Revolution Medicines (NASDAQ:RVMD) Shares Gap Up - Should You Buy?

Key Points

• Revolution Medicines (NASDAQ:RVMD) shares gapped up from a previous close of $49.68 to open at $52.76, and traded at $54.27 with over 1 million shares exchanged.
• Analysts have increased their price targets for RVMD, with estimates ranging from $66.00 to $80.00, reflecting a consensus average target price of $76.43.
• Insiders have sold a significant amount of stock recently, with total sales exceeding $8 million over the last quarter, indicating potential shifts in insider confidence.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $49.68, but opened at $52.76. Revolution Medicines shares last traded at $54.27, with a volume of 1,051,611 shares traded.

Wall Street Analysts Forecast Growth

RVMD has been the subject of a number of research analyst reports. Needham & Company LLC lifted their price objective on shares of Revolution Medicines from $56.00 to $66.00 and gave the stock a "buy" rating in a report on Thursday, September 11th. Wedbush reissued an "outperform" rating and issued a $77.00 price target on shares of Revolution Medicines in a research note on Friday. Raymond James Financial set a $76.00 price target on shares of Revolution Medicines and gave the stock a "strong-buy" rating in a research note on Friday. Lifesci Capital initiated coverage on shares of Revolution Medicines in a research note on Monday, August 18th. They issued an "outperform" rating and a $80.00 price target for the company. Finally, The Goldman Sachs Group boosted their price target on shares of Revolution Medicines from $65.00 to $73.00 and gave the stock a "buy" rating in a research note on Friday, September 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $76.43.

Revolution Medicines Trading Up 7.8%

The stock has a market capitalization of $10.01 billion, a P/E ratio of -11.93 and a beta of 1.27. The firm's 50 day moving average price is $42.01 and its 200 day moving average price is $39.42. The company has a debt-to-equity ratio of 0.13, a current ratio of 11.79 and a quick ratio of 11.79.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported ($1.31) EPS for the quarter, missing the consensus estimate of ($0.94) by ($0.37). During the same quarter in the previous year, the company earned ($0.81) EPS. The firm's revenue for the quarter was up .0% on a year-over-year basis. As a group, equities research analysts expect that Revolution Medicines, Inc. will post -3.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Lin Wei sold 2,160 shares of the stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $45.82, for a total value of $98,971.20. Following the completion of the transaction, the insider directly owned 88,339 shares of the company's stock, valued at $4,047,692.98. This represents a 2.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Stephen Michael Kelsey sold 100,000 shares of the stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $44.08, for a total transaction of $4,408,000.00. Following the completion of the transaction, the insider directly owned 289,414 shares of the company's stock, valued at approximately $12,757,369.12. The trade was a 25.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 188,033 shares of company stock valued at $8,456,208 over the last quarter. 8.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Revolution Medicines

A number of hedge funds and other institutional investors have recently bought and sold shares of RVMD. CWM LLC grew its holdings in shares of 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 buying an additional 579 shares during the last quarter. GAMMA Investing LLC lifted its position in Revolution Medicines by 45.1% during the third quarter. GAMMA Investing LLC now owns 837 shares of the company's stock valued at $39,000 after purchasing an additional 260 shares during the period. Banque Transatlantique SA bought a new position in Revolution Medicines during the first quarter valued at approximately $42,000. Quarry LP bought a new position in Revolution Medicines during the first quarter valued at approximately $50,000. Finally, Twin Tree Management LP bought a new position in Revolution Medicines during the first quarter valued at approximately $58,000. Hedge funds and other institutional investors own 94.34% of the company's stock.

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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