Arcus Biosciences (NYSE:RCUS) Trading Down 5.8% – Should You Sell?

Arcus Biosciences, Inc. (NYSE:RCUS) shares were down 5.8% during mid-day trading on Thursday . The stock traded as low as $23.13 and last traded at $23.1370. Approximately 245,993 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 1,646,836 shares. The stock had previously closed at $24.56.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Truist Financial set a $30.00 price objective on shares of Arcus Biosciences in a report on Friday, December 12th. The Goldman Sachs Group upgraded Arcus Biosciences from a “neutral” rating to a “buy” rating and raised their price target for the company from $16.00 to $28.00 in a research note on Monday. HC Wainwright upped their price objective on Arcus Biosciences from $28.00 to $32.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Bank of America increased their price objective on Arcus Biosciences from $17.00 to $26.00 and gave the company a “neutral” rating in a report on Friday, November 28th. Finally, Morgan Stanley restated an “equal weight” rating and set a $20.00 target price (down previously from $23.00) on shares of Arcus Biosciences in a research note on Thursday, January 8th. Eight research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $30.00.

Arcus Biosciences Price Performance

The firm has a market capitalization of $2.36 billion, a PE ratio of -6.35 and a beta of 0.77. The company has a current ratio of 3.65, a quick ratio of 3.65 and a debt-to-equity ratio of 0.22. The company has a fifty day moving average price of $22.87 and a two-hundred day moving average price of $16.03.

Arcus Biosciences (NYSE:RCUS) last released its quarterly earnings results on Tuesday, October 28th. The company reported ($1.27) EPS for the quarter, topping the consensus estimate of ($1.33) by $0.06. The company had revenue of $26.00 million for the quarter, compared to analyst estimates of $19.89 million. Arcus Biosciences had a negative return on equity of 68.17% and a negative net margin of 136.40%.The firm’s revenue was down 45.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($1.00) earnings per share. Sell-side analysts forecast that Arcus Biosciences, Inc. will post -3.15 earnings per share for the current year.

Insider Transactions at Arcus Biosciences

In other news, General Counsel Carolyn C. Tang sold 6,810 shares of the company’s stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $22.16, for a total value of $150,909.60. Following the completion of the sale, the general counsel directly owned 124,734 shares of the company’s stock, valued at approximately $2,764,105.44. This represents a 5.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Alexander Azoy sold 4,343 shares of the stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $22.25, for a total transaction of $96,631.75. Following the sale, the chief accounting officer owned 18,531 shares of the company’s stock, valued at $412,314.75. This trade represents a 18.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 422,060 shares of company stock worth $9,286,202 over the last 90 days. Company insiders own 9.60% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of RCUS. Vanguard Group Inc. increased its holdings in shares of Arcus Biosciences by 1.1% in the third quarter. Vanguard Group Inc. now owns 6,629,453 shares of the company’s stock valued at $90,161,000 after purchasing an additional 73,210 shares during the period. Geode Capital Management LLC increased its stake in Arcus Biosciences by 14.9% in the 2nd quarter. Geode Capital Management LLC now owns 1,596,329 shares of the company’s stock valued at $12,995,000 after buying an additional 207,097 shares during the period. Bank of America Corp DE raised its position in Arcus Biosciences by 173.5% during the 3rd quarter. Bank of America Corp DE now owns 1,360,781 shares of the company’s stock worth $18,507,000 after buying an additional 863,162 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of Arcus Biosciences by 35.3% in the 3rd quarter. Wellington Management Group LLP now owns 1,266,289 shares of the company’s stock worth $17,222,000 after acquiring an additional 330,268 shares during the period. Finally, Sofinnova Investments Inc. boosted its holdings in shares of Arcus Biosciences by 17.2% in the second quarter. Sofinnova Investments Inc. now owns 1,216,016 shares of the company’s stock valued at $9,898,000 after acquiring an additional 178,240 shares in the last quarter. 92.89% of the stock is currently owned by hedge funds and other institutional investors.

Arcus Biosciences Company Profile

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel cancer immunotherapies. The company’s research platform centers on modulating tumor microenvironments and immune checkpoints through both small-molecule and antibody-based candidates. Arcus aims to enhance antitumor immune responses by targeting pathways such as the adenosine axis and inhibitory receptors on immune cells.

The company’s lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist being evaluated in combination with anti-PD-1 therapy, and domvanalimab, an anti-TIGIT monoclonal antibody.