Revolution Medicines (NASDAQ:RVMD) Announces Quarterly Earnings Results

Revolution Medicines (NASDAQ:RVMD) released its earnings results on Wednesday. The company reported ($2.29) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.83) by ($0.46), FiscalAI reports. During the same period in the previous year, the company posted ($1.13) EPS.

Here are the key takeaways from Revolution Medicines’ conference call:

• Daraxonrasib delivered an unprecedented benefit in RASolute 302, meeting primary and key secondary endpoints with a 60% reduction in risk of death versus chemotherapy and a median overall survival exceeding one year; the company intends to submit an NDA, has FDA approval to start an expanded access program, and will present detailed data in an ASCO plenary.
• The company significantly strengthened its balance sheet with an historic $2 billion dual-tranche capital raise and reported $1.9 billion in cash at quarter end (plus $2.1 billion net proceeds in April), positioning it to advance four clinical-stage RAS(ON) inhibitors and next-generation programs.
• Operating costs rose sharply—Q1 stock-based compensation was $87.3M (vs. $25.1M a year ago) after a program modification—and RevMed raised full-year stock-based comp guidance by ~$80M, now expecting GAAP operating expenses of $1.7 billion to $1.8 billion, contributing to a Q1 net loss of $453.8M.
• The development plan is broad: multiple registrational trials are underway or planned across pancreatic, NSCLC, and colorectal cancer (including expansions of RASolve 301 and initiation of RASolute 303/304/305/308/309), and early-stage programs like RM-055 (catalytic RAS(ON) inhibitor) and RMC-5127 are progressing toward first-in-human studies.

Revolution Medicines Price Performance

Shares of Revolution Medicines stock traded up $3.86 during trading hours on Wednesday, reaching $151.07. 2,945,056 shares of the company’s stock were exchanged, compared to its average volume of 4,575,561. Revolution Medicines has a 1 year low of $34.00 and a 1 year high of $155.70. The company has a market capitalization of $32.12 billion, a P/E ratio of -25.56 and a beta of 1.41. The business has a fifty day moving average of $111.71 and a two-hundred day moving average of $93.09. The company has a quick ratio of 7.14, a current ratio of 7.14 and a debt-to-equity ratio of 0.16.

Analyst Ratings Changes

Several research firms have recently issued reports on RVMD. Benchmark restated an “overweight” rating on shares of Revolution Medicines in a report on Tuesday, February 17th. Wedbush restated an “outperform” rating on shares of Revolution Medicines in a report on Tuesday, April 14th. HC Wainwright restated a “buy” rating on shares of Revolution Medicines in a report on Wednesday, April 22nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Revolution Medicines in a research report on Tuesday, April 21st. Finally, Stifel Nicolaus reaffirmed a “buy” rating on shares of Revolution Medicines in a research report on Monday, April 20th. Four research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $78.94.

Insider Buying and Selling at Revolution Medicines

In related news, COO Margaret A. Horn sold 4,583 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $99.48, for a total value of $455,916.84. Following the completion of the sale, the chief operating officer owned 157,570 shares of the company’s stock, valued at approximately $15,675,063.60. This represents a 2.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Mark A. Goldsmith sold 120,000 shares of the company’s stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $150.09, for a total transaction of $18,010,800.00. Following the completion of the sale, the insider directly owned 276,698 shares of the company’s stock, valued at $41,529,602.82. This represents a 30.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 184,592 shares of company stock valued at $24,499,532. 8.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RVMD. Nextech Invest Ltd. boosted its stake in Revolution Medicines by 20.7% during the fourth quarter. Nextech Invest Ltd. now owns 7,601,087 shares of the company’s stock worth $332,472,000 after buying an additional 1,304,347 shares during the period. Millennium Management LLC raised its holdings in Revolution Medicines by 681.8% in the first quarter. Millennium Management LLC now owns 156,353 shares of the company’s stock valued at $5,529,000 after acquiring an additional 136,353 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Revolution Medicines by 14.2% in 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 valued at $10,615,000 after acquiring an additional 37,345 shares in the last quarter. Invesco Ltd. raised its holdings in Revolution Medicines by 19.3% in the second quarter. Invesco Ltd. now owns 227,019 shares of the company’s stock valued at $8,352,000 after acquiring an additional 36,760 shares in the last quarter. Finally, Jump Financial LLC raised its holdings in Revolution Medicines by 87.9% in the second quarter. Jump Financial LLC now owns 15,258 shares of the company’s stock valued at $561,000 after acquiring an additional 7,137 shares in the last quarter. Hedge funds and other institutional investors own 94.34% of the company’s stock.

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.