Revolution Medicines (NASDAQ:RVMD) Stock Price Expected to Rise, Wedbush Analyst Says

Key Points

• Wedbush raised its price target on Revolution Medicines (NASDAQ: RVMD) to $165 with an "outperform" rating — implying about a 14.11% upside — while the MarketBeat analyst consensus remains a "Buy" with an average target of $97.00 (4 Strong Buy, 16 Buy, 1 Sell).
• Shares fell 4.3% to $144.60 after trading, and the company missed Q1 EPS (reported -$2.29 vs. -$1.83 expected); analysts expect -7.42 EPS for the year.
• Insiders have sold recently (184,592 shares worth ~$24.5M in the last three months) even as institutional ownership is very high at 94.34%, with several large funds (e.g., Swiss National Bank, KBC, SEB) adding or increasing positions.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) had its price target increased by investment analysts at Wedbush to $165.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Wedbush's target price would suggest a potential upside of 14.11% from the stock's current price.

Several other equities analysts also recently commented on the stock. Jefferies Financial Group initiated coverage on shares of Revolution Medicines in a report on Monday, March 16th. They issued a "buy" rating on the stock. Benchmark reiterated an "overweight" rating on shares of Revolution Medicines in a report on Tuesday, February 17th. Stifel Nicolaus reiterated a "buy" rating on shares of Revolution Medicines in a report on Monday, April 20th. Truist Financial upgraded shares of Revolution Medicines to a "strong-buy" rating in a report on Monday, April 27th. Finally, Evercore reiterated an "outperform" rating on shares of Revolution Medicines in a report on Tuesday, April 14th. Four investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $97.00.

Revolution Medicines Stock Down 4.3%

RVMD traded down $6.47 during trading on Thursday, reaching $144.60. 447,999 shares of the stock were exchanged, compared to its average volume of 3,481,422. The stock has a market cap of $30.74 billion, a P/E ratio of -24.49 and a beta of 1.41. Revolution Medicines has a twelve month low of $34.00 and a twelve month high of $155.70. The stock's 50 day moving average price is $112.65 and its two-hundred day moving average price is $93.81. The company has a debt-to-equity ratio of 0.16, a quick ratio of 7.14 and a current ratio of 7.14.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported ($2.29) earnings per share for the quarter, missing analysts' consensus estimates of ($1.83) by ($0.46). During the same period last year, the business posted ($1.13) EPS. Equities analysts expect that Revolution Medicines will post -7.42 EPS for the current year.

Insider Transactions at Revolution Medicines

In other 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 completion of the transaction, the chief financial officer owned 125,512 shares of the company's stock, valued at approximately $12,485,933.76. This represents a 2.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Margaret A. Horn sold 4,583 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $99.48, for a total transaction of $455,916.84. Following the completion of the transaction, the chief operating officer directly owned 157,570 shares of the company's stock, valued at $15,675,063.60. This trade represents a 2.83% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 184,592 shares of company stock valued at $24,499,532. 8.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RVMD. KBC Group NV increased its position in Revolution Medicines by 266.6% during the 1st quarter. KBC Group NV now owns 15,395 shares of the company's stock valued at $1,497,000 after purchasing an additional 11,196 shares during the period. SEB Asset Management AB acquired a new stake in shares of Revolution Medicines during the 1st quarter worth approximately $6,772,000. Swiss National Bank grew its position in shares of Revolution Medicines by 54.0% during the 1st quarter. Swiss National Bank now owns 425,431 shares of the company's stock worth $41,373,000 after buying an additional 149,100 shares during the period. Jennison Associates LLC grew its position in shares of Revolution Medicines by 0.7% during the 1st quarter. Jennison Associates LLC now owns 307,377 shares of the company's stock worth $29,892,000 after buying an additional 2,117 shares during the period. Finally, Financiere des Professionnels Fonds d investissement inc. acquired a new stake in Revolution Medicines in the 1st quarter valued at $1,022,000. Institutional investors own 94.34% of the company's stock.

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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