Recursion Pharmaceuticals (NASDAQ:RXRX) Stock Sees Heavy Call Option Buying

Key Points

• Unusual options activity: Investors purchased 32,589 call options on Recursion Pharmaceuticals, 79% above its average daily call volume of 18,227.
• Shares surged 14.2% to $4.71 on heavy trading volume, though the company remains unprofitable and recently missed quarterly earnings and revenue expectations.
• Analyst sentiment remains mixed: RXRX has a consensus “Hold” rating with an average price target of $8.06, while insiders sold 122,408 shares during the last quarter.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) was the target of some unusual options trading activity on Monday. Stock investors bought 32,589 call options on the company. This represents an increase of 79% compared to the average daily volume of 18,227 call options.

Recursion Pharmaceuticals Trading Up 14.2%

Shares of NASDAQ RXRX traded up $0.59 during trading on Monday, reaching $4.71. The stock had a trading volume of 40,853,578 shares, compared to its average volume of 18,488,717. 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 company has a market cap of $2.52 billion, a P/E ratio of -4.54 and a beta of 1.04. Recursion Pharmaceuticals has a fifty-two week low of $2.77 and a fifty-two week high of $7.18. The business's 50-day moving average price is $3.43 and its 200-day moving average price is $3.35.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.25) EPS 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 analysts' expectations of $10.97 million. Recursion Pharmaceuticals had a negative net margin of 945.94% and a negative return on equity of 50.41%. During the same quarter last year, the business earned ($0.41) earnings per share. On average, equities research analysts predict that Recursion Pharmaceuticals will post -0.94 EPS for the current fiscal year.

Insider Transactions at Recursion Pharmaceuticals

In other Recursion Pharmaceuticals news, Director Blake Borgeson sold 30,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $3.34, for a total value of $100,200.00. Following the transaction, the director directly owned 6,158,287 shares of the company's stock, valued at $20,568,678.58. This trade represents a 0.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 22,408 shares of Recursion Pharmaceuticals stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $3.52, for a total value of $78,876.16. Following the transaction, the chief executive officer owned 2,072,890 shares in the company, valued at approximately $7,296,572.80. The trade was a 1.07% decrease in their position. 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. In the last quarter, insiders sold 122,408 shares of company stock valued at $434,976. 6.65% of the stock is owned by insiders.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of hedge funds have recently added to or reduced their stakes in the business. MCF Advisors LLC acquired a new position in shares of Recursion Pharmaceuticals in the second quarter worth $27,000. WINTON GROUP Ltd raised its stake in shares of 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 in the last quarter. Squarepoint Ops LLC boosted its holdings 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 purchasing an additional 45,438 shares during the period. Arizona State Retirement System grew its stake 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 purchasing an additional 7,913 shares in the last quarter. Finally, Corient Private Wealth LP acquired a new position in Recursion Pharmaceuticals during the 2nd quarter worth $189,000. 89.06% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

RXRX has been the topic of several recent analyst reports. Wall Street Zen raised Recursion Pharmaceuticals from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 29th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Friday, July 17th. Finally, Morgan Stanley set a $5.30 price target on shares of Recursion Pharmaceuticals in a research note on Monday, August 17th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Recursion Pharmaceuticals has a consensus rating of "Hold" and an average target price of $8.06.

About Recursion Pharmaceuticals

Recursion Pharmaceuticals, Inc is a clinical-stage biotechnology company that uses biology, chemistry, automation and machine learning to discover and develop new medicines. The company's technology platform is designed to generate and analyze large volumes of biological and chemical data, helping researchers identify potential drug candidates and better understand disease mechanisms.

Recursion has focused its research and development activities on areas including oncology, rare diseases and neuroscience.

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