Revolution Medicines (NASDAQ:RVMD) Shares Gap Up – Time to Buy?

Revolution Medicines, Inc. (NASDAQ:RVMD) gapped up before the market opened on Friday . The stock had previously closed at $107.39, but opened at $120.00. Revolution Medicines shares last traded at $112.2550, with a volume of 3,021,497 shares traded.

Key Headlines Impacting Revolution Medicines

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: Merck reported to be in talks to acquire Revolution — takeover buzz revived after a Financial Times-related report that Merck is discussing a purchase valuing RVMD at as much as $32 billion; this renewed M&A speculation has been a primary driver of the stock rally. Revolution Medicines Stock Soars. Takeover Buzz Grows, Another Suitor Emerges.
• Positive Sentiment: FDA grants Breakthrough Therapy Designation to zoldonrasib (KRAS G12D) — regulators designated the company’s RAS(ON) G12D inhibitor as a Breakthrough Therapy for previously treated KRAS G12D NSCLC, strengthening the value story for RVMD’s pipeline and making the company more attractive to strategic buyers. Revolution Medicines Announces FDA Breakthrough Therapy Designation for Zoldonrasib
• Positive Sentiment: Surge in bullish options activity — unusually large call buying (roughly 12,079 calls, a >1,000% jump vs. typical volume) suggests speculative positioning or hedging ahead of potential corporate news, which can amplify upward moves.
• Neutral Sentiment: Stock hit record highs amid buyout chatter — earlier reports (WSJ/other) that AbbVie was a suitor pushed RVMD to all-time highs before the subsequent denial; this demonstrates the market’s sensitivity to takeover headlines. RVMD Stock Hits a Record High on Rumored Takeover Interest
• Neutral Sentiment: Multiple LULD trading halts during the session — exchanges temporarily paused RVMD trading several times for Limit Up/Limit Down activity, reflecting rapid price moves and heightened intraday volatility; these are technical market controls rather than company fundamentals.
• Negative Sentiment: AbbVie publicly denied takeover talks — AbbVie’s denial weighed on some of the earlier optimism and triggered pullbacks; such denials reduce near-term certainty around an acquisition outcome. AbbVie Denies It’s in Talks to Buy Revolution Medicines. Both Stocks Are Falling.

Analysts Set New Price Targets

Several research analysts have recently commented on RVMD shares. Wolfe Research assumed coverage on Revolution Medicines in a research note on Tuesday, November 18th. They set an “outperform” rating and a $75.00 target price for the company. Stifel Nicolaus started coverage on shares of Revolution Medicines in a research note on Wednesday, October 15th. They issued a “buy” rating and a $85.00 price target on the stock. HC Wainwright increased their target price on Revolution Medicines from $72.00 to $73.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Revolution Medicines in a report on Wednesday, October 8th. Finally, Needham & Company LLC lifted their target price on Revolution Medicines from $66.00 to $72.00 and gave the stock a “buy” rating in a report on Thursday, November 6th. Four research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $78.94.

Revolution Medicines Stock Up 5.9%

The stock has a 50-day moving average of $75.17 and a 200-day moving average of $53.43. The company has a debt-to-equity ratio of 0.16, a current ratio of 8.05 and a quick ratio of 8.05. The firm has a market cap of $21.98 billion, a price-to-earnings ratio of -22.02 and a beta of 0.99.

Revolution Medicines (NASDAQ:RVMD) last announced its quarterly earnings data on Wednesday, November 5th. The company reported ($1.61) earnings per share for the quarter, missing the consensus estimate of ($1.39) by ($0.22). During the same quarter in the previous year, the business earned ($0.94) earnings per share. Sell-side analysts predict that Revolution Medicines, Inc. will post -3.49 EPS for the current fiscal year.

Insider Activity

In other news, insider Stephen Michael Kelsey sold 25,000 shares of the business’s stock in a transaction that occurred on Monday, October 13th. The shares were sold at an average price of $48.54, for a total value of $1,213,500.00. Following the completion of the transaction, the insider directly owned 284,047 shares in the company, valued at approximately $13,787,641.38. The trade was a 8.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mark A. Goldsmith sold 60,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $75.08, for a total transaction of $4,504,800.00. Following the sale, the insider directly owned 247,863 shares of the company’s stock, valued at approximately $18,609,554.04. This trade represents a 19.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 183,792 shares of company stock valued at $12,449,240 in the last 90 days. 8.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Revolution Medicines

A number of large investors have recently modified their holdings of RVMD. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Revolution Medicines during the 4th quarter worth $208,000. GAMMA Investing LLC grew its position in Revolution Medicines by 60.0% in the fourth quarter. GAMMA Investing LLC now owns 1,339 shares of the company’s stock valued at $107,000 after acquiring an additional 502 shares during the last quarter. FNY Investment Advisers LLC acquired a new position in Revolution Medicines during the third quarter worth about $110,000. Swiss Life Asset Management Ltd acquired a new position in Revolution Medicines during the third quarter worth about $293,000. Finally, Danske Bank A S bought a new position in shares of Revolution Medicines in the third quarter worth about $98,000. Institutional investors and hedge funds own 94.34% of the company’s stock.

About Revolution Medicines

Revolution Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapies to treat RAS-dependent cancers and other diseases driven by the RAS/MAPK pathway. The company’s research efforts target historically “undruggable” proteins, aiming to inhibit critical nodes in cell signaling that promote tumor growth and therapeutic resistance.

The lead pipeline includes RMC-4630, a SHP2 inhibitor; RMC-6291, a selective KRAS G12C inhibitor; and RMC-6236, a pan-RAS inhibitor designed to address multiple RAS mutations.