revolution Medicines by 5.0% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 11,398 shares of the company's stock worth $498,000 after acquiring an additional 545 shares during the period. CWM LLC lifted its position in Revolution Medicines by 171.3% during the second quarter. CWM LLC now owns 917 shares of the company's stock valued at $34,000 after purchasing an additional 579 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. lifted its position in Revolution Medicines by 11.0% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 6,221 shares of the company's stock valued at $232,000 after purchasing an additional 615 shares in the last quarter. 94.34% of the stock is currently owned by institutional investors.

Revolution Medicines Stock Performance

The company has a quick ratio of 11.79, a current ratio of 11.79 and a debt-to-equity ratio of 0.13. The stock has a market cap of $6.43 billion, a P/E ratio of -7.63 and a beta of 1.16. The business has a 50 day moving average price of $38.42 and a two-hundred day moving average price of $38.74.

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.