Recursion Pharmaceuticals (NASDAQ:RXRX) Stock Price Up 10% - Should You Buy?

Key Points

• Recursion Pharmaceuticals shares jumped roughly 10% to about $4.53, with the company valued at approximately $2.54 billion. The stock remains above its 50-day and 200-day moving averages.
• Analysts maintain a generally cautious view, with a consensus “Hold” rating and an average price target of $8.06; recent ratings included a “Sell” and a $5.30 target from Morgan Stanley.
• The company continues to report significant losses: quarterly revenue of $7.67 million missed estimates, EPS came in at negative $0.25, and analysts expect a full-year loss of $0.94 per share. Insiders sold shares recently, while institutional investors own 89.06% of the stock.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) shares shot up 10% during mid-day trading on Monday. The company traded as high as $4.51 and last traded at $4.5310. 14,294,243 shares changed hands during trading, a decline of 22% from the average daily volume of 18,334,430 shares. The stock had previously closed at $4.12.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Wall Street Zen raised shares of Recursion Pharmaceuticals from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 29th. Morgan Stanley set a $5.30 price objective on Recursion Pharmaceuticals in a report on Monday, August 17th. Finally, Weiss Ratings reaffirmed 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 assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Recursion Pharmaceuticals presently has a consensus rating of "Hold" and an average price target of $8.06.

Recursion Pharmaceuticals Trading Up 15.2%

The company has a debt-to-equity ratio of 0.01, a current ratio of 5.03 and a quick ratio of 5.03. The company's 50 day simple moving average is $3.43 and its two-hundred day simple moving average is $3.35. The company has a market cap of $2.54 billion, a PE ratio of -4.57 and a beta of 1.04.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.25) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $10.97 million. During the same quarter last year, the company earned ($0.41) earnings per share. As a group, sell-side analysts anticipate that Recursion Pharmaceuticals, Inc. will post -0.94 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Blake Borgeson sold 30,000 shares of Recursion Pharmaceuticals stock in a transaction 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. The trade was a 0.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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 shares were sold at an average price of $3.52, for a total value of $78,876.16. Following the completion of the transaction, 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 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. In the last quarter, insiders sold 122,408 shares of company stock valued at $434,976. 6.65% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Norges Bank acquired a new stake in shares of Recursion Pharmaceuticals during the fourth quarter valued at $23,473,000. First Trust Advisors LP increased its stake in 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 buying an additional 344,035 shares during the period. Bank of America Corp DE grew its position in shares of Recursion Pharmaceuticals by 18.2% during the first quarter. Bank of America Corp DE now owns 2,496,831 shares of the company's stock worth $7,665,000 after buying an additional 384,486 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in Recursion Pharmaceuticals during the first quarter valued at approximately $7,370,000. Finally, Bank of New York Mellon Corp grew its position 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 valued at $4,490,000 after buying an additional 331,048 shares during the last quarter. Hedge funds and other institutional investors own 89.06% of the company's stock.

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.

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