Revolution Medicines, Inc. (NASDAQ:RVMD) Given Average Recommendation of “Buy” by Analysts

Shares of Revolution Medicines, Inc. (NASDAQ:RVMD) have been assigned an average rating of “Buy” from the eighteen brokerages that are currently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, thirteen have given a buy rating and four have given a strong buy rating to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $78.9412.

Several research firms have weighed in on RVMD. Raymond James Financial boosted their price target on shares of Revolution Medicines from $72.00 to $76.00 and gave the stock a “strong-buy” rating in a research note on Friday, October 17th. Mizuho initiated coverage on Revolution Medicines in a report on Tuesday, October 21st. They issued an “outperform” rating and a $90.00 price objective on the stock. UBS Group upgraded Revolution Medicines to a “strong-buy” rating in a report on Thursday, December 4th. National Bankshares set a $80.00 price target on Revolution Medicines in a research report on Friday, October 17th. Finally, Wolfe Research assumed coverage on Revolution Medicines in a research note on Tuesday, November 18th. They issued an “outperform” rating and a $75.00 price target on the stock.

Insiders Place Their Bets

In related news, insider Mark A. Goldsmith sold 60,000 shares of the stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $75.08, for a total value of $4,504,800.00. Following the completion of the transaction, the insider directly owned 247,863 shares of the company’s stock, valued at $18,609,554.04. This represents a 19.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Margaret A. Horn sold 75,000 shares of the firm’s stock in a transaction dated Wednesday, January 7th. The stock was sold at an average price of $100.56, for a total transaction of $7,542,000.00. Following the completion of the sale, the chief operating officer owned 141,053 shares of the company’s stock, valued at $14,184,289.68. This trade represents a 34.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 243,792 shares of company stock worth $19,757,740 in the last quarter. 8.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. CWM LLC grew its stake in shares of Revolution Medicines by 171.3% in the second quarter. CWM LLC now owns 917 shares of the company’s stock worth $34,000 after acquiring an additional 579 shares during the last quarter. GAMMA Investing LLC grew its position in Revolution Medicines by 45.1% during the 3rd quarter. GAMMA Investing LLC now owns 837 shares of the company’s stock valued at $39,000 after purchasing an additional 260 shares during the last quarter. a16z Perennial Management L.P. purchased a new stake in Revolution Medicines during the 2nd quarter valued at about $67,000. AlphaQuest LLC bought a new stake in Revolution Medicines during the 2nd quarter valued at about $73,000. Finally, Danske Bank A S purchased a new position in Revolution Medicines in the third quarter worth about $98,000. Hedge funds and other institutional investors own 94.34% of the company’s stock.

Key Headlines Impacting Revolution Medicines

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: Reports that Merck is in talks to acquire Revolution Medicines for roughly $30–32 billion, a direct M&A bid narrative that can justify a sizable takeover premium and is the primary driver of today’s rally. Merck in talks (WSJ)
• Positive Sentiment: Takeover buzz broadened as media reported additional suitors and renewed buyout interest (markets often bid target stocks higher on competing-acquirer speculation). Takeover buzz, another suitor emerges (Barron’s)
• Positive Sentiment: FDA granted Breakthrough Therapy Designation to zoldonrasib for KRAS G12D-mutant NSCLC — a substantive clinical/regulatory win that strengthens RVMD’s strategic value to acquirers and supports a higher acquisition valuation. Breakthrough Therapy Designation (GlobeNewswire)
• Positive Sentiment: Unusual options activity — a large spike in call buying — indicates aggressive bullish/speculative positioning by traders ahead of or on takeover rumors, amplifying short-term upside momentum. (market reports)
• Neutral Sentiment: The stock experienced a temporary LULD (limit up/limit down) pause during trading, a procedural volatility-control measure that often accompanies sudden price moves but does not change fundamentals.
• Negative Sentiment: Earlier takeover reports referenced AbbVie interest but AbbVie publicly denied talks, which previously triggered volatility and a pullback — a reminder that rumor-driven moves can reverse if potential bidders decline to engage. AbbVie denies talks (Barron’s)
• Negative Sentiment: Revolution remains a loss-making biotech (recent quarterly EPS missed estimates), so absent a takeover premium the stock’s valuation relies on successful late-stage clinical outcomes and eventual commercialization. (company filings/earnings)

Revolution Medicines Stock Performance

NASDAQ:RVMD opened at $118.64 on Monday. The company has a market capitalization of $22.94 billion, a price-to-earnings ratio of -22.95 and a beta of 0.99. The business has a 50 day moving average of $76.36 and a 200 day moving average of $54.18. The company has a debt-to-equity ratio of 0.16, a current ratio of 8.05 and a quick ratio of 8.05. Revolution Medicines has a 1-year low of $29.17 and a 1-year high of $121.62.

Revolution Medicines (NASDAQ:RVMD) last posted its quarterly earnings results on Wednesday, November 5th. The company reported ($1.61) EPS for the quarter, missing the consensus estimate of ($1.39) by ($0.22). During the same period in the previous year, the firm earned ($0.94) EPS. On average, sell-side analysts predict that Revolution Medicines will post -3.49 earnings per share for the current fiscal year.

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.