Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Down 6.4% - Should You Sell?

Key Points

• Recursion Pharmaceuticals shares fell 6.4% to approximately $4.08 in mid-day trading, with volume 62% below its average. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans cautious: the consensus rating is Hold with an average price target of $8.06, while Wall Street Zen upgraded its view from “strong sell” to “sell.”
• The company reported a quarterly loss of $0.25 per share and revenue of $7.67 million, both slightly below expectations. Insiders sold $643,576 of stock over the past 90 days, although institutional investors own a substantial 89.06% stake.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s stock price traded down 6.4% during mid-day trading on Monday. The stock traded as low as $4.08 and last traded at $4.0820. 7,201,849 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 19,100,949 shares. The stock had previously closed at $4.36.

Analyst Ratings Changes

RXRX has been the subject of a number of research analyst reports. Wall Street Zen raised Recursion Pharmaceuticals from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 29th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a report on Friday, July 17th. Finally, Morgan Stanley set a $5.30 price target on Recursion Pharmaceuticals in a research report on Monday, August 17th. Two 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. According to data from MarketBeat.com, Recursion Pharmaceuticals currently has a consensus rating of "Hold" and an average target price of $8.06.

Recursion Pharmaceuticals Stock Down 8.6%

The company has a current ratio of 5.03, a quick ratio of 5.03 and a debt-to-equity ratio of 0.01. The firm has a market cap of $2.13 billion, a PE ratio of -3.83 and a beta of 1.04. The business's 50-day simple moving average is $3.57 and its 200 day simple moving average is $3.39.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last announced 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). Recursion Pharmaceuticals had a negative return on equity of 50.41% and a negative net margin of 945.94%. The business had revenue of $7.67 million during the quarter, compared to analysts' expectations of $10.97 million. During the same period in the previous year, the company posted ($0.41) EPS. As a group, equities research analysts expect that Recursion Pharmaceuticals, Inc. will post -0.94 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Blake Borgeson sold 50,000 shares of the business's stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $4.84, for a total value of $242,000.00. Following the completion of the transaction, the director owned 6,108,287 shares of the company's stock, valued at $29,564,109.08. The trade was a 0.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Hershberg sold 25,000 shares of the company's stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $5.00, for a total value of $125,000.00. Following the sale, the director owned 162,156 shares of the company's stock, valued at approximately $810,780. This represents a 13.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 157,408 shares of company stock valued at $643,576 over the last 90 days. Corporate insiders own 6.65% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RXRX. Hsbc Holdings PLC boosted its holdings in shares of Recursion Pharmaceuticals by 537.3% in the 4th quarter. Hsbc Holdings PLC now owns 818,316 shares of the company's stock valued at $3,367,000 after buying an additional 689,903 shares in the last quarter. Renaissance Technologies LLC purchased a new position in shares of Recursion Pharmaceuticals in the 1st quarter worth approximately $7,370,000. Bank of New York Mellon Corp raised its stake in shares of Recursion Pharmaceuticals by 29.3% during the 1st quarter. Bank of New York Mellon Corp now owns 1,462,631 shares of the company's stock worth $4,490,000 after acquiring an additional 331,048 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Recursion Pharmaceuticals by 18.2% during the 1st quarter. Bank of America Corp DE now owns 2,496,831 shares of the company's stock worth $7,665,000 after acquiring an additional 384,486 shares in the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Recursion Pharmaceuticals by 15.2% during the 1st quarter. First Trust Advisors LP now owns 2,610,726 shares of the company's stock worth $8,015,000 after acquiring an additional 344,035 shares in the last quarter. 89.06% of the stock is currently owned by hedge funds and other institutional investors.

Recursion Pharmaceuticals Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.