As the world becomes more and more susceptible to deadly diseases, the importance of immunotherapy cannot be overstated. Arcus Biosciences, Inc is a leading player in the development of immunotherapies and has caught the attention of Nordea Investment Management AB, one of Europe’s largest asset managers. According to its most recent filing with the Securities and Exchange Commission (SEC), Nordea Investment Management AB has acquired 265,514 shares of Arcus Biosciences’ stock worth approximately $5.4 million.
Arcus Biosciences is headquartered in Hayward, CA and was founded by Terry J. Rosen and Juan Carlos Jaen in 2015. Since then, it has emerged as one of the key players in developing immunotherapies to combat cancerous cells. The company competes with other pharmaceuticals, biotechnology firms and related markets to develop innovative solutions for treating cancer.
The value of Arcus Biosciences stock opened at $18.81 on May 11, 2023. This figure may appear modest compared to other stocks but it should not be overlooked considering that two hundred days ago it was valued at $21.92 per share. Despite this recent dip in value, Arcus Biosciences’ market cap remains an impressive $1.37 billion.
Over the past year, shares in Arcus Biosciences have seen a range between its current low point of $15.70 and high point of $36.13 per share showing remarkable volatility within a limited time frame but also opportunities for investors who know what they are doing.
Nordea Investment Management AB’s acquisition of these shares points to growing confidence among investors that there could be significant growth potential for Arcus Biosciences moving forward as its products progress through various stages from testing up until approval.
The strength shown by companies like Arcus BioSciences aids not only investors but also patients who have hope for better and more effective treatments in the future. As research activities accelerate in this field, the possibility of a true breakthrough cannot be dismissed. Arcus Biosciences is actively making significant strides toward finding such medical breakthroughs and investors are eagerly following its progress.
Arcus Biosciences Sees Increase in Institutional Investment, But Faces Mixed Ratings and Earnings Reports
Arcus Biosciences, a Hayward-based biotech company specializing in immunotherapies for cancer treatment, has recently seen an increase in shares as several institutional investors have bought and sold portions of the company. BlackRock Inc. boosted its holdings by 9.9% during the third quarter, now owning over eight million shares worth $233,559,000. Other investors include SG Americas Securities LLC, Endurant Capital Management LP, Sofinnova Investments Inc., and Perceptive Advisors LLC. Collectively, institutional investors and hedge funds own 72.97% of the company’s stock.
Despite this influx of investment interest, some analysts are less optimistic about Arcus Biosciences’ future performance. In fact, TheStreet recently downgraded the company from a “c-” rating to a “d” rating while Citigroup reduced their price target on Arcus Biosciences from $42 to $40 per share in March. Mizuho has issued a “buy” rating and a target price of $51 per share.
Arcus Biosciences started operations in 2015 under the leadership of co-founders Terry J. Rosen and Juan Carlos Jaen but is yet to turn a profit. Recent earnings reports were disappointing with revenue beating expectations at $25 million but reporting an EPS loss of ($1.09) for the first quarter of 2023 compared to expectations of ($1.06). While analysts anticipate negative EPS figures for the whole year ahead as well, they still give moderate buy ratings overall with a consensus price target set at around $41.
In other news, COO Jennifer Jarrett sold 8,729 shares worth over $146,734 in mid-March after which she owned just over 400k shares valued at approximately $6.83 million.
All eyes are now on Arcus Biosciences hoping that its novel treatments prove successful and profitable amid new competition and the ambitious pursuit of cancer research by many other biotech companies.