ARK Investment Management LLC Purchases 556,868 Shares of Recursion Pharmaceuticals, Inc. $RXRX

Key Points

• ARK Investment Management LLC increased its stake in Recursion Pharmaceuticals by 556,868 shares in Q3 to 33,545,499 shares, owning 7.73% of the company (about $163.7M) and making RXRX ARK's 27th-largest position.
• Recursion's latest quarter showed revenue of $35.54 million, up 671.7% year‑over‑year and above estimates, and EPS of ($0.21) that beat consensus, although the company remains unprofitable with large negative margins.
• The stock trades around $3.64 with a $1.89B market cap, institutional ownership near 89%, a consensus analyst rating of "Hold" with a $9.40 average target, and insiders sold roughly 599,212 shares in the last quarter.

ARK Investment Management LLC raised its position in Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Free Report) by 1.7% in the third quarter, according to its most recent disclosure with the SEC. The firm owned 33,545,499 shares of the company's stock after acquiring an additional 556,868 shares during the period. Recursion Pharmaceuticals makes up about 1.0% of ARK Investment Management LLC's holdings, making the stock its 27th largest position. ARK Investment Management LLC owned 7.73% of Recursion Pharmaceuticals worth $163,702,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of RXRX. TD Waterhouse Canada Inc. lifted its holdings in shares of Recursion Pharmaceuticals by 64.1% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 5,631 shares of the company's stock worth $29,000 after purchasing an additional 2,200 shares in the last quarter. PFG Investments LLC bought a new position in shares of Recursion Pharmaceuticals in the third quarter valued at $53,000. Savant Capital LLC acquired a new position in shares of Recursion Pharmaceuticals during the third quarter valued at about $54,000. NewEdge Advisors LLC increased its position in shares of Recursion Pharmaceuticals by 28.1% during the second quarter. NewEdge Advisors LLC now owns 11,061 shares of the company's stock worth $56,000 after acquiring an additional 2,428 shares in the last quarter. Finally, Wealthfront Advisers LLC acquired a new stake in shares of Recursion Pharmaceuticals in the 3rd quarter worth about $57,000. 89.06% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Bank of America cut their target price on Recursion Pharmaceuticals from $7.00 to $6.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 25th. Needham & Company LLC reiterated a "buy" rating and issued a $8.00 target price on shares of Recursion Pharmaceuticals in a research note on Thursday, February 26th. Weiss Ratings reissued a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Thursday, January 22nd. Morgan Stanley set a $11.00 price objective on shares of Recursion Pharmaceuticals in a research note on Wednesday, December 17th. Finally, Wall Street Zen upgraded Recursion Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research note on Saturday, February 28th. 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. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $9.40.

Recursion Pharmaceuticals Price Performance

Recursion Pharmaceuticals stock opened at $3.64 on Thursday. The stock has a market cap of $1.89 billion, a price-to-earnings ratio of -2.46 and a beta of 0.97. The company has a quick ratio of 5.50, a current ratio of 5.50 and a debt-to-equity ratio of 0.01. The business has a 50-day simple moving average of $4.13 and a 200 day simple moving average of $4.65. Recursion Pharmaceuticals, Inc. has a 52 week low of $2.98 and a 52 week high of $7.18.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The company reported ($0.21) EPS for the quarter, topping the consensus estimate of ($0.28) by $0.07. The company had revenue of $35.54 million during the quarter, compared to analyst estimates of $24.56 million. Recursion Pharmaceuticals had a negative return on equity of 63.98% and a negative net margin of 863.37%.Recursion Pharmaceuticals's revenue was up 671.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.53) earnings per share. On average, research analysts forecast that Recursion Pharmaceuticals, Inc. will post -1.57 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Blake Borgeson sold 220,000 shares of the company's stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $4.20, for a total value of $924,000.00. Following the completion of the transaction, the director directly owned 6,429,863 shares in the company, valued at approximately $27,005,424.60. The trade was a 3.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Najat Khan sold 124,403 shares of the firm's stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $4.41, for a total value of $548,617.23. Following the sale, the insider owned 611,135 shares in the company, valued at $2,695,105.35. The trade was a 16.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 599,212 shares of company stock valued at $2,562,550 in the last quarter. Corporate insiders own 8.43% of the company's stock.

About Recursion Pharmaceuticals

Recursion Pharmaceuticals, Inc NASDAQ: RXRX is a biopharmaceutical company that combines advanced automation, artificial intelligence and high-throughput biology to discover and develop novel therapeutics. The company's proprietary platform integrates deep-learning algorithms with large-scale cellular imaging and chemical biology, enabling the rapid identification of potential drug candidates across a range of indications. By automating complex laboratory workflows and leveraging computational models, Recursion aims to accelerate the drug discovery process and expand the scope of targets that can be addressed.

At the core of Recursion's offering is its digital biology platform, which captures billions of cell images under varying chemical and genetic perturbations.

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