Needham & Company LLC Reaffirms "Buy" Rating for Recursion Pharmaceuticals (NASDAQ:RXRX)

Key Points

• Needham & Company reaffirmed a “Buy” rating on Recursion Pharmaceuticals with an $8.00 price target, implying 131.21% upside from the $3.46 closing price. However, the broader analyst consensus remains “Hold,” with an average target of $8.18.
• Recursion reported a quarterly loss of $0.25 per share, slightly worse than estimates, while revenue of $7.67 million fell short of the $10.97 million forecast. Analysts expect a full-year loss of $0.94 per share.
• Insiders sold 157,408 shares worth $643,576 over the past 90 days under pre-arranged trading plans, while hedge funds and institutional investors own 89.06% of the company.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report)'s stock had its "buy" rating reaffirmed by Needham & Company LLC in a report issued on Monday, Benzinga reports. They presently have a $8.00 price objective on the stock. Needham & Company LLC's target price would suggest a potential upside of 131.21% from the company's previous close.

Several other analysts have also recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a report on Thursday. Wall Street Zen upgraded shares of Recursion Pharmaceuticals from a "strong sell" rating to a "sell" rating in a report on Saturday. Finally, Morgan Stanley set a $5.90 price objective on shares of Recursion Pharmaceuticals in a research report on Friday. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Recursion Pharmaceuticals presently has a consensus rating of "Hold" and an average price target of $8.18.

Recursion Pharmaceuticals Price Performance

Shares of NASDAQ RXRX opened at $3.46 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.03 and a quick ratio of 5.03. The company has a market cap of $1.85 billion, a price-to-earnings ratio of -3.33 and a beta of 1.04. The stock's 50-day moving average is $3.63 and its two-hundred day moving average is $3.42. Recursion Pharmaceuticals has a 1-year low of $2.77 and a 1-year high of $7.18.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.25) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.01). Recursion Pharmaceuticals had a negative net margin of 945.94% and a negative return on equity of 50.41%. The company had revenue of $7.67 million during the quarter, compared to analysts' expectations of $10.97 million. During the same quarter in the previous year, the business posted ($0.41) EPS. Analysts forecast that Recursion Pharmaceuticals will post -0.94 EPS for the current fiscal year.

Insider Transactions at Recursion Pharmaceuticals

In other news, CEO Najat Khan sold 22,408 shares of the stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $3.52, for a total value of $78,876.16. Following the transaction, the chief executive officer owned 2,072,890 shares in the company, valued at approximately $7,296,572.80. This represents a 1.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 50,000 shares of the stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $4.84, for a total value of $242,000.00. Following the completion of the transaction, the director owned 6,108,287 shares in the company, valued at approximately $29,564,109.08. The trade was a 0.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 157,408 shares of company stock valued at $643,576. 6.65% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Recursion Pharmaceuticals

Hedge funds have recently added to or reduced their stakes in the stock. TD Waterhouse Canada Inc. raised its stake in Recursion Pharmaceuticals by 193.2% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 59,613 shares of the company's stock worth $243,000 after acquiring an additional 39,282 shares in the last quarter. Green Alpha Advisors LLC boosted its stake in Recursion Pharmaceuticals by 62.3% in the third quarter. Green Alpha Advisors LLC now owns 239,404 shares of the company's stock valued at $989,000 after acquiring an additional 91,860 shares in the last quarter. Whalen Wealth Management Inc. purchased a new position in shares of Recursion Pharmaceuticals during the third quarter worth about $199,000. MCF Advisors LLC purchased a new position in shares of Recursion Pharmaceuticals during the second quarter worth about $27,000. Finally, WINTON GROUP Ltd increased its position in shares of Recursion Pharmaceuticals by 85.2% during the second quarter. WINTON GROUP Ltd now owns 192,800 shares of the company's stock worth $708,000 after purchasing an additional 88,700 shares in the last quarter. 89.06% of the stock is currently owned by hedge funds and other institutional investors.

Recursion Pharmaceuticals Company Profile

Recursion Pharmaceuticals, Inc is a clinical-stage biotechnology company that uses biology, chemistry, automation and machine learning to discover and develop new medicines. The company's technology platform is designed to generate and analyze large volumes of biological and chemical data, helping researchers identify potential drug candidates and better understand disease mechanisms.

Recursion has focused its research and development activities on areas including oncology, rare diseases and neuroscience.