Investors Purchase Large Volume of Call Options on Recursion Pharmaceuticals (NASDAQ:RXRX)

Key Points

• Unusual options activity hit Recursion Pharmaceuticals, with traders buying 22,307 call options on Wednesday, about 48% above its normal daily call volume.
• Insiders have been selling shares recently: CEO Najat Khan and Director Blake Borgeson both disclosed Rule 10b5-1 sales, and insiders sold 121,937 shares worth $421,574 over the past 90 days.
• RXRX was flat at $3.67 despite heavy trading volume, while analyst sentiment remains mixed with an overall Hold rating and an average price target of $8.10.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) saw some unusual options trading activity on Wednesday. Stock traders purchased 22,307 call options on the company. This represents an increase of 48% compared to the typical daily volume of 15,028 call options.

Insider Transactions at Recursion Pharmaceuticals

In other Recursion Pharmaceuticals news, CEO Najat Khan sold 23,588 shares of the firm's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $3.58, for a total transaction of $84,445.04. Following the sale, the chief executive officer directly owned 2,175,796 shares of the company's stock, valued at $7,789,349.68. This trade represents a 1.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 30,000 shares of Recursion Pharmaceuticals stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $3.68, for a total transaction of $110,400.00. Following the sale, the director owned 6,169,863 shares of the company's stock, valued at approximately $22,705,095.84. This trade represents a 0.48% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 121,937 shares of company stock worth $421,574. 6.65% of the stock is owned by insiders.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of large investors have recently modified their holdings of RXRX. International Assets Investment Management LLC bought a new position in shares of Recursion Pharmaceuticals during the fourth quarter worth about $31,000. Allworth Financial LP increased its holdings in Recursion Pharmaceuticals by 85.6% in the third quarter. Allworth Financial LP now owns 9,548 shares of the company's stock valued at $47,000 after buying an additional 4,403 shares during the last quarter. Sequoia Financial Advisors LLC acquired a new stake in Recursion Pharmaceuticals during the fourth quarter valued at approximately $41,000. IFP Advisors Inc lifted its holdings in Recursion Pharmaceuticals by 81.5% during the 3rd quarter. IFP Advisors Inc now owns 10,355 shares of the company's stock worth $51,000 after buying an additional 4,650 shares during the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in Recursion Pharmaceuticals by 28.1% during the 2nd quarter. NewEdge Advisors LLC now owns 11,061 shares of the company's stock worth $56,000 after buying an additional 2,428 shares during the last quarter. Institutional investors and hedge funds own 89.06% of the company's stock.

Recursion Pharmaceuticals Stock Performance

RXRX remained flat at $3.67 during trading on Wednesday. 35,676,403 shares of the company's stock traded hands, compared to its average volume of 17,859,932. Recursion Pharmaceuticals has a 12 month low of $2.77 and a 12 month high of $7.18. The stock's 50-day moving average is $3.30 and its 200 day moving average is $3.67. The stock has a market capitalization of $1.94 billion, a price-to-earnings ratio of -3.06 and a beta of 1.04. The company has a current ratio of 5.47, a quick ratio of 5.47 and a debt-to-equity ratio of 0.01.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported ($0.22) EPS for the quarter, beating analysts' consensus estimates of ($0.30) by $0.08. Recursion Pharmaceuticals had a negative net margin of 842.95% and a negative return on equity of 54.33%. The business had revenue of $6.47 million for the quarter, compared to the consensus estimate of $15.78 million. During the same quarter last year, the firm posted ($0.50) EPS. The business's revenue for the quarter was down 56.8% compared to the same quarter last year. Analysts forecast that Recursion Pharmaceuticals will post -0.99 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts have recently issued reports on RXRX shares. Morgan Stanley boosted their price objective on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an "equal weight" rating in a research note on Thursday, May 14th. JPMorgan Chase & Co. cut their target price on Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Thursday, April 30th. Needham & Company LLC reiterated a "buy" rating and issued a $8.00 target price on shares of Recursion Pharmaceuticals in a report on Thursday, May 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Tuesday, April 21st. Finally, Wall Street Zen lowered Recursion Pharmaceuticals from a "hold" rating to a "sell" rating in a research note on Saturday, March 28th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $8.10.

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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