Arcus Biosciences (NYSE:RCUS) Stock Price Down 4.9% – Should You Sell?

Arcus Biosciences, Inc. (NYSE:RCUS) traded down 4.9% during trading on Wednesday. The company traded as low as $22.94 and last traded at $22.5750. 278,770 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 1,322,284 shares. The stock had previously closed at $23.75.

Arcus Biosciences News Summary

Here are the key news stories impacting Arcus Biosciences this week:

• Positive Sentiment: Wedbush raised its price target to $49 from $43 and upgraded its view to “outperform,” implying substantial upside from recent trading levels. Truist Financial also increased its target to $41 from $40 and assigned a “buy” rating.
• Positive Sentiment: New ARC-20 data showed casdatifan activity across first-line, second-line and later-line clear cell renal cell carcinoma. The drug’s combinations delivered competitive or superior progression-free survival and response rates versus historical benchmarks, with manageable safety reported. This supports the potential for casdatifan to become a foundational treatment across multiple lines of therapy. ARC-20 casdatifan data
• Positive Sentiment: Analysts reacted favorably to the kidney-cancer results, helping Arcus shares increase during the prior session after an initially negative reaction to the data. Analysts cheer ARC-20 data
• Neutral Sentiment: The data are encouraging but remain clinical-stage evidence; further trials, regulatory review and commercial execution will be required before the opportunity is validated.
• Negative Sentiment: Arcus trades at a demanding valuation—approximately 22.5 times trailing sales and 37.9 times forward sales—leaving the stock vulnerable to setbacks in casdatifan’s development. Casdatifan valuation analysis
• Negative Sentiment: Investors are also bracing for potentially negative third-quarter earnings, with expectations pointing to another loss and no clear indication of an earnings beat. Arcus earnings outlook

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on RCUS. Cantor Fitzgerald restated an “overweight” rating on shares of Arcus Biosciences in a report on Friday, September 11th. Wedbush lifted their target price on Arcus Biosciences from $43.00 to $49.00 and gave the stock an “outperform” rating in a report on Wednesday. HC Wainwright lifted their target price on Arcus Biosciences from $32.00 to $45.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Weiss Ratings restated a “sell (d-)” rating on shares of Arcus Biosciences in a research note on Thursday, October 15th. Finally, Truist Financial upped their price target on Arcus Biosciences from $40.00 to $41.00 and gave the company a “buy” rating in a report on Wednesday. Twelve analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $39.18.

Arcus Biosciences Stock Performance

The company has a market capitalization of $2.65 billion, a P/E ratio of -5.39 and a beta of 0.94. The business has a 50-day moving average of $26.73 and a 200-day moving average of $26.25. The company has a debt-to-equity ratio of 0.22, a current ratio of 3.82 and a quick ratio of 3.82.

Arcus Biosciences (NYSE:RCUS) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.72) EPS for the quarter, beating the consensus estimate of ($0.89) by $0.17. Arcus Biosciences had a negative return on equity of 89.54% and a negative net margin of 393.16%. The firm had revenue of $41.00 million for the quarter, compared to analyst estimates of $21.98 million. The business’s quarterly revenue was down 74.4% on a year-over-year basis. On average, sell-side analysts anticipate that Arcus Biosciences, Inc. will post -3.55 EPS for the current year.

Insider Transactions at Arcus Biosciences

In related news, CAO Alexander Azoy sold 2,827 shares of Arcus Biosciences stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $30.00, for a total transaction of $84,810.00. Following the transaction, the chief accounting officer owned 39,581 shares in the company, valued at approximately $1,187,430. This trade represents a 6.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 7.60% of the company’s stock.

Hedge Funds Weigh In On Arcus Biosciences

A number of institutional investors and hedge funds have recently made changes to their positions in RCUS. BlackRock Inc. acquired a new stake in shares of Arcus Biosciences in the 2nd quarter valued at $506,113,000. Parkman Healthcare Partners LLC acquired a new position in shares of Arcus Biosciences during the second quarter worth $28,341,000. Bank of America Corp DE purchased a new position in Arcus Biosciences in the second quarter valued at $25,759,000. Bank of New York Mellon Corp purchased a new position in Arcus Biosciences in the second quarter valued at $16,741,000. Finally, Renaissance Technologies LLC raised its stake in Arcus Biosciences by 1,198.8% in the first quarter. Renaissance Technologies LLC now owns 424,700 shares of the company’s stock valued at $9,174,000 after buying an additional 392,000 shares in the last quarter. 92.89% of the stock is owned by institutional investors and hedge funds.

About Arcus Biosciences

Arcus Biosciences, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for cancer and other serious diseases. The company uses its research platform to discover and advance medicines designed to target immune suppression and other biological mechanisms involved in tumor growth.

Arcus’s oncology pipeline has included antibody-based and small-molecule therapies aimed at targets such as TIGIT, PD-1, CD73, and the adenosine A2A and A2B receptors. Its key development programs have included domvanalimab, zimberelimab, quemliclustat, and etrumadenant, which have been evaluated in clinical studies across several cancer types, including lung, gastrointestinal, and colorectal cancers.

Founded in 2015 and headquartered in Hayward, California, Arcus conducts research and clinical-development activities intended to support potential commercialization in international markets.