Revolution Medicines (NASDAQ:RVMD) Shares Gap Up After Analyst Upgrade

Key Points

• Truist upgrade pushed Revolution Medicines shares to gap up, opening at $146.22 (prior close $131.67) and last trading around $142.88 on roughly 1.2M shares.
• Sell‑side coverage is overwhelmingly positive (four Strong Buy, sixteen Buy, one Sell) yet the MarketBeat consensus target is just $78.94, well below current trading levels.
• Insiders sold 184,592 shares (~$24.5M) in the past 90 days; insiders own 8.20% of the stock while institutional investors hold about 94.34%.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report)'s stock price gapped up prior to trading on Tuesday after Truist Financial upgraded the stock to a strong-buy rating. The stock had previously closed at $131.67, but opened at $146.22. Revolution Medicines shares last traded at $142.8820, with a volume of 1,195,608 shares changing hands.

Several other equities research analysts also recently issued reports on RVMD. Evercore reiterated an "outperform" rating on shares of Revolution Medicines in a research note on Tuesday, April 14th. UBS Group started coverage on shares of Revolution Medicines in a research note on Friday, February 27th. They issued a "buy" rating for the company. HC Wainwright reiterated a "buy" rating on shares of Revolution Medicines in a research note on Wednesday, April 22nd. Wedbush reissued an "outperform" rating on shares of Revolution Medicines in a report on Tuesday, April 14th. Finally, Stifel Nicolaus reissued a "buy" rating on shares of Revolution Medicines in a report on Monday, April 20th. Four investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $78.94.

Insider Transactions at Revolution Medicines

In other Revolution Medicines news, CFO Jack Anders sold 2,753 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $99.48, for a total value of $273,868.44. Following the transaction, the chief financial officer directly owned 125,512 shares of the company's stock, valued at $12,485,933.76. This represents a 2.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Lin Wei sold 2,073 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $99.48, for a total transaction of $206,222.04. Following the completion of the transaction, the insider directly owned 101,366 shares in the company, valued at approximately $10,083,889.68. This represents a 2.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 184,592 shares of company stock worth $24,499,532. 8.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Global Retirement Partners LLC increased its holdings in shares of Revolution Medicines by 1,002.8% during the fourth quarter. Global Retirement Partners LLC now owns 397 shares of the company's stock worth $32,000 after purchasing an additional 361 shares during the period. Indiana Trust & Investment Management Co bought a new position in shares of Revolution Medicines during the fourth quarter worth approximately $32,000. Torren Management LLC bought a new position in shares of Revolution Medicines during the fourth quarter worth approximately $33,000. Arax Advisory Partners bought a new position in shares of Revolution Medicines during the fourth quarter worth approximately $38,000. Finally, Darwin Wealth Management LLC bought a new position in shares of Revolution Medicines during the fourth quarter worth approximately $40,000. 94.34% of the stock is owned by institutional investors.

Revolution Medicines Price Performance

The company's fifty day moving average price is $108.27 and its 200 day moving average price is $90.40. The company has a market capitalization of $28.25 billion, a P/E ratio of -24.19 and a beta of 1.01. The company has a quick ratio of 7.14, a current ratio of 7.14 and a debt-to-equity ratio of 0.16.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported ($1.86) EPS for the quarter, missing the consensus estimate of ($1.56) by ($0.30). During the same period in the prior year, the company earned ($1.12) EPS. As a group, sell-side analysts forecast that Revolution Medicines, Inc. will post -7.42 EPS 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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