Recursion Pharmaceuticals (NASDAQ:RXRX) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Recursion Pharmaceuticals from “strong sell” to “sell,” but broader analyst sentiment remains cautious: the consensus rating is “Hold” with an $8.18 price target.
• Recursion’s latest quarter fell short of expectations, reporting a loss of $0.25 per share versus a $0.24 estimate and revenue of $7.67 million versus $10.97 million expected. The company remains deeply unprofitable, with a negative net margin of 945.94%.
• Insiders sold 157,408 shares worth $643,576 over the past 90 days, while institutional investors own 89.06% of the stock. The company also faces potential dilution after pricing a $200 million follow-on offering of 61.54 million new shares.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) was upgraded by Wall Street Zen from a "strong sell" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other research analysts also recently weighed in on RXRX. Morgan Stanley set a $5.90 price target on Recursion Pharmaceuticals in a research note on Friday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Thursday. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $8.18.

Recursion Pharmaceuticals Stock Down 16.8%

Shares of NASDAQ:RXRX opened at $3.46 on Friday. Recursion Pharmaceuticals has a one year low of $2.77 and a one year high of $7.18. The company has a 50 day moving average of $3.63 and a 200-day moving average of $3.42. 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 stock has a market cap of $1.85 billion, a price-to-earnings ratio of -3.33 and a beta of 1.04.

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 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 business had revenue of $7.67 million during the quarter, compared to analyst estimates of $10.97 million. During the same quarter in the prior year, the company earned ($0.41) earnings per share. On average, sell-side analysts forecast that Recursion Pharmaceuticals will post -0.94 earnings per share for the current year.

Insiders Place Their Bets

In other Recursion Pharmaceuticals news, CEO Najat Khan sold 22,408 shares of Recursion Pharmaceuticals stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $3.52, for a total transaction of $78,876.16. Following the transaction, the chief executive officer directly owned 2,072,890 shares in the company, valued at approximately $7,296,572.80. The trade was a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Hershberg sold 25,000 shares of the business's stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $5.00, for a total value of $125,000.00. Following the completion of the transaction, the director directly owned 162,156 shares of the company's stock, valued at approximately $810,780. The trade was a 13.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 157,408 shares of company stock worth $643,576. Corporate insiders own 6.65% of the company's stock.

Institutional Investors Weigh In On Recursion Pharmaceuticals

Several institutional investors have recently added to or reduced their stakes in the stock. Ascent Wealth Partners LLC boosted its stake in Recursion Pharmaceuticals by 11.8% in the 1st quarter. Ascent Wealth Partners LLC now owns 28,081 shares of the company's stock worth $86,000 after purchasing an additional 2,974 shares during the period. Cherry Creek Investment Advisors Inc. increased its holdings in Recursion Pharmaceuticals by 5.8% during the 1st quarter. Cherry Creek Investment Advisors Inc. now owns 70,536 shares of the company's stock worth $217,000 after purchasing an additional 3,859 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in shares of Recursion Pharmaceuticals by 33.2% in the 1st quarter. PNC Financial Services Group Inc. now owns 16,832 shares of the company's stock valued at $52,000 after purchasing an additional 4,199 shares during the period. Sequoia Financial Advisors LLC raised its stake in shares of Recursion Pharmaceuticals by 51.5% in the 1st quarter. Sequoia Financial Advisors LLC now owns 15,162 shares of the company's stock valued at $47,000 after purchasing an additional 5,156 shares during the period. Finally, Axxcess Wealth Management LLC raised its stake in shares of Recursion Pharmaceuticals by 16.6% in the 1st quarter. Axxcess Wealth Management LLC now owns 37,516 shares of the company's stock valued at $115,000 after purchasing an additional 5,338 shares during the period. 89.06% of the stock is owned by institutional investors.

More Recursion Pharmaceuticals News

Here are the key news stories impacting Recursion Pharmaceuticals this week:

• Positive Sentiment: Sanofi collaboration advanced: Sanofi exercised an option on a potential first-in-class immunology development candidate from the companies’ collaboration. The milestone validates Recursion’s AI-enabled drug-discovery platform and could support more than $400 million in potential milestone revenue across the partnership. Recursion Announces $200 Million Offering, Clinical Data Updates, and Partnership Milestone
• Positive Sentiment: Pipeline data provided additional support: Recursion reported updated Phase 1b/2 results for REC-4881 in familial adenomatous polyposis and early Phase 1 data for REC-1245. The updates helped reinforce expectations that multiple internally developed programs could advance, although the trials remain early stage. Recursion Reports REC-4881 and REC-1245 Clinical Data
• Positive Sentiment: Strong institutional demand improved liquidity: The follow-on financing was described as oversubscribed and included healthcare-focused investors such as ARK Invest, Janus Henderson Investors, Invus and other funds. The proceeds give Recursion additional resources to fund clinical development and operations. Recursion Announces Pricing of $200 Million Offering
• Neutral Sentiment: Analysts remain cautious, with coverage maintaining a “Hold” view while awaiting clearer evidence of REC-4881’s clinical and commercial potential and further collaboration candidates. Recursion Hold Rating and REC-4881 Update
• Negative Sentiment: Share dilution is weighing on the stock: Recursion priced 61.54 million new Class A shares at $3.25 each, raising $200 million. The discounted issuance expands the share count and can pressure existing shareholders, offsetting some of the optimism surrounding the clinical and Sanofi announcements. Recursion $200 Million Stock Offering Pricing

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.

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