Arcus Biosciences, Inc. (NYSE:RCUS) has garnered an average recommendation of “Moderate Buy” from eleven brokerage firms currently covering the stock, according to data from MarketBeat. The assessment reflects a diverse set of ratings, with one analyst issuing a sell rating, two recommending a hold, and eight advising a buy. The consensus twelve-month price target among these brokerages stands at $30.00.
Recent commentary from equity analysts indicates a positive outlook for Arcus. On December 12, 2023, HC Wainwright revised its price objective for the stock from $28.00 to $32.00, maintaining a buy rating. Similarly, Wells Fargo & Company increased its price target from $25.00 to $29.00 on October 20, 2023, while designating the stock as overweight. In contrast, Weiss Ratings reaffirmed a sell rating with a grade of D- on January 21, 2023. Morgan Stanley also adjusted its rating to equal weight, reducing its price objective from $23.00 to $20.00 on January 8, 2023. UBS Group reiterated a buy rating on December 15, 2023.
The company’s recent earnings report, released on November 5, 2023, showed Arcus reporting a loss of ($1.27) earnings per share, slightly beating the consensus estimate of ($1.28). Arcus recorded a negative net margin of 136.40% and a negative return on equity of 68.17%. This marked an increase in losses compared to the same period last year, when the company reported ($1.00) earnings per share. Furthermore, quarterly revenue fell by 45.8% compared to the previous year, prompting analysts to anticipate earnings per share of ($3.15) for the current fiscal year.
In addition to analyst ratings, insider trading activity also drew attention. On December 17, 2023, General Counsel Carolyn C. Tang sold 6,810 shares at an average price of $22.16, totaling approximately $150,909.60. This sale reduced her holdings to 124,734 shares, valued at $2,764,105.44. Another insider, Richard Markus, sold 4,494 shares on the same day for around $99,587.04. Following these transactions, insiders have collectively sold 315,887 shares amounting to around $7,087,692 in the last quarter, with company insiders now owning 9.60% of the total stock.
Institutional investor activity has also played a significant role in the company’s stock performance. Vanguard Group Inc. increased its stake in Arcus Biosciences by 20.1% during the fourth quarter, now holding 7,962,874 shares valued at approximately $189,755,000. Geode Capital Management LLC raised its holdings by 14.9% during the second quarter, acquiring an additional 207,097 shares. Similarly, Bank of America Corp DE raised its stake by 173.5% during the third quarter, now owning 1,360,781 shares valued at $18,507,000.
Arcus Biosciences focuses on developing innovative cancer immunotherapies, leveraging its research platform to modulate tumor microenvironments and immune checkpoints. The company’s lead clinical programs include etrumadenant, an orally administered A2A adenosine receptor antagonist, and domvanalimab, an anti-TIGIT monoclonal antibody.
As the company navigates through these financial and operational developments, the market will be keenly observing its performance and the implications of analyst ratings on stock valuation in the coming months.
