Revolution Medicines Inc. (RVMD) shares are trading at lower $33.67 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $42.25.
To add more color to this target, the company’s high over the last year is $47.14 and the low is $17.34 while the S&P 500 is up 12.53%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, RVMD reported a profit of $38.01 million. Revolution Medicines Inc. also saw revenues increase to $10.03 million. In addition, RVMD has free cash flow of -$49.09 million as of 06-2020. The company’s EBITDA came in at -$26.23 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. RVMD has a short ratio of 7.84 and outstanding shares of 58.75M.
RVMD has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.31 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -21.25. Revolution Medicines Inc. RVMD also noted assets of $453.96 million at the end of the last quarter. Investors should also keep an eye on sector updates as RVMD has historically followed its peers on positive news.
All told, Revolution Medicines Inc. RVMD has strung together solid data and demonstrated underlying fundamentals. At its current valuation, RVMD represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Revolution Medicines Inc. RVMD is now commanding a market cap of 2.17B and a float of 43.70M. RVMD is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of RVMD stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in RVMD, either long or short, and we have not been compensated for this article.