Recursion Pharmaceuticals (NASDAQ:RXRX) Stock Price Down 5.3% - Here's What Happened

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) shares fell 5.3% on Monday . The stock traded as low as $5.48 and last traded at $5.47. 3,194,443 shares changed 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.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on RXRX. Needham & Company LLC reissued a "buy" rating and issued a $8.00 price objective on shares of Recursion Pharmaceuticals in a research report on Tuesday, July 8th. Morgan Stanley began coverage on Recursion Pharmaceuticals in a research report on Thursday, July 3rd. They issued an "equal weight" rating and a $5.00 price objective for the company. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $7.00.

Recursion Pharmaceuticals Stock Up 1.4%

The business has a 50 day moving average of $5.47 and a 200 day moving average of $5.80. The company has a debt-to-equity ratio of 0.02, a current ratio of 3.58 and a quick ratio of 3.58. The firm has a market capitalization of $2.10 billion, a price-to-earnings ratio of -2.71 and a beta of 0.93.

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

Insider Transactions at Recursion Pharmaceuticals

In other Recursion Pharmaceuticals news, insider Najat Khan sold 36,599 shares of the stock in a transaction on Monday, August 18th. The stock was sold at an average price of $5.52, for a total transaction of $202,026.48. Following the completion of the transaction, the insider directly owned 668,197 shares in the company, valued at $3,688,447.44. This represents a 5.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 8.43% of the stock is owned by corporate insiders.

Institutional Trading of Recursion Pharmaceuticals

A number of hedge funds and other institutional investors have recently made changes to their positions in RXRX. Brighton Jones LLC increased its stake in shares of Recursion Pharmaceuticals by 49.4% in the fourth quarter. Brighton Jones LLC now owns 20,261 shares of the company's stock valued at $137,000 after buying an additional 6,699 shares in the last quarter. Wells Fargo & Company MN increased its stake in shares of Recursion Pharmaceuticals by 298.5% in the fourth quarter. Wells Fargo & Company MN now owns 458,321 shares of the company's stock valued at $3,098,000 after buying an additional 343,304 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Recursion Pharmaceuticals by 5.3% in the fourth quarter. Envestnet Asset Management Inc. now owns 231,756 shares of the company's stock valued at $1,567,000 after buying an additional 11,646 shares in the last quarter. Invesco Ltd. increased its stake in shares of Recursion Pharmaceuticals by 54.6% in the fourth quarter. Invesco Ltd. now owns 178,619 shares of the company's stock valued at $1,207,000 after buying an additional 63,068 shares in the last quarter. Finally, Legal & General Group Plc increased its stake in shares of Recursion Pharmaceuticals by 26.7% in the fourth quarter. Legal & General Group Plc now owns 253,426 shares of the company's stock valued at $1,713,000 after buying an additional 53,458 shares in the last quarter. 89.06% of the stock is currently owned by institutional investors and hedge funds.

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.