Revolution Medicines (NASDAQ:RVMD) Shares Gap Down Following Weak Earnings

Shares of Revolution Medicines, Inc. (NASDAQ:RVMD) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $103.24, but opened at $95.47. Revolution Medicines shares last traded at $99.8470, with a volume of 336,331 shares traded.

The company reported ($1.86) EPS for the quarter, missing the consensus estimate of ($1.56) by ($0.30). During the same quarter last year, the firm earned ($1.12) EPS.

Analyst Ratings Changes

Several brokerages have issued reports on RVMD. Benchmark reaffirmed an “overweight” rating on shares of Revolution Medicines in a research note on Tuesday, February 17th. Royal Bank Of Canada initiated coverage on Revolution Medicines in a report on Monday, November 3rd. They issued an “outperform” rating and a $77.00 price objective for the company. UBS Group raised Revolution Medicines to a “strong-buy” rating in a research report on Thursday, December 4th. Wedbush restated an “outperform” rating on shares of Revolution Medicines in a report on Friday, January 9th. Finally, Wolfe Research assumed coverage on shares of Revolution Medicines in a report on Tuesday, November 18th. They issued an “outperform” rating and a $75.00 target price for the company. Five analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $78.94.

Insider Buying and Selling at Revolution Medicines

In other news, CFO Jack Anders sold 10,000 shares of the business’s stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $98.00, for a total value of $980,000.00. Following the sale, the chief financial officer directly owned 108,065 shares in the company, valued at $10,590,370. The trade was a 8.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Stephen Michael Kelsey sold 5,447 shares of the stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $76.82, for a total transaction of $418,438.54. Following the completion of the transaction, the insider directly owned 278,600 shares of the company’s stock, valued at approximately $21,402,052. The trade was a 1.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 113,792 shares of company stock worth $10,734,640. Company insiders own 8.20% of the company’s stock.

Institutional Investors Weigh In On Revolution Medicines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nextech Invest Ltd. boosted its holdings in shares of Revolution Medicines by 20.7% in the 4th quarter. Nextech Invest Ltd. now owns 7,601,087 shares of the company’s stock worth $332,472,000 after purchasing an additional 1,304,347 shares during the period. Millennium Management LLC boosted its stake in Revolution Medicines by 681.8% during the first quarter. Millennium Management LLC now owns 156,353 shares of the company’s stock worth $5,529,000 after buying an additional 136,353 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Revolution Medicines by 14.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 300,196 shares of the company’s stock worth $10,615,000 after buying an additional 37,345 shares during the period. CWM LLC increased its position 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 acquiring an additional 579 shares during the last quarter. Finally, AlphaQuest LLC purchased a new stake in shares of Revolution Medicines in the second quarter valued at $73,000. 94.34% of the stock is currently owned by hedge funds and other institutional investors.

Revolution Medicines Trading Down 2.7%

The company has a quick ratio of 8.05, a current ratio of 8.05 and a debt-to-equity ratio of 0.16. The company’s 50 day moving average price is $98.19 and its two-hundred day moving average price is $69.66. The firm has a market cap of $19.42 billion, a PE ratio of -19.40 and a beta of 1.01.

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.