Revolution Medicines (NASDAQ:RVMD) Shares Gap Down on Disappointing Earnings

Revolution Medicines, Inc. (NASDAQ:RVMD) shares 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 changing hands.

The company reported ($1.86) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.56) by ($0.30). During the same quarter last year, the business posted ($1.12) EPS.

Analysts Set New Price Targets

RVMD has been the subject of several recent analyst reports. Evercore upgraded Revolution Medicines to a “strong-buy” rating in a research note on Wednesday. HC Wainwright raised their price target on shares of Revolution Medicines from $72.00 to $73.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. Royal Bank Of Canada began coverage on shares of Revolution Medicines in a research report on Monday, November 3rd. They set an “outperform” rating and a $77.00 price objective for the company. JPMorgan Chase & Co. raised their target price on shares of Revolution Medicines from $71.00 to $82.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Finally, Wedbush reissued an “outperform” rating on shares of Revolution Medicines in a report on Friday, January 9th. Five analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Revolution Medicines currently has a consensus rating of “Buy” and an average price target of $78.94.

Insider Activity at Revolution Medicines

In other news, COO Margaret A. Horn sold 75,000 shares of Revolution Medicines stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $100.56, for a total transaction of $7,542,000.00. Following the completion of the transaction, the chief operating officer directly owned 141,053 shares in the company, valued at $14,184,289.68. This trade represents a 34.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Stephen Michael Kelsey sold 5,447 shares of the business’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $76.82, for a total transaction of $418,438.54. Following the sale, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 113,792 shares of company stock worth $10,734,640. 8.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Revolution Medicines

Hedge funds have recently added to or reduced their stakes in the stock. Invesco Ltd. raised its stake in shares of Revolution Medicines by 83.1% in the fourth quarter. Invesco Ltd. now owns 367,851 shares of the company’s stock worth $29,299,000 after purchasing an additional 166,909 shares during the last quarter. Corient Private Wealth LLC purchased a new stake in Revolution Medicines in the 4th quarter valued at $215,000. ADAR1 Capital Management LLC raised its position in Revolution Medicines by 4.3% in the 4th quarter. ADAR1 Capital Management LLC now owns 145,079 shares of the company’s stock valued at $11,556,000 after buying an additional 5,943 shares during the last quarter. Empowered Funds LLC bought a new position in Revolution Medicines during the 4th quarter valued at $77,000. Finally, KVP Capital Advisors LP purchased a new position in Revolution Medicines during the 4th quarter worth $2,190,000. Institutional investors and hedge funds own 94.34% of the company’s stock.

Revolution Medicines Stock Performance

The company’s 50 day moving average price is $98.19 and its 200-day moving average price is $69.66. The stock has a market cap of $19.42 billion, a P/E ratio of -19.40 and a beta of 1.01. The company has a debt-to-equity ratio of 0.16, a quick ratio of 8.05 and a current ratio of 8.05.

About Revolution Medicines

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.