Recursion Pharmaceuticals (NASDAQ:RXRX) Stock Price Down 5.3% - Time to Sell?

Key Points

• Recursion Pharmaceuticals saw a share price decline of 5.3%, trading as low as $5.48 amid significantly reduced trading volume, with only about 3.19 million shares exchanged compared to a typical 24.83 million.
• Despite the drop, analysts remain cautious with a consensus rating of "Hold" and an average target price of $7.00, while Needham holds a "buy" rating with a target of $8.00.
• The company reported negative earnings per share of ($0.41) this quarter, which missed the expected estimate by ($0.06), although it achieved a year-over-year revenue increase of 33.3%.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s stock price traded down 5.3% during mid-day trading on Monday . The company traded as low as $5.48 and last traded at $5.47. 3,194,443 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 24,829,395 shares. The stock had previously closed at $5.77.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Morgan Stanley initiated coverage on Recursion Pharmaceuticals in a report on Thursday, July 3rd. They issued an "equal weight" rating and a $5.00 target price on the stock. Needham & Company LLC restated a "buy" rating and issued a $8.00 price target on shares of Recursion Pharmaceuticals in a report on Tuesday, July 8th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $7.00.

Recursion Pharmaceuticals Stock Performance

The stock's 50-day moving average is $5.46 and its 200-day moving average is $5.76. The stock has a market cap of $2.14 billion, a price-to-earnings ratio of -2.78 and a beta of 0.93. The company has a debt-to-equity ratio of 0.02, a current ratio of 3.58 and a quick ratio of 3.58.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported ($0.41) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.35) by ($0.06). Recursion Pharmaceuticals had a negative return on equity of 76.09% and a negative net margin of 1,004.91%.The firm had revenue of $19.10 million for the quarter, compared to analyst estimates of $15.38 million. During the same quarter last year, the business posted ($0.40) EPS. The firm's revenue was up 33.3% compared to the same quarter last year. Analysts anticipate that Recursion Pharmaceuticals, Inc. will post -1.57 EPS for the current fiscal year.

Insider Transactions at Recursion Pharmaceuticals

In related news, insider Najat Khan sold 36,599 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $5.52, for a total transaction of $202,026.48. Following the sale, the insider owned 668,197 shares in the company, valued at approximately $3,688,447.44. This trade represents a 5.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 8.43% of the company's stock.

Institutional Trading of Recursion Pharmaceuticals

A number of hedge funds have recently bought and sold shares of the company. Liontrust Investment Partners LLP increased its position in Recursion Pharmaceuticals by 18.0% during the second quarter. Liontrust Investment Partners LLP now owns 702,386 shares of the company's stock worth $3,554,000 after purchasing an additional 107,331 shares during the last quarter. Hudson Bay Capital Management LP increased its position in Recursion Pharmaceuticals by 18.0% during the second quarter. Hudson Bay Capital Management LP now owns 150,000 shares of the company's stock worth $759,000 after purchasing an additional 22,930 shares during the last quarter. Headlands Technologies LLC increased its position in Recursion Pharmaceuticals by 20.2% during the second quarter. Headlands Technologies LLC now owns 199,415 shares of the company's stock worth $1,009,000 after purchasing an additional 33,565 shares during the last quarter. Sender Co & Partners Inc. acquired a new position in Recursion Pharmaceuticals during the second quarter worth approximately $121,000. Finally, HRT Financial LP acquired a new position in Recursion Pharmaceuticals during the second quarter worth approximately $2,753,000. Institutional investors and hedge funds own 89.06% of the company's stock.

About Recursion Pharmaceuticals

Recursion Pharmaceuticals, Inc operates as a clinical-stage biotechnology company, engages in the decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery. The company develops REC-994, which is in Phase 2 clinical trial to treat cerebral cavernous malformation; REC-2282, which is in Phase 2/3 clinical trial for the treatment of neurofibromatosis type 2; REC-4881, which is in Phase 1b/2 clinical trial to treat familial adenomatous polyposis; REC-3964, which is in Phase 1 clinical trial to treat Clostridioides difficile infection; and REC-4881, which is in Phase 2 clinical trial to treat AXIN1 or APC mutant cancers.