Recursion Pharmaceuticals, Inc. $RXRX Stock: Sumitomo Mitsui Trust Group Inc. Cuts Holdings

Key Points

• Sumitomo Mitsui Trust Group reduced its Recursion Pharmaceuticals stake by 10.3% in the third quarter, selling 567,704 shares and ending the period with about 4.94 million shares, or 0.92% of the company.
• Analyst views were mixed, but the stock had a consensus Hold rating and an average price target of $8.18; two analysts rated it Buy, two Hold, and one Sell.
• Recursion’s quarterly loss of $0.22 per share matched estimates, while revenue of $18.55 million topped the $14.81 million consensus estimate.

Sumitomo Mitsui Trust Group Inc. lessened its holdings in shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Free Report) by 10.3% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 4,943,983 shares of the company's stock after selling 567,704 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.92% of Recursion Pharmaceuticals worth $20,419,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. acquired a new position in Recursion Pharmaceuticals in the third quarter valued at $113,000. China Universal Asset Management Co. Ltd. boosted its stake in Recursion Pharmaceuticals by 17.0% in the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 97,679 shares of the company's stock worth $394,000 after buying an additional 14,176 shares during the last quarter. Park Avenue Securities LLC acquired a new stake in Recursion Pharmaceuticals in the 3rd quarter worth about $47,000. Prime Capital Investment Advisors LLC grew its holdings in Recursion Pharmaceuticals by 261.8% in the 3rd quarter. Prime Capital Investment Advisors LLC now owns 41,948 shares of the company's stock valued at $173,000 after buying an additional 30,354 shares during the period. Finally, Abel Hall LLC grew its holdings in Recursion Pharmaceuticals by 73.1% in the 3rd quarter. Abel Hall LLC now owns 22,856 shares of the company's stock valued at $94,000 after buying an additional 9,651 shares during the period. Institutional investors and hedge funds own 89.06% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Morgan Stanley set a $5.90 price objective on shares of Recursion Pharmaceuticals in a research note on Friday, October 16th. Wall Street Zen raised shares of Recursion Pharmaceuticals from a "strong sell" rating to a "sell" rating in a research report on Saturday, October 17th. Needham & Company LLC restated a "buy" rating and issued a $8.00 target price on shares of Recursion Pharmaceuticals in a report on Monday, October 19th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Thursday, October 15th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $8.18.

Recursion Pharmaceuticals Trading Down 9.8%

Shares of RXRX opened at $3.50 on Friday. Recursion Pharmaceuticals, Inc. has a twelve month low of $2.77 and a twelve month high of $5.24. The firm has a market capitalization of $1.87 billion, a P/E ratio of -3.89 and a beta of 1.15. The stock's fifty day simple moving average is $3.77 and its 200 day simple moving average is $3.52.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last posted its quarterly earnings results on Monday, November 2nd. The company reported ($0.22) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.22). Recursion Pharmaceuticals had a negative return on equity of 47.85% and a negative net margin of 697.15%. The firm had revenue of $18.55 million during the quarter, compared to the consensus estimate of $14.81 million. During the same quarter in the previous year, the business earned ($0.36) earnings per share. Sell-side analysts predict that Recursion Pharmaceuticals, Inc. will post -0.93 earnings per share for the current year.

Insider Transactions at Recursion Pharmaceuticals

In other news, Director Robert Hershberg sold 25,000 shares of the business's stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $5.00, for a total transaction of $125,000.00. Following the completion of the sale, the director owned 162,156 shares in the company, valued at approximately $810,780. The trade was a 13.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 22,408 shares of the business's 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 sale, the chief executive officer owned 2,072,890 shares of the company's stock, valued at $7,296,572.80. The trade was a 1.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 167,408 shares of company stock worth $701,276 in the last three months. 6.65% of the stock is currently owned by company insiders.

Recursion Pharmaceuticals News Summary

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

• Positive Sentiment: Recursion reported Q3 revenue of $18.55 million, above analysts’ $14.81 million estimate, while its loss of $0.22 per share matched expectations. The company also highlighted promising clinical data for REC-4881 and REC-1245 and said disciplined spending extends its cash runway into 2029. RXRX Q3 Earnings Call Highlights Clinical Progress and Cash Runway
• Positive Sentiment: Fred Hassan is taking the chairmanship following a Phase 2 win, adding an experienced leader as the company advances its drug pipeline. Recursion Pharmaceuticals Puts Fred Hassan In The Chair After Phase 2 Win
• Neutral Sentiment: Bank of America Securities maintained a Hold rating, indicating a cautious stance rather than a new positive or negative call. Bank of America Securities Remains a Hold on Recursion Pharmaceuticals
• Negative Sentiment: The anticipated FDA discussion about REC-4881 was inconclusive, with further clarity pushed to year-end. The delay leaves uncertainty around a potential development catalyst. RXRX Earnings: Revenue beats expectations, but FDA discussion on REC-4881 remains inconclusive
• Negative Sentiment: Director Blake Borgeson sold 40,000 shares for $155,200. The sale was made under a pre-arranged Rule 10b5-1 plan, and he continues to hold more than 6 million shares, which may temper the signal. Recursion Pharmaceuticals Director Sells $155,200 in Stock

Recursion Pharmaceuticals Company Profile

Recursion Pharmaceuticals, Inc is a biotechnology company that uses advanced computing, artificial intelligence and automated biology to discover and develop new medicines. The company's platform, known as the Recursion Operating System, combines large-scale biological experimentation with machine learning and data analysis to identify potential drug candidates and characterize how diseases respond to treatments.

Recursion applies its technology to a range of therapeutic areas, including oncology, rare diseases, neuroscience and infectious diseases.

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