Recursion Pharmaceuticals Sees Unusually Large Options Volume (NASDAQ:RXRX)

Key Points

• Unusually high options activity: Investors purchased 25,291 call options in Recursion Pharmaceuticals, about 50% above the typical daily volume.
• Analyst sentiment remains cautious: The stock has an average rating of “Hold” and a consensus price target of $8.06, despite Morgan Stanley setting a $5.30 target and other firms maintaining sell-oriented ratings.
• Recent performance and fundamentals are weak: RXRX rose to $3.54, but the company missed quarterly earnings and revenue estimates, reporting a $0.25-per-share loss and $7.67 million in revenue.

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

Wall Street Analyst Weigh In

Several research firms have recently weighed in on RXRX. Morgan Stanley set a $5.30 price target on Recursion Pharmaceuticals in a report on Monday, August 17th. Wall Street Zen raised Recursion Pharmaceuticals from a "strong sell" rating to a "sell" rating in a report on Saturday, August 29th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $8.06.

Insider Buying and Selling at Recursion Pharmaceuticals

In other Recursion Pharmaceuticals news, CEO Najat Khan sold 22,408 shares of the company's 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 transaction, the chief executive officer owned 2,072,890 shares in the company, valued at approximately $7,296,572.80. This represents a 1.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 30,000 shares of the firm's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $3.34, for a total transaction of $100,200.00. Following the sale, the director directly owned 6,158,287 shares in the company, valued at approximately $20,568,678.58. The trade was a 0.48% 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 122,408 shares of company stock worth $434,976 over the last ninety days. 6.65% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. MCF Advisors LLC bought a new position in Recursion Pharmaceuticals during the second quarter valued at $27,000. WINTON GROUP Ltd boosted its holdings in Recursion Pharmaceuticals by 85.2% during the 2nd 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 period. Squarepoint Ops LLC grew its holdings in shares of Recursion Pharmaceuticals by 85.8% in the second quarter. Squarepoint Ops LLC now owns 98,426 shares of the company's stock worth $361,000 after purchasing an additional 45,438 shares during the last quarter. Arizona State Retirement System increased its position in shares of Recursion Pharmaceuticals by 6.5% during the second 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 Recursion Pharmaceuticals during the 2nd quarter valued at $189,000. 89.06% of the stock is currently owned by institutional investors.

Recursion Pharmaceuticals Stock Performance

NASDAQ RXRX traded up $0.35 on Thursday, reaching $3.54. 22,899,929 shares of the stock were exchanged, compared to its average volume of 17,901,400. The firm has a market capitalization of $1.90 billion, a PE ratio of -3.40 and a beta of 1.07. Recursion Pharmaceuticals has a one year low of $2.77 and a one year high of $7.18. The company's 50-day simple moving average is $3.26 and its two-hundred day simple moving average is $3.32. The company has a current ratio of 5.03, a quick ratio of 5.03 and a debt-to-equity ratio of 0.01.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.24) by ($0.01). The business had revenue of $7.67 million during 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 company earned ($0.41) earnings per share. Analysts expect that Recursion Pharmaceuticals will post -0.92 EPS for the current fiscal year.

About Recursion Pharmaceuticals

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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