Revolution Medicines (NASDAQ:RVMD) Shares Gap Down After Earnings Miss

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.

Shares of Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) gapped down prior to trading on Thursday following a dissappointing earnings announcement. 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 traded.

The company reported ($1.31) earnings per share for the quarter, missing the consensus estimate of ($0.94) by ($0.37). Revolution Medicines's revenue was up .0% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.81) earnings per share.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on RVMD shares. Wedbush reissued an "outperform" rating and issued a $73.00 target price (up previously from $67.00) on shares of Revolution Medicines in a report on Tuesday, June 24th. Guggenheim reissued a "buy" rating and issued a $80.00 target price on shares of Revolution Medicines in a report on Wednesday, June 25th. HC Wainwright reissued a "buy" rating and issued a $72.00 target price (down previously from $73.00) on shares of Revolution Medicines in a report on Wednesday, May 14th. Needham & Company LLC dropped their target price on Revolution Medicines from $57.00 to $56.00 and set a "buy" rating on the stock in a report on Thursday. Finally, The Goldman Sachs Group started coverage on Revolution Medicines in a report on Tuesday, July 15th. They issued a "buy" rating and a $65.00 target price on the stock. Eleven research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company has an average rating of "Buy" and an average target price of $68.82.

Hedge Funds Weigh In On Revolution Medicines

Institutional investors have recently added to or reduced their stakes in the company. CWM LLC lifted its holdings in Revolution Medicines by 171.3% in the 2nd quarter. CWM LLC now owns 917 shares of the company's stock worth $34,000 after buying an additional 579 shares in the last quarter. Banque Transatlantique SA acquired a new stake in shares of Revolution Medicines in the 1st quarter valued at about $42,000. Quarry LP acquired a new stake in shares of Revolution Medicines in the 1st quarter valued at about $50,000. Twin Tree Management LP acquired a new stake in shares of Revolution Medicines in the 1st quarter valued at about $58,000. Finally, a16z Perennial Management L.P. acquired a new stake in shares of Revolution Medicines in the 2nd quarter valued at about $67,000. Institutional investors and hedge funds own 94.34% of the company's stock.

Revolution Medicines Stock Performance

The firm has a market cap of $6.47 billion, a price-to-earnings ratio of -8.65 and a beta of 1.16. The business's 50 day moving average price is $38.60 and its 200-day moving average price is $38.84.

Revolution Medicines Company Profile

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.

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