Recursion Pharmaceuticals (NASDAQ:RXRX) Sets New 52-Week Low - Here's What Happened

Key Points

• Recursion Pharmaceuticals (RXRX) hit a new 52-week low, trading as low as $2.80 after closing at $2.89 the prior day.
• Recent analyst sentiment is mixed, with a consensus Hold rating and an average price target of $8.10; several firms recently adjusted their targets, including Needham reiterating a buy and JPMorgan trimming its target to $10.
• The company’s latest earnings showed a narrower-than-expected loss of ($0.22) EPS, but revenue of $6.47 million fell well short of estimates and dropped 56.8% from a year earlier.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $2.80 and last traded at $2.8150, with a volume of 2991418 shares. The stock had previously closed at $2.89.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Needham & Company LLC restated a "buy" rating and issued a $8.00 price objective on shares of Recursion Pharmaceuticals in a research note on Thursday, May 7th. JPMorgan Chase & Co. lowered their price objective on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating on the stock in a research note on Thursday, April 30th. Morgan Stanley raised their price objective on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the stock an "equal weight" rating in a research note on Thursday, May 14th. Bank of America lowered their price objective on shares of Recursion Pharmaceuticals from $7.00 to $6.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 25th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $8.10.

Recursion Pharmaceuticals Stock Performance

The stock has a market capitalization of $1.49 billion, a P/E ratio of -2.35 and a beta of 1.05. The firm has a 50-day moving average of $3.32 and a 200 day moving average of $3.97. The company has a quick ratio of 5.47, a current ratio of 5.47 and a debt-to-equity ratio of 0.01.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.30) by $0.08. The firm had revenue of $6.47 million during the quarter, compared to analysts' expectations of $15.78 million. Recursion Pharmaceuticals had a negative return on equity of 54.33% and a negative net margin of 842.95%.Recursion Pharmaceuticals's quarterly revenue was down 56.8% compared to the same quarter last year. During the same period last year, the business earned ($0.50) earnings per share. Research analysts anticipate that Recursion Pharmaceuticals, Inc. will post -1.05 EPS for the current fiscal year.

Insider Activity at Recursion Pharmaceuticals

In related news, CFO Ben R. Taylor sold 13,426 shares of Recursion Pharmaceuticals stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $3.08, for a total value of $41,352.08. Following the completion of the transaction, the chief financial officer directly owned 1,195,349 shares of the company's stock, valued at $3,681,674.92. The trade was a 1.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Najat Khan sold 28,298 shares of Recursion Pharmaceuticals stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $3.35, for a total value of $94,798.30. Following the completion of the transaction, the chief executive officer directly owned 2,262,085 shares of the company's stock, valued at $7,577,984.75. This represents a 1.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 109,680 shares of company stock valued at $361,721 over the last ninety days. 8.43% of the stock is owned by insiders.

Hedge Funds Weigh In On Recursion Pharmaceuticals

Institutional investors have recently modified their holdings of the stock. ARK Investment Management LLC grew its position in shares of Recursion Pharmaceuticals by 1.7% during the 3rd quarter. ARK Investment Management LLC now owns 33,545,499 shares of the company's stock worth $163,702,000 after buying an additional 556,868 shares during the period. Vanguard Group Inc. grew its position in shares of Recursion Pharmaceuticals by 10.3% during the 3rd quarter. Vanguard Group Inc. now owns 39,780,153 shares of the company's stock worth $194,127,000 after buying an additional 3,708,975 shares during the period. Rafferty Asset Management LLC grew its position in shares of Recursion Pharmaceuticals by 110.6% during the 3rd quarter. Rafferty Asset Management LLC now owns 750,191 shares of the company's stock worth $3,661,000 after buying an additional 394,022 shares during the period. DNB Asset Management AS acquired a new position in shares of Recursion Pharmaceuticals during the 3rd quarter worth about $1,531,000. Finally, IQ EQ FUND MANAGEMENT IRELAND Ltd grew its position in shares of Recursion Pharmaceuticals by 94.8% during the 3rd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 1,774,995 shares of the company's stock worth $8,662,000 after buying an additional 863,910 shares during the period. 89.06% of the stock is currently owned by institutional investors and hedge funds.

About Recursion Pharmaceuticals

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.

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