Revolution Medicines (NASDAQ:RVMD) Shares Gap Down – Time to Sell?

Revolution Medicines, Inc. (NASDAQ:RVMD)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $102.71, but opened at $95.21. Revolution Medicines shares last traded at $98.0570, with a volume of 2,458,413 shares.

Key Stories Impacting Revolution Medicines

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: Reports that Merck is in talks to acquire Revolution Medicines for roughly $30–32 billion, a direct M&A bid narrative that can justify a sizable takeover premium and is the primary driver of today’s rally. Merck in talks (WSJ)
• Positive Sentiment: Takeover buzz broadened as media reported additional suitors and renewed buyout interest (markets often bid target stocks higher on competing-acquirer speculation). Takeover buzz, another suitor emerges (Barron’s)
• Positive Sentiment: FDA granted Breakthrough Therapy Designation to zoldonrasib for KRAS G12D-mutant NSCLC — a substantive clinical/regulatory win that strengthens RVMD’s strategic value to acquirers and supports a higher acquisition valuation. Breakthrough Therapy Designation (GlobeNewswire)
• Positive Sentiment: Unusual options activity — a large spike in call buying — indicates aggressive bullish/speculative positioning by traders ahead of or on takeover rumors, amplifying short-term upside momentum. (market reports)
• Neutral Sentiment: The stock experienced a temporary LULD (limit up/limit down) pause during trading, a procedural volatility-control measure that often accompanies sudden price moves but does not change fundamentals.
• Negative Sentiment: Earlier takeover reports referenced AbbVie interest but AbbVie publicly denied talks, which previously triggered volatility and a pullback — a reminder that rumor-driven moves can reverse if potential bidders decline to engage. AbbVie denies talks (Barron’s)
• Negative Sentiment: Revolution remains a loss-making biotech (recent quarterly EPS missed estimates), so absent a takeover premium the stock’s valuation relies on successful late-stage clinical outcomes and eventual commercialization. (company filings/earnings)

Analyst Ratings Changes

Several research analysts have recently commented on the company. JPMorgan Chase & Co. boosted their price target on Revolution Medicines from $71.00 to $82.00 and gave the stock an “overweight” rating in a research report on Thursday, November 6th. 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 research report on Thursday, November 6th. Raymond James Financial increased their target price on shares of Revolution Medicines from $72.00 to $76.00 and gave the company a “strong-buy” rating in a research report on Friday, October 17th. Royal Bank Of Canada began coverage on shares of Revolution Medicines in a report on Monday, November 3rd. They issued an “outperform” rating and a $77.00 price target on the stock. Finally, Wolfe Research began coverage on Revolution Medicines in a research report on Tuesday, November 18th. They set an “outperform” rating and a $75.00 price target on the stock. Four analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $78.94.

Revolution Medicines Stock Performance

The stock has a market capitalization of $22.94 billion, a price-to-earnings ratio of -22.95 and a beta of 0.99. The company has a current ratio of 8.05, a quick ratio of 8.05 and a debt-to-equity ratio of 0.16. The firm has a 50-day moving average of $76.36 and a 200-day moving average of $53.98.

Revolution Medicines (NASDAQ:RVMD) last issued its quarterly earnings results on Wednesday, November 5th. The company reported ($1.61) EPS for the quarter, missing analysts’ consensus estimates of ($1.39) by ($0.22). During the same period in the prior year, the business earned ($0.94) earnings per share. As a group, sell-side analysts predict that Revolution Medicines, Inc. will post -3.49 earnings per share for the current year.

Insider Buying and Selling at Revolution Medicines

In other news, COO Margaret A. Horn sold 75,000 shares of the stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $100.56, for a total value of $7,542,000.00. Following the sale, the chief operating officer owned 141,053 shares in the company, valued at $14,184,289.68. This represents a 34.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jack Anders sold 10,000 shares of the business’s stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $98.00, for a total transaction of $980,000.00. Following the transaction, the chief financial officer owned 108,065 shares of the company’s stock, valued at $10,590,370. This represents a 8.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 268,792 shares of company stock valued at $20,971,240. 8.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Revolution Medicines

A number of hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC raised its stake in shares of Revolution Medicines by 45.1% during the 3rd quarter. GAMMA Investing LLC now owns 837 shares of the company’s stock worth $39,000 after buying an additional 260 shares during the period. CWM LLC lifted its holdings in 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 purchasing an additional 579 shares in the last quarter. a16z Perennial Management L.P. acquired a new stake in shares of Revolution Medicines in the second quarter valued at about $67,000. AlphaQuest LLC purchased a new stake in shares of Revolution Medicines during the second quarter worth about $73,000. Finally, Danske Bank A S purchased a new stake in shares of Revolution Medicines during the third quarter worth about $98,000. Hedge funds and other 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.