Revolution Medicines Sees Unusually High Options Volume (NASDAQ:RVMD)

Key Points

• Unusual options activity: Traders bought 6,313 put options on RVMD on Friday, a 154% increase versus the average daily put volume, signaling elevated bearish bets or hedging interest.
• The stock traded at $123.30 (near its 52-week high of $124.49) with a market cap of $23.84 billion, despite a recent quarterly EPS miss and analysts projecting -3.49 EPS for the year; the consensus price target is $78.94.
• Insider selling and ownership: Company insiders sold about 243,792 shares worth $19.76 million over the past three months (including a CFO sale of 10,000 shares), while institutional investors hold roughly 94.34% of the stock.

Revolution Medicines, Inc. (NASDAQ:RVMD - Get Free Report) was the recipient of some unusual options trading activity on Friday. Traders acquired 6,313 put options on the stock. This is an increase of 154% compared to the average daily volume of 2,484 put options.

Revolution Medicines Stock Performance

NASDAQ RVMD traded up $0.03 during trading hours on Friday, reaching $123.30. 385,440 shares of the company were exchanged, compared to its average volume of 6,644,129. The stock has a market capitalization of $23.84 billion, a P/E ratio of -23.82 and a beta of 0.99. The company has a quick ratio of 8.05, a current ratio of 8.05 and a debt-to-equity ratio of 0.16. Revolution Medicines has a 1 year low of $29.17 and a 1 year high of $124.49. The business's 50 day simple moving average is $81.22 and its 200-day simple moving average is $56.26.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last released its earnings results on Wednesday, November 5th. The company reported ($1.61) earnings per share for the quarter, missing analysts' consensus estimates of ($1.39) by ($0.22). During the same quarter in the previous year, the company earned ($0.94) EPS. On average, equities research analysts expect that Revolution Medicines will post -3.49 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on RVMD shares. UBS Group raised shares of Revolution Medicines to a "strong-buy" rating in a research report on Thursday, December 4th. Needham & Company LLC increased their price objective on Revolution Medicines from $66.00 to $72.00 and gave the stock a "buy" rating in a research note on Thursday, November 6th. Mizuho began coverage on Revolution Medicines in a research report on Tuesday, October 21st. They set an "outperform" rating and a $90.00 target price on the stock. Raymond James Financial increased their price target on Revolution Medicines from $72.00 to $76.00 and gave the company a "strong-buy" rating in a research report on Friday, October 17th. Finally, HC Wainwright lifted their price objective on shares of Revolution Medicines from $72.00 to $73.00 and gave the stock a "buy" rating in a report on Thursday, November 6th. Four analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and an average price target of $78.94.

Insider Activity at Revolution Medicines

In other Revolution Medicines news, CFO Jack Anders sold 10,000 shares of the stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $98.00, for a total value of $980,000.00. Following the transaction, the chief financial officer owned 108,065 shares in the company, valued at approximately $10,590,370. This represents a 8.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Stephen Michael Kelsey sold 5,447 shares of the firm's stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $76.82, for a total value of $418,438.54. Following the completion of the sale, the insider directly owned 278,600 shares of the company's stock, valued at $21,402,052. This trade represents a 1.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 243,792 shares of company stock worth $19,757,740 over the last three months. 8.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Revolution Medicines

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. CWM LLC lifted its stake in shares of Revolution Medicines by 171.3% during the 2nd quarter. CWM LLC now owns 917 shares of the company's stock valued at $34,000 after buying an additional 579 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of Revolution Medicines by 45.1% in the third quarter. GAMMA Investing LLC now owns 837 shares of the company's stock worth $39,000 after acquiring an additional 260 shares during the period. a16z Perennial Management L.P. bought a new position in shares of Revolution Medicines in the second quarter worth $67,000. AlphaQuest LLC purchased a new position in shares of Revolution Medicines in the second quarter valued at $73,000. Finally, Danske Bank A S bought a new stake in shares of Revolution Medicines during the 3rd quarter valued at $98,000. 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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