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

Key Points

• Unusual options activity: Investors purchased 25,291 call options on Recursion Pharmaceuticals, roughly 50% above the typical volume.
• Insider selling continued: Executives and directors sold shares under pre-arranged Rule 10b5-1 plans, with insiders selling 122,408 shares worth approximately $435,000 over the past three months.
• Mixed outlook: RXRX shares rose 11.1% to $3.54, while analysts maintained an average “Hold” rating and an $8.06 consensus price target. The company recently missed quarterly revenue and earnings estimates.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) saw some unusual options trading on Thursday. Stock investors purchased 25,291 call options on the company. This is an increase of 50% compared to the typical volume of 16,872 call options.

Insiders Place Their Bets

In related news, CEO Najat Khan sold 22,408 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $3.52, for a total transaction of $78,876.16. Following the completion of the sale, the chief executive officer owned 2,072,890 shares in the company, valued at $7,296,572.80. This trade represents a 1.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 40,000 shares of Recursion Pharmaceuticals stock in a transaction dated Tuesday, July 7th. The shares were 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 of the company's stock, valued at $24,624,416.52. This represents a 0.64% 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 three months, insiders have sold 122,408 shares of company stock valued at $434,976. Company insiders own 6.65% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. MCF Advisors LLC acquired a new stake in shares of Recursion Pharmaceuticals during the 2nd quarter worth approximately $27,000. WINTON GROUP Ltd boosted its stake in Recursion Pharmaceuticals by 85.2% in the second quarter. WINTON GROUP Ltd now owns 192,800 shares of the company's stock valued at $708,000 after acquiring an additional 88,700 shares during the last quarter. Squarepoint Ops LLC boosted its stake in Recursion Pharmaceuticals by 85.8% in the second quarter. Squarepoint Ops LLC now owns 98,426 shares of the company's stock valued at $361,000 after acquiring an additional 45,438 shares during the last quarter. Arizona State Retirement System grew its holdings in Recursion Pharmaceuticals by 6.5% during the 2nd quarter. Arizona State Retirement System now owns 129,619 shares of the company's stock worth $476,000 after acquiring an additional 7,913 shares during the period. Finally, Corient Private Wealth LP bought a new stake in shares of Recursion Pharmaceuticals during the 2nd quarter valued at $189,000. Institutional investors own 89.06% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on RXRX. Morgan Stanley set a $5.30 price target on Recursion Pharmaceuticals in a research report on Monday, August 17th. Weiss Ratings reissued a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Friday, July 17th. Finally, Wall Street Zen upgraded Recursion Pharmaceuticals from a "strong sell" rating to a "sell" rating in a report on Saturday, August 29th. Two equities research 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 MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $8.06.

Recursion Pharmaceuticals Trading Up 11.1%

RXRX traded up $0.35 during mid-day trading on Thursday, reaching $3.54. The stock had a trading volume of 22,899,929 shares, compared to its average volume of 17,901,400. The stock has a market capitalization of $1.90 billion, a P/E ratio of -3.40 and a beta of 1.07. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.03 and a current ratio of 5.03. The firm's fifty day simple moving average is $3.26 and its two-hundred day simple moving average is $3.32. Recursion Pharmaceuticals has a 52 week low of $2.77 and a 52 week high of $7.18.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.25) earnings per share for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.01). The firm had revenue of $7.67 million for the quarter, compared to the consensus estimate of $10.97 million. Recursion Pharmaceuticals had a negative return on equity of 50.41% and a negative net margin of 945.94%.During the same quarter in the previous year, the firm earned ($0.41) EPS. On average, equities analysts predict that Recursion Pharmaceuticals will post -0.92 EPS for the current year.

Recursion Pharmaceuticals Company Profile

Recursion Pharmaceuticals, Inc NASDAQ: RXRX is a biotechnology company that uses artificial intelligence, automation, and large-scale biological experimentation to accelerate the discovery and development of medicines. Its technology platform, known as the Recursion Operating System, integrates data from biology, chemistry, imaging, and machine learning to identify potential drug candidates and better understand disease biology.

The company develops therapies for areas including oncology, rare diseases, and neurological disorders.

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