Revolution Medicines COO sells more than $191,000 in the company’s stock by Investing.com

In a recent transaction, Margaret A. Horn, Chief Operating Officer of Revolution Medicines, Inc. (NASDAQ:RVMD), sold 4,331 shares of the company’s common stock. The transaction took place on September 16, 2024 and was executed at an average price of $44.1853 per share, resulting in a total value of $191,366.

The sale was made under a predetermined 10b5-1 trading plan, which allows company insiders to set a predetermined schedule for buying and selling stock at a time when they do not have material non-public information. This plan was adopted by Horn on May 31, 2023, to manage the withholding tax obligations related to the payment of restricted stock units (RSUs).

Following this transaction, Margaret Horn’s direct ownership of Revolution Medicines includes 132,320 shares. It is important to note that this amount incorporates 77,300 RSUs as indicated in the footnotes to the filing.

Investors often monitor insider trading because it can provide information about executives’ confidence in the company’s prospects. However, it is also common for executives to sell shares for personal financial planning, diversification or liquidity reasons, which do not necessarily indicate their view of the company’s future performance.

Revolution Medicines is a Redwood (NYSE:) City, California-based biotechnology company specializing in the development of new therapies for cancer and other serious diseases.

In other recent news, Revolution Medicines has made significant progress with its cancer drug, RMC-6236. Piper Sandler reaffirmed its Overweight rating on the company, highlighting the drug’s superior efficacy in treating pancreatic ductal adenocarcinoma (PDAC) with G12X mutations. The firms’ confidence was bolstered by data from the European Society for Medical Oncology conference, which showed RMC-6236’s high rates of disease control and longer duration of clinical benefit.

Needham adjusted its price target on Revolution to $61 following the company’s second-quarter earnings report, which revealed an EPS loss of $0.81, closely in line with consensus estimates. The company also provided revised guidance for 2024, now anticipating a net loss of between $560 million and $600 million due to increased research and development costs.

Analysts TD Cowen and HC Wainwright maintained their Buy ratings on Revolution, citing RMC-6236’s promising potential. Other firms, including JPMorgan, Oppenheimer, BofA Securities, Jefferies and Stifel, also revised their price targets for Revolution following these developments. These are all recent developments in the company’s search for effective treatments for challenging cancers.

InvestingPro Insights

Revolution Medicines, Inc. (NASDAQ:RVMD) has seen significant activity from its COO recently, which could draw investors’ attention to the company’s financial health and stock performance. In light of this fact, InvestingPro provides some information about the company’s current financial situation and market activity.

In the trailing twelve months leading up to Q2 2024, Revolution Medicines has a market cap of about $7.38 billion. Despite challenging market conditions, the company has delivered robust returns over the past three months, with a total price return of 16.04% and an even more impressive six-month total price return of 41.47%. This growth is reflected in the stock’s performance, trading at 90.64% of its 52-week high with a previous close of $43.77.

InvestingPro Tips suggests that Revolution Medicines has more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, the company’s liquid assets exceed short-term liabilities, indicating a strong liquidity position that may reassure investors about its ability to meet short-term obligations.

On the other hand, analysts have revised down their earnings for the next period and do not anticipate that the company will be profitable this year. This aligns with the company’s negative gross profit margin, which stands at an unusual -56628.03% for the trailing twelve months to Q2 2024, highlighting the company’s struggles to maintain profitability in its operations.

For investors seeking a deeper dive into Revolution Medicines’ stock and financial performance, InvestingPro provides additional information and metrics. There are 9 more InvestingPro tips available at https://www.investing.com/pro/RVMD that provide comprehensive analysis that could help investors make informed decisions.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.