Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Up 10.8% - Here's Why

Key Points

• Shares of Recursion jumped 10.8% to $5.106 on Thursday, with ~10.6M shares traded (about 47% below the average); market capitalization is roughly $2.58 billion.
• Wall Street sentiment is mixed: the consensus rating is "Hold" with a $9.40 price target, though Morgan Stanley, UBS and JPMorgan recently set $11 targets and JPMorgan upgraded to overweight.
• Fundamentals remain weak — the company slightly beat EPS expectations (‑$0.36 vs. ‑$0.38) but reported revenue down ~80% year‑over‑year and very large negative margins; insiders have been selling recent shares (≈585,786 sold last quarter), while institutions hold ~89% of the stock.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) rose 10.8% on Thursday . The company traded as high as $4.98 and last traded at $5.1060. Approximately 10,575,171 shares were traded during trading, a decline of 47% from the average daily volume of 19,982,045 shares. The stock had previously closed at $4.61.

Wall Street Analyst Weigh In

RXRX has been the subject of a number of recent research reports. Morgan Stanley set a $11.00 target price on Recursion Pharmaceuticals in a research note on Wednesday, December 17th. UBS Group set a $11.00 price objective on shares of Recursion Pharmaceuticals in a report on Wednesday, December 17th. Weiss Ratings restated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Wednesday, October 8th. Finally, JPMorgan Chase & Co. upgraded shares of Recursion Pharmaceuticals from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $10.00 to $11.00 in a report on Wednesday, December 17th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $9.40.

Recursion Pharmaceuticals Stock Up 7.6%

The stock has a market capitalization of $2.58 billion, a price-to-earnings ratio of -2.76 and a beta of 0.95. The business has a 50-day moving average of $4.44 and a 200-day moving average of $5.03. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.60 and a current ratio of 4.60.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last posted its earnings results on Wednesday, November 5th. The company reported ($0.36) EPS for the quarter, beating analysts' consensus estimates of ($0.38) by $0.02. Recursion Pharmaceuticals had a negative net margin of 1,637.81% and a negative return on equity of 72.74%. The company had revenue of $5.18 million for the quarter, compared to analysts' expectations of $19.36 million. During the same quarter in the prior year, the company posted ($0.34) earnings per share. Recursion Pharmaceuticals's revenue for the quarter was down 80.1% compared to the same quarter last year. On average, sell-side analysts expect that Recursion Pharmaceuticals, Inc. will post -1.57 EPS for the current year.

Insider Activity at Recursion Pharmaceuticals

In other Recursion Pharmaceuticals news, Director Blake Borgeson sold 220,000 shares of the business's stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $4.36, for a total value of $959,200.00. Following the sale, the director owned 6,649,863 shares of the company's stock, valued at $28,993,402.68. The trade was a 3.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Ben R. Taylor sold 21,383 shares of the firm's stock in a transaction on Monday, December 29th. The stock was sold at an average price of $4.18, for a total value of $89,380.94. Following the transaction, the chief financial officer owned 761,550 shares of the company's stock, valued at approximately $3,183,279. This represents a 2.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 585,786 shares of company stock worth $2,558,598. Insiders own 8.43% of the company's stock.

Hedge Funds Weigh In On Recursion Pharmaceuticals

Several institutional investors have recently bought and sold shares of RXRX. Vanguard Group Inc. lifted its position in shares of Recursion Pharmaceuticals by 10.3% during the third quarter. Vanguard Group Inc. now owns 39,780,153 shares of the company's stock worth $194,127,000 after purchasing an additional 3,708,975 shares in the last quarter. ARK Investment Management LLC grew its holdings in shares of Recursion Pharmaceuticals by 1.7% in the third quarter. ARK Investment Management LLC now owns 33,545,499 shares of the company's stock valued at $163,702,000 after purchasing an additional 556,868 shares in the last quarter. Geode Capital Management LLC increased its stake in Recursion Pharmaceuticals by 20.7% during the 2nd quarter. Geode Capital Management LLC now owns 7,776,408 shares of the company's stock worth $39,353,000 after buying an additional 1,332,428 shares during the period. Norges Bank acquired a new stake in Recursion Pharmaceuticals during the 2nd quarter worth approximately $16,040,000. Finally, Two Sigma Investments LP lifted its holdings in Recursion Pharmaceuticals by 109.9% during the 3rd quarter. Two Sigma Investments LP now owns 2,450,805 shares of the company's stock worth $11,960,000 after buying an additional 1,282,992 shares in the last quarter. 89.06% of the stock is 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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