Recursion Pharmaceuticals (NASDAQ:RXRX) Trading Up 10.8% - Time to Buy?

Key Points

• Recursion Pharmaceuticals shares jumped 10.8% to about $3.54, although trading volume was 72% below the stock’s average daily volume.
• Analysts maintain a mixed outlook: the stock has a consensus rating of “Hold” and a target price of $8.06, while ratings range from Buy to Sell.
• The company remains unprofitable, reporting a quarterly loss of $0.25 per share and revenue of $7.67 million, below expectations; insiders have also sold 122,408 shares over the past three months.

Shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) rose 10.8% during trading on Thursday . The company traded as high as $3.49 and last traded at $3.5350. 4,967,503 shares were traded during mid-day trading, a decline of 72% from the average daily volume of 17,795,248 shares. The stock had previously closed at $3.19.

Analysts Set New Price Targets

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

Recursion Pharmaceuticals Trading Up 8.6%

The company has a quick ratio of 5.03, a current ratio of 5.03 and a debt-to-equity ratio of 0.01. The stock's 50 day moving average is $3.26 and its two-hundred day moving average is $3.32. The company has a market capitalization of $1.85 billion, a PE ratio of -3.33 and a beta of 1.07.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last posted 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). Recursion Pharmaceuticals had a negative net margin of 945.94% and a negative return on equity of 50.41%. The business had revenue of $7.67 million for the quarter, compared to analysts' expectations of $10.97 million. During the same period last year, the business posted ($0.41) EPS. As a group, sell-side analysts predict that Recursion Pharmaceuticals, Inc. will post -0.92 EPS for the current fiscal year.

Insider Activity at Recursion Pharmaceuticals

In related news, CEO Najat Khan sold 22,408 shares of the business's 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 of the company's stock, valued at $7,296,572.80. The trade was a 1.07% 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 Blake Borgeson sold 40,000 shares of the company's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $3.96, for a total value of $158,400.00. Following the sale, the director owned 6,218,287 shares of the company's stock, valued at approximately $24,624,416.52. This represents a 0.64% 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. Over the last three months, insiders have sold 122,408 shares of company stock worth $434,976. 6.65% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of hedge funds have recently made changes to their positions in RXRX. Ascent Wealth Partners LLC boosted its stake in shares of Recursion Pharmaceuticals by 11.8% in the first quarter. Ascent Wealth Partners LLC now owns 28,081 shares of the company's stock worth $86,000 after acquiring an additional 2,974 shares during the last quarter. Swiss Life Asset Management Ltd increased its position in shares of Recursion Pharmaceuticals by 27.3% during the fourth quarter. Swiss Life Asset Management Ltd now owns 17,050 shares of the company's stock worth $70,000 after purchasing an additional 3,657 shares in the last quarter. Cherry Creek Investment Advisors Inc. raised its stake in Recursion Pharmaceuticals by 5.8% in the 1st quarter. Cherry Creek Investment Advisors Inc. now owns 70,536 shares of the company's stock valued at $217,000 after purchasing an additional 3,859 shares during the last quarter. PNC Financial Services Group Inc. raised its stake in Recursion Pharmaceuticals by 33.2% in the 1st quarter. PNC Financial Services Group Inc. now owns 16,832 shares of the company's stock valued at $52,000 after purchasing an additional 4,199 shares during the last quarter. Finally, Sequoia Financial Advisors LLC lifted its holdings in Recursion Pharmaceuticals by 51.5% in the 1st quarter. Sequoia Financial Advisors LLC now owns 15,162 shares of the company's stock valued at $47,000 after purchasing an additional 5,156 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 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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