Revolution Medicines Inc. (NASDAQ: RVMD) stock fell -0.15% on Monday to $27.48 against a previous-day closing price of $27.52. With 0.76 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.95 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $28.12 whereas the lowest price it dropped to was $27.15. The 52-week range on RVMD shows that it touched its highest point at $31.37 and its lowest point at $14.08 during that stretch. It currently has a 1-year price target of $29.56.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RVMD was down-trending over the past week, with a drop of -8.67%, but this was up by 23.95% over a month. Three-month performance surged to 55.43% while six-month performance rose 22.95%. The stock gained 18.14% in the past year, while it has gained 15.37% so far this year. A look at the trailing 12-month EPS for RVMD yields -3.18 with Next year EPS estimates of -3.61. For the next quarter, that number is -0.82. This implies an EPS growth rate of -27.80% for this year and -9.70% for next year.
Float and Shares Shorts:
At present, 88.79 million RVMD shares are outstanding with a float of 87.09 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.79 million, which was 11.17% higher than short shares on Sep 14, 2022. In addition to Dr. Mark A. Goldsmith Ph.D. as the firm’s CEO, Pres & Chairman, Mr. Jack Anders serves as its Chief Financial Officer.
Through their ownership of 90.40% of RVMD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.55% of RVMD, in contrast to 37.49% held by mutual funds. Shares owned by individuals account for 19.28%. As the largest shareholder in RVMD with 10.07% of the stake, Wellington Management Co. LLP holds 8,936,469 shares worth 8,936,469. A second-largest stockholder of RVMD, The Vanguard Group, Inc., holds 6,854,196 shares, controlling over 7.72% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in RVMD, holding 4,776,557 shares or 5.38% stake. With a 5.18% stake in RVMD, the BB Biotech AG is the largest stakeholder. A total of 4,602,562 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.80% of RVMD stock, is the second-largest Mutual Fund holder. It holds 2,487,653 shares valued at 59.26 million. SPDR S&P Biotech ETF holds 2.62% of the stake in RVMD, owning 2,329,597 shares worth 55.49 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RVMD since 10 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RVMD analysts setting a high price target of $38.00 and a low target of $20.00, the average target price over the next 12 months is $29.56. Based on these targets, RVMD could surge 38.28% to reach the target high and fall by -27.22% to reach the target low. Reaching the average price target will result in a growth of 7.57% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RVMD will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$3.14 being high and -$3.38 being low. For RVMD, this leads to a yearly average estimate of -$3.29. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Revolution Medicines Inc. surprised analysts by -$0.03 when it reported -$0.87 EPS against a consensus estimate of -$0.84. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.68 and the low estimate is -$0.90. The average estimate for the next quarter is thus -$0.82.
Summary of Insider Activity:
Insiders traded RVMD stock several times over the past three months with 0 Buys and 7 Sells. In these transactions, 0 shares were bought while 57,108 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 1,561,851 while 486,152 shares were sold.