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Here’s What Triggered the Rally in Revolution Medicines Stock

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As part of a public offering, corporate insiders bagged $6 million worth of RVMD stock last week. The activity spiked investors’ interest, and the stock has grown 8.7% since July 22.

On July 22, Thilo Schroeder and Lorence Kim, the Directors of Revolution Medicines, Inc. (NASDAQ: RVMD), bought shares of the company worth $6 million. This attracted investors’ attention and the shares of the clinical-stage oncology company rose about 8.7% (as of July 26) from the closing price of $22.35 on July 22.

As per an SEC filing, Schroeder and Kim lapped up 250,000 and 50,000 shares of the company, respectively, at $20 per share on July 22.

It is worth noting that Revolution Medicines had informed its stakeholders about the closing of a public offering on July 22. The offering included 13.225,000 shares of common stock at $20 per share, before underwriting discounts and commissions. The gross proceeds raised from the offering were $264.5 million. 

According to TipRanks, which also provides a comprehensive list of daily insider transactions, various corporate insiders bought and sold RVMD stock over the last month. Out of these transactions, a few uninformative Sell transactions, amounting to $59,623, have been recorded by TipRanks. A pictorial representation of these transactions is provided below:

Insider Confidence Signal is Neutral on RVMD

TipRanks’ Insider Trading Activity tool shows that insiders are currently Neutral on Revolution Medicines, as corporate insiders have sold RVMD shares worth $2.5 million in the last three months.

Interestingly, TipRanks also provides a list of hot stocks that boasts of either a Very Positive or Positive insider confidence signal.

Street Has a Strong Buy Rating on RVMD Stock

Overall, the Street is optimistic about the stock and has a Strong Buy consensus rating based on three Buys and one Hold. Revolution Medicines’ average price forecast of $32 signals that the stock may surge nearly 31.6% from current levels.

TipRanks data shows that hedge funds are Positive about the company, as they bought 500,000 shares of RVMD in the last quarter.

Key Takeaways for RVMD Investors

The recently raised funding will allow RVMD to increase its investments in developing targeted therapies for RAS-addicted cancers. Apart from this, the weak price of the stock, which has declined 17.9% in the past year, could be an opportunity for investors seeking handsome returns in the long run.

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