Margaret A. Horn, the Chief Operating Officer of Revolution Medicines, Inc. (NASDAQ:RVMD), recently executed a significant stock transaction, according to a recent SEC filing. On October 11, Horn sold 50,000 shares of the company's common stock at an average price of $50.3411 per share, totaling approximately $2.52 million.
In addition to the sale, Horn exercised stock options to acquire 44,631 shares and 5,369 shares of common stock, both at a price of $4.09 per share. These transactions were conducted under a 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell company stock.
Following these transactions, Horn holds 132,320 shares of Revolution Medicines, including 77,300 restricted stock units. Revolution Medicines, based in Redwood (NYSE:RWT) City, California, is a biotechnology company focused on developing targeted therapies for cancer.
In other recent news, Revolution Medicines reported an earnings per share (EPS) loss of $0.81, closely aligning with the consensus estimate of a $0.77 loss. The company anticipates a net loss between $560 million and $600 million for the full year 2024, an increase from previous estimates. This adjustment is attributed to the acceleration of the Phase 2 trial for pancreatic ductal adenocarcinoma (PDAC), commercial supply scaling, and the exploration of earlier lines of treatment for PDAC.
In terms of stock ratings, Oppenheimer maintained its Outperform rating on Revolution, Piper Sandler reiterated an Overweight rating, and Needham maintained a Buy rating. The ratings were influenced by the promising results of Revolution's drug candidate, RMC-6236, in treating PDAC with G12X mutations.
Several firms, including H.C. Wainwright, JPMorgan (NYSE:JPM), Oppenheimer, BofA Securities, Jefferies, and Stifel, have revised their price targets for Revolution following these promising results. The drug demonstrated notably higher disease control rates and a longer duration of clinical benefit compared to other treatments.
The company's progress in developing treatments for non-small cell lung cancer (NSCLC) continues to be a point of interest for investors. The forthcoming Phase I data for RMC-6236 is anticipated to provide an initial view on the progression-free survival of patients treated in the second line setting for NSCLC. These are the recent developments in Revolution Medicine's ongoing pursuit of effective treatments for challenging cancer types.
InvestingPro Insights
Revolution Medicines (NASDAQ:RVMD) has been experiencing significant market momentum, as evidenced by its strong performance metrics. According to InvestingPro data, the company's stock has seen a remarkable 64.56% price total return over the past year, with an even more impressive 71.62% year-to-date return. This aligns with an InvestingPro Tip indicating that RVMD has had a "high return over the last year."
The recent insider sale by COO Margaret A. Horn comes at a time when the stock is trading near its 52-week high, with the current price at 96.06% of its peak. This positioning is highlighted by another InvestingPro Tip, which notes that RVMD is "trading near 52-week high."
Despite the positive stock performance, it's important for investors to consider the company's financial health. An InvestingPro Tip points out that Revolution Medicines "holds more cash than debt on its balance sheet," which could provide financial flexibility as the company continues its biotechnology research and development efforts.
For those interested in a deeper analysis, InvestingPro offers additional insights, with 7 more tips available for Revolution Medicines. These tips could provide valuable context for understanding the company's financial position and future prospects in the competitive biotechnology sector.
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