Revolution Medicines Inc. (NASDAQ: RVMD) stock fell -2.61% on Monday to $30.93 against a previous-day closing price of $31.76. With 2.15 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.11 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $32.01 whereas the lowest price it dropped to was $30.71. The 52-week range on RVMD shows that it touched its highest point at $35.50 and its lowest point at $17.03 during that stretch. It currently has a 1-year price target of $34.33. Beta for the stock currently stands at 1.36.
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 -5.90%, but this was up by 5.60% over a month. Three-month performance surged to 25.63% while six-month performance rose 42.73%. The stock gained 49.56% in the past year, while it has gained 29.85% so far this year. A look at the trailing 12-month EPS for RVMD yields -3.14 with Next year EPS estimates of -3.46. For the next quarter, that number is -1.00. This implies an EPS growth rate of -20.00% for this year and 1.70% for next year.
Float and Shares Shorts:
At present, 109.17 million RVMD shares are outstanding with a float of 107.27 million shares on hand for trading. On Aug 30, 2023, short shares totaled 13.0 million, which was 11.90% higher than short shares on Jul 30, 2023. 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.
Other institutions hold 46.51% of RVMD, in contrast to 44.34% held by mutual funds. Shares owned by individuals account for 16.56%. As the largest shareholder in RVMD with 9.43% of the stake, Wellington Management Co. LLP holds 10,289,689 shares worth 10,289,689. A second-largest stockholder of RVMD, The Vanguard Group, Inc., holds 9,073,069 shares, controlling over 8.31% of the firm’s shares. EcoR1 Capital, LLC is the third largest shareholder in RVMD, holding 7,198,700 shares or 6.59% stake. With a 4.28% stake in RVMD, the BB Biotech AG is the largest stakeholder. A total of 4,675,000 shares are owned by the mutual fund manager. The Vanguard Health Care Fund, which owns about 3.64% of RVMD stock, is the second-largest Mutual Fund holder. It holds 3,968,987 shares valued at 134.83 million. Vanguard Total Stock Market ETF holds 2.70% of the stake in RVMD, owning 2,945,512 shares worth 100.06 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, RVMD reported revenue of $9.12M and operating income of -$62.09M. The EBITDA in the recently reported quarter was -$58.89M and diluted EPS was -$0.82.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RVMD since 0 analysts follow the stock currently. 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 $41.00 and a low target of $30.00, the average target price over the next 12 months is $35.00. Based on these targets, RVMD could surge 32.56% to reach the target high and fall by -3.01% to reach the target low. Reaching the average price target will result in a growth of 13.16% 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.
Summary of Insider Activity:
Insiders traded RVMD stock several times over the past three months with 2 Buys and 9 Sells. In these transactions, 15,000 shares were bought while 46,524 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 20 over the past year. The total number of shares bought during that period was 986,000 while 107,471 shares were sold.