Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Up - Time to Buy?

Key Points

• Recursion Pharmaceuticals' shares opened at $6.22, up from a previous close of $5.86, with a last traded price of $6.86.
• Analysts differ in their outlook, with Needham & Company setting a $8.00 target price while Morgan Stanley has an $5.00 target, leading to an average rating of "Hold" with a consensus target price of $7.25.
• The company's latest earnings showed a revenue increase of 33.3% year-over-year, reporting $19.10 million, although it missed EPS estimates at ($0.41) per share.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $5.86, but opened at $6.22. Recursion Pharmaceuticals shares last traded at $6.86, with a volume of 48,135,696 shares trading hands.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Needham & Company LLC reiterated a "buy" rating and issued a $8.00 price target on shares of Recursion Pharmaceuticals in a research note on Thursday, September 11th. Morgan Stanley assumed coverage on shares of Recursion Pharmaceuticals in a research report on Thursday, July 3rd. They set an "equal weight" rating and a $5.00 target price on the stock. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $7.25.

Recursion Pharmaceuticals Trading Up 14.0%

The company has a quick ratio of 3.58, a current ratio of 3.58 and a debt-to-equity ratio of 0.02. The company has a fifty day moving average of $5.13 and a two-hundred day moving average of $5.13. The stock has a market capitalization of $2.90 billion, a price-to-earnings ratio of -3.75 and a beta of 0.91.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last released 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). Recursion Pharmaceuticals had a negative net margin of 1,004.91% and a negative return on equity of 76.09%. The business had revenue of $19.10 million during the quarter, compared to analyst estimates of $15.38 million. During the same period last year, the business posted ($0.40) EPS. Recursion Pharmaceuticals's revenue was up 33.3% compared to the same quarter last year. On average, research analysts expect that Recursion Pharmaceuticals, Inc. will post -1.57 EPS for the current year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Recursion Pharmaceuticals

Hedge funds and other institutional investors have recently bought and sold shares of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Recursion Pharmaceuticals by 183.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 6,408,524 shares of the company's stock worth $33,901,000 after buying an additional 4,149,346 shares during the last quarter. Norges Bank acquired a new position in shares of Recursion Pharmaceuticals during the 2nd quarter worth $16,040,000. ARK Investment Management LLC raised its stake in shares of Recursion Pharmaceuticals by 7.6% during the 1st quarter. ARK Investment Management LLC now owns 34,815,502 shares of the company's stock worth $184,174,000 after buying an additional 2,469,104 shares during the last quarter. Nuveen LLC acquired a new position in shares of Recursion Pharmaceuticals during the 1st quarter worth $10,118,000. Finally, Kinnevik AB publ raised its stake in shares of Recursion Pharmaceuticals by 12.8% during the 1st quarter. Kinnevik AB publ now owns 13,434,171 shares of the company's stock worth $71,067,000 after buying an additional 1,528,503 shares during the last quarter. 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.

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