Sumitomo Mitsui Trust Group Inc. Cuts Stock Position in Recursion Pharmaceuticals, Inc. $RXRX

Key Points

• Sumitomo Mitsui Trust Group reduced its stake in Recursion Pharmaceuticals by 12.9% in the first quarter, selling 801,804 shares and ending with 5.42 million shares worth about $16.6 million.
• Recursion reported better-than-expected EPS of -$0.22 for the quarter, but revenue of $6.47 million fell well short of estimates and declined 56.8% year over year.
• Wall Street remains cautious overall, with a consensus Hold rating on RXRX and a target price of $8.10, while recent insider sales by the CEO and a director added to the mixed sentiment.

Sumitomo Mitsui Trust Group Inc. cut its holdings in shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Free Report) by 12.9% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 5,419,221 shares of the company's stock after selling 801,804 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 1.03% of Recursion Pharmaceuticals worth $16,637,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. International Assets Investment Management LLC purchased a new stake in shares of Recursion Pharmaceuticals during the fourth quarter worth about $31,000. Integral Investment Advisors Inc. purchased a new position in Recursion Pharmaceuticals in the 1st quarter worth approximately $39,000. Sequoia Financial Advisors LLC purchased a new position in Recursion Pharmaceuticals in the 4th quarter worth approximately $41,000. MQS Management LLC bought a new position in Recursion Pharmaceuticals in the 1st quarter worth approximately $41,000. Finally, Allworth Financial LP boosted its stake in Recursion Pharmaceuticals by 85.6% in the 3rd quarter. Allworth Financial LP now owns 9,548 shares of the company's stock worth $47,000 after purchasing an additional 4,403 shares during the period. 89.06% of the stock is currently owned by hedge funds and other institutional investors.

Recursion Pharmaceuticals Price Performance

Shares of RXRX stock opened at $3.34 on Wednesday. The stock has a 50 day moving average price of $3.34 and a 200 day moving average price of $3.62. Recursion Pharmaceuticals, Inc. has a 52-week low of $2.77 and a 52-week high of $7.18. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.47 and a current ratio of 5.47. The firm has a market capitalization of $1.77 billion, a P/E ratio of -2.78 and a beta of 1.00.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.30) by $0.08. Recursion Pharmaceuticals had a negative return on equity of 54.33% and a negative net margin of 842.95%.The company had revenue of $6.47 million for the quarter, compared to the consensus estimate of $15.78 million. During the same quarter in the prior year, the company posted ($0.50) EPS. Recursion Pharmaceuticals's quarterly revenue was down 56.8% on a year-over-year basis. As a group, sell-side analysts predict that Recursion Pharmaceuticals, Inc. will post -0.99 earnings per share for the current year.

Wall Street Analyst Weigh In

RXRX has been the subject of a number of research analyst reports. Morgan Stanley increased their price objective on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an "equal weight" rating in a report on Thursday, May 14th. Needham & Company LLC reissued a "buy" rating and issued a $8.00 target price on shares of Recursion Pharmaceuticals in a report on Thursday, May 7th. JPMorgan Chase & Co. dropped their target price on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating for the company in a research report on Thursday, April 30th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Tuesday, April 21st. Finally, Wall Street Zen downgraded shares of Recursion Pharmaceuticals from a "hold" rating to a "sell" rating in a report on Saturday, March 28th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $8.10.

Insiders Place Their Bets

In other Recursion Pharmaceuticals news, CEO Najat Khan sold 23,588 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $3.58, for a total value of $84,445.04. Following the transaction, the chief executive officer directly owned 2,175,796 shares in the company, valued at $7,789,349.68. This represents a 1.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 40,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $3.96, for a total transaction of $158,400.00. Following the transaction, the director directly owned 6,218,287 shares in the company, valued at approximately $24,624,416.52. This trade represents a 0.64% decrease in their ownership of the stock. 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 131,937 shares of company stock valued at $486,974 over the last three months. Insiders own 6.65% 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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