Recursion Pharmaceuticals (NASDAQ:RXRX) Cut to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Recursion Pharmaceuticals to “strong sell,” although the broader analyst consensus remains “Hold” with an average price target of $8.10.
• Recursion reported a quarterly loss of $0.25 per share, slightly worse than estimates, while revenue of $7.67 million fell short of the $10.97 million consensus forecast. The stock opened at $3.22 and trades near the lower end of its 52-week range.
• Insiders sold 131,937 shares worth approximately $478,874 in the past quarter, while institutional investors own a substantial 89.06% of the company’s stock.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a note issued to investors on Saturday.

Several other equities research analysts also recently commented on the company. Needham & Company LLC restated a "buy" rating and set a $8.00 price objective on shares of Recursion Pharmaceuticals in a report on Thursday, May 7th. JPMorgan Chase & Co. cut their target price on Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating on the stock in a report on Thursday, April 30th. Morgan Stanley lifted their price target on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an "equal weight" rating in a research report on Thursday, May 14th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Friday, July 17th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $8.10.

Recursion Pharmaceuticals Stock Performance

Shares of RXRX opened at $3.22 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.03 and a quick ratio of 5.47. The stock has a 50-day moving average of $3.32 and a 200-day moving average of $3.45. The company has a market cap of $1.71 billion, a PE ratio of -3.10 and a beta of 1.03. Recursion Pharmaceuticals has a one year low of $2.77 and a one year high of $7.18.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last issued 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 firm had revenue of $7.67 million during the quarter, compared to the consensus estimate of $10.97 million. During the same period in the previous year, the firm earned ($0.41) earnings per share. On average, equities research analysts predict that Recursion Pharmaceuticals will post -0.9 EPS for the current fiscal year.

Insider Transactions at Recursion Pharmaceuticals

In other news, Director Blake Borgeson sold 40,000 shares of the stock in a transaction that occurred 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 completion of the sale, the director directly owned 6,218,287 shares of the company's stock, valued at $24,624,416.52. This represents a 0.64% decrease in their ownership of the stock. The sale 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 23,588 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $3.58, for a total value of $84,445.04. Following the completion of the transaction, the chief executive officer owned 2,175,796 shares in the company, valued at $7,789,349.68. This represents 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. Insiders have sold a total of 131,937 shares of company stock valued at $478,874 in the last quarter. Company insiders own 6.65% of the company's stock.

Institutional Investors Weigh In On Recursion Pharmaceuticals

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in Recursion Pharmaceuticals by 18.6% during the 4th quarter. Vanguard Group Inc. now owns 47,187,759 shares of the company's stock valued at $192,998,000 after acquiring an additional 7,407,606 shares in the last quarter. ARK Investment Management LLC grew its stake in shares of Recursion Pharmaceuticals by 11.2% in the 4th quarter. ARK Investment Management LLC now owns 37,316,856 shares of the company's stock worth $152,626,000 after acquiring an additional 3,771,357 shares in the last quarter. State Street Corp grew its stake in shares of Recursion Pharmaceuticals by 38.7% in the 4th quarter. State Street Corp now owns 25,333,888 shares of the company's stock worth $103,616,000 after acquiring an additional 7,064,963 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Recursion Pharmaceuticals by 13.6% in the fourth quarter. Geode Capital Management LLC now owns 10,934,252 shares of the company's stock valued at $44,731,000 after purchasing an additional 1,310,695 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Recursion Pharmaceuticals in the fourth quarter valued at about $23,473,000. 89.06% of the stock is owned by hedge funds and other institutional investors.

Recursion Pharmaceuticals Company Profile

Recursion Pharmaceuticals, Inc NASDAQ: RXRX is a biopharmaceutical company that combines advanced automation, artificial intelligence and high-throughput biology to discover and develop novel therapeutics. The company's proprietary platform integrates deep-learning algorithms with large-scale cellular imaging and chemical biology, enabling the rapid identification of potential drug candidates across a range of indications. By automating complex laboratory workflows and leveraging computational models, Recursion aims to accelerate the drug discovery process and expand the scope of targets that can be addressed.

At the core of Recursion's offering is its digital biology platform, which captures billions of cell images under varying chemical and genetic perturbations.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source