Arcus Biosciences, Inc. (NYSE: RCUS) has garnered an average rating of “Moderate Buy” from eleven brokerage firms currently covering the company, as reported by MarketBeat. This consensus includes one firm issuing a sell rating, two recommending a hold, and eight advocating for a buy. The average twelve-month price target among these analysts is set at $30.00.
Recent evaluations from various analysts highlight differing perspectives on Arcus’s stock. Notably, HC Wainwright raised its price target from $28.00 to $32.00 while maintaining a “buy” rating. This adjustment was communicated in a research note dated December 12, 2023. In a contrasting view, Morgan Stanley reiterated an “equal weight” rating but lowered its price target from $23.00 to $20.00 in a report released on January 8, 2024.
Wells Fargo & Company also increased its price target, moving it from $25.00 to $29.00, categorizing the stock as “overweight” in a report from October 20, 2023. Meanwhile, Weiss Ratings reaffirmed a “sell (d-)” rating in a publication from January 21, 2024. UBS Group confirmed its “buy” rating on December 15, 2023, demonstrating confidence in the company’s potential.
In its most recent earnings report, released on November 5, 2023, Arcus Biosciences reported earnings per share (EPS) of ($1.27), slightly surpassing the consensus estimate of ($1.28). The company experienced a significant decline, with quarterly revenue down 45.8% compared to the same period last year. Its negative net margin stood at 136.40%, and the return on equity was reported at –68.17%. Analysts project a further decline in EPS, estimating (–3.15) for the current year.
Insider Transactions and Institutional Activity
Recent insider activity reveals that General Counsel Carolyn C. Tang sold 6,810 shares on December 17, 2023, at an average price of $22.16, amounting to a total value of $150,909.60. After this transaction, Tang retains 124,734 shares valued at approximately $2,764,105.44. This sale represented a 5.18% reduction in her stake.
Additionally, insider Richard Markus sold 4,494 shares on the same day for a total of $99,587.04, decreasing his position by 6.41%. In total, insiders have sold approximately 315,887 shares worth $7,087,692 in the last quarter, indicating a trend among company insiders to reduce their holdings. Currently, insiders own 9.60% of Arcus Biosciences.
Institutional investors have also been active, with Vanguard Group Inc. increasing its stake by 20.1% during the fourth quarter. Following this move, Vanguard now owns 7,962,874 shares valued at $189,755,000. Other significant institutional investors include Geode Capital Management LLC, which raised its holdings by 14.9%, and Bank of America Corp DE, which increased its stake by an impressive 173.5% during the last quarter, now owning 1,360,781 shares valued at $18,507,000.
Overall, institutional investors hold a significant 92.89% of Arcus Biosciences, reflecting a strong confidence in the company’s future prospects.
Company Overview
Arcus Biosciences is a clinical-stage biopharmaceutical organization focused on developing innovative cancer immunotherapies. The company’s research primarily targets the modulation of tumor microenvironments and immune checkpoints through small molecules and antibody-based therapies. Key projects include etrumadenant, an oral A2A adenosine receptor antagonist, and domvanalimab, an anti-TIGIT monoclonal antibody, both aimed at enhancing anti-tumor immune responses.
As Arcus Biosciences continues to navigate the complexities of the biopharmaceutical landscape, its performance in the market, along with insider transactions and institutional investments, will be crucial indicators of its future success.
