Morgan Stanley Reduces Arcus Biosciences Price Target to $25.00

Arcus Biosciences (NYSE:RCUS) has recently seen its price target adjusted by Morgan Stanley, dropping from $36.00 to $25.00. This adjustment was mentioned in a research note published on Tuesday morning, according to reports. Despite this reduction, Morgan Stanley maintains an overweight rating on the stock, indicating a positive outlook compared to other stocks.

Other equity analysts have also provided their insights regarding Arcus Biosciences. Notably, Barclays increased their price target for the stock from $25.00 to $29.00 and reaffirmed an “overweight” rating in their report released on October 25th. Wedbush reiterated an “outperform” rating while setting a target price of $36.00 for the company's shares in their report on November 7th. In a different move, HC Wainwright reduced their target price from $20.00 to $18.00 and assigned a “neutral” rating to the stock on Tuesday. Overall, there’s been a mix of ratings, with one analyst recommending a hold, seven giving buy ratings, and one issuing a strong buy rating. According to MarketBeat, consensus analysis suggests a “Buy” rating for the stock, with an average price target of approximately $31.29.

Overview of Arcus Biosciences Stock Performance

As of Tuesday, Arcus Biosciences' stock opened at $11.00. The company has a fifty-day moving average of $14.28 and a 200-day moving average of $15.63. Currently, its market capitalization stands at about $1.01 billion, with a P/E ratio of -3.49 and a beta of 0.84. Over the past year, the stock has ranged from a low of $10.65 to a high of $20.31. Arcus has maintained strong liquidity with a quick and current ratio of 5.24, alongside a low debt-to-equity ratio of 0.08, indicating a solid financial position.

Insider Trading Activity

In terms of insider movements, CFO Robert C. Goeltz II sold 3,594 shares of Arcus Biosciences on December 31st, with the shares sold at an average price of $15.00, totaling around $53,910. Following this transaction, Goeltz possesses 60,138 shares of the company, equating to a value of approximately $902,070. This sale represents a 5.64% decrease in ownership for the CFO. The details of this transaction were disclosed to the Securities and Exchange Commission. Notably, corporate insiders now hold about 12.30% of the company’s total stock.

Institutional Investment in Arcus Biosciences

Several institutional investors have adjusted their shareholdings in Arcus Biosciences in recent times. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position by 2.5% during the fourth quarter, now owning 34,007 shares valued at around $506,000 after acquiring an additional 833 shares. Similarly, Zurcher Kantonalbank Zurich Cantonalbank raised its stake in the company by 2.8%, currently holding 30,781 shares worth approximately $471,000 after purchasing an extra 843 shares. JPMorgan Chase & Co. also increased their holdings by 2.6%, owning 43,685 shares valued at $668,000 following an additional purchase of 1,117 shares. Other notable adjustments include a new stake taken by R Squared Ltd. worth about $26,000 and an increase by the Teacher Retirement System of Texas by 19.2%, now possessing 14,952 shares valued at $223,000. Overall, institutional investors hold 92.89% of the company’s stock.

Company Background

Arcus Biosciences, Inc. is a clinical-stage biopharmaceutical company focused on developing and commercializing cancer therapies in the United States. Among its pipeline products are Domvanalimab, an anti-TIGIT antibody currently in Phase 2 and Phase 3 clinical trials, and AB308, another investigational anti-TIGIT monoclonal antibody undergoing Phase 1b clinical trials in patients with advanced solid and hematologic malignancies.

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