Arcus Biosciences, Inc. (NYSE:RCUS) has received a consensus recommendation of “Moderate Buy” from twelve brokerages currently covering the company, according to MarketBeat. This assessment is based on the latest analyses from various financial institutions, which indicate a mix of ratings that include one “sell,” three “hold,” and eight “buy” recommendations.
The average 12-month price target for Arcus Biosciences shares is set at approximately $30.20. Recently, several analysts provided updates on the stock. On February 12, 2024, Wells Fargo & Company set a price target of $23.00 and assigned an “equal weight” rating. Citigroup increased its price objective from $44.00 to $45.00, maintaining a “buy” rating on the same day.
In a report dated March 2, 2024, HC Wainwright reiterated a “buy” rating and established a target price of $32.00. Furthermore, on January 21, Weiss Ratings restated a less favorable “sell (d-)” rating. This array of ratings reflects a cautious optimism among analysts regarding the company’s future performance.
Quarterly Earnings Report and Stock Performance
Arcus Biosciences recently released its quarterly earnings data on February 25, 2024. The company reported earnings per share (EPS) of ($0.89), surpassing analysts’ consensus estimate of ($1.11) by $0.22. Despite this positive surprise, the company faced a negative return on equity of 65.77% and a troubling negative net margin of 142.91%.
During the quarter, Arcus generated revenue of $33.00 million, exceeding the consensus estimate of $24.94 million. However, this figure represents an 8.3% decline compared to the same quarter in the previous year when the company reported an EPS of ($1.03). Analysts project that Arcus Biosciences will achieve an EPS of ($3.15) for the current year, indicating ongoing challenges ahead.
Insider Trading Activity
In related news, significant insider trading has been reported at Arcus Biosciences. On December 18, 2023, Chief Accounting Officer Alexander Azoy sold 4,343 shares at an average price of $22.25, totaling $96,631.75. Following this transaction, Azoy retained 18,531 shares valued at approximately $412,314.75, marking an 18.99% reduction in his holdings.
Additionally, Chief Financial Officer Robert C. Goeltz II sold 6,552 shares on December 31, 2023, at an average price of $23.38, resulting in a total transaction value of $153,185.76. After this sale, Goeltz holds 67,924 shares valued at about $1,588,063.12, reflecting an 8.80% decrease in his position.
In the last ninety days, insiders have sold a total of 180,990 shares valued at $3,974,764. Company insiders now own 9.60% of the company’s stock.
Institutional Investor Movements
Recent activity among institutional investors and hedge funds indicates a shift in ownership of Arcus Biosciences shares. GAMMA Investing LLC increased its stake by 59.1% in the third quarter, acquiring an additional 1,021 shares, bringing its total to 2,748 shares valued at $37,000.
Similarly, Hantz Financial Services Inc. raised its position by 121.9% during the fourth quarter, now holding 1,604 shares valued at $38,000. Another notable increase came from SBI Securities Co. Ltd., which expanded its holdings by an astonishing 13,547.6% in the third quarter, now owning 2,866 shares worth $39,000.
The trend continues with T. Rowe Price Investment Management Inc., which purchased a new position valued at approximately $39,000 in the fourth quarter, and CWM LLC, which increased its position by 233.6% in the second quarter, bringing its total to 5,441 shares valued at $44,000. Overall, institutional investors now hold 92.89% of Arcus Biosciences stock.
Arcus Biosciences operates as a clinical-stage biopharmaceutical company, focusing on developing innovative cancer immunotherapies. Its research aims to enhance immune responses against tumors through various mechanisms, including modulating tumor microenvironments and immune checkpoints. The company’s lead programs involve etrumadenant, an A2A adenosine receptor antagonist, and domvanalimab, an anti-TIGIT monoclonal antibody.
The recent movements in brokerage ratings, insider trading, and institutional investments suggest a period of significant activity for Arcus Biosciences, reflecting the ongoing interest in its potential within the biopharmaceutical landscape.
