Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Up 9.8% - Still a Buy?

Key Points

• Recursion Pharmaceuticals shares jumped 9.8% to about $3.39, while trading volume was slightly below its average.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $8.06, despite targets ranging from $5.30 to $10.00 and ratings from “Strong Sell” to “Buy.”
• The company continues to face weak fundamentals, reporting a quarterly loss of $0.25 per share and $7.67 million in revenue—both slightly below estimates—alongside a deeply negative net margin; insiders have also sold shares recently.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s share price traded up 9.8% on Wednesday . The stock traded as high as $3.36 and last traded at $3.3940. 17,051,622 shares were traded during trading, a decline of 6% from the average daily volume of 18,116,604 shares. The stock had previously closed at $3.09.

Analysts Set New Price Targets

Several brokerages have commented on RXRX. JPMorgan Chase & Co. lowered their target price on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. Morgan Stanley set a $5.30 price target on shares of Recursion Pharmaceuticals in a research report on Monday. Wall Street Zen lowered shares of Recursion Pharmaceuticals from a "sell" rating to a "strong sell" rating in a report on Saturday, August 8th. Needham & Company LLC restated a "buy" rating and issued a $8.00 price objective on shares of Recursion Pharmaceuticals in a research report on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Friday, July 17th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Recursion Pharmaceuticals presently has an average rating of "Hold" and an average price target of $8.06.

Recursion Pharmaceuticals Price Performance

The company's fifty day moving average price is $3.28 and its two-hundred day moving average price is $3.38. The company has a quick ratio of 5.03, a current ratio of 5.03 and a debt-to-equity ratio of 0.01. The company has a market cap of $1.81 billion, a price-to-earnings ratio of -3.26 and a beta of 1.03.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.25) EPS for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.01). The company had revenue of $7.67 million for the quarter, compared to analyst estimates of $10.97 million. Recursion Pharmaceuticals had a negative return on equity of 50.41% and a negative net margin of 945.94%.During the same quarter in the previous year, the business earned ($0.41) earnings per share. On average, equities research analysts forecast that Recursion Pharmaceuticals, Inc. will post -0.9 EPS for the current fiscal year.

Insider Transactions at Recursion Pharmaceuticals

In other news, Director Blake Borgeson sold 30,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $3.25, for a total transaction of $97,500.00. Following the completion of the transaction, the director directly owned 6,188,287 shares of the company's stock, valued at $20,111,932.75. This represents a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 23,588 shares of Recursion Pharmaceuticals stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $3.58, for a total value of $84,445.04. Following the completion of the sale, the chief executive officer directly owned 2,175,796 shares in the company, valued at approximately $7,789,349.68. This represents a 1.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 131,937 shares of company stock worth $478,874. Corporate insiders own 6.65% of the company's stock.

Institutional Investors Weigh In On Recursion Pharmaceuticals

Several hedge funds have recently bought and sold shares of the company. Brighton Jones LLC raised its holdings in Recursion Pharmaceuticals by 49.4% in the 4th quarter. Brighton Jones LLC now owns 20,261 shares of the company's stock valued at $137,000 after acquiring an additional 6,699 shares during the period. Royal Bank of Canada increased its holdings in shares of Recursion Pharmaceuticals by 627.6% during the first quarter. Royal Bank of Canada now owns 269,013 shares of the company's stock worth $1,423,000 after purchasing an additional 232,038 shares during the period. AQR Capital Management LLC acquired a new stake in shares of Recursion Pharmaceuticals in the first quarter valued at approximately $890,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Recursion Pharmaceuticals by 7.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 177,434 shares of the company's stock valued at $953,000 after buying an additional 12,372 shares in the last quarter. Finally, Focus Partners Wealth bought a new stake in shares of Recursion Pharmaceuticals in the first quarter valued at approximately $77,000. 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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