Recursion Pharmaceuticals (NASDAQ:RXRX) Trading 12.5% Higher - Here's What Happened

Key Points

• Recursion Pharmaceuticals shares jumped 12.5% on Thursday, trading as high as $3.76 after closing at $3.47 the prior day. Volume was lighter than usual, with about 6.75 million shares traded versus an average of 16.97 million.
• Analysts remain mixed on the stock, with recent target changes ranging from $5.50 to $10.00 and a consensus rating of Hold. The average price target currently stands at $8.10.
• The company recently reported a smaller-than-expected quarterly loss of ($0.22) per share, but revenue of $6.47 million fell well short of estimates and declined sharply year over year. Insider selling and heavy institutional ownership were also noted in the report.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s stock price traded up 12.5% during trading on Thursday . The stock traded as high as $3.76 and last traded at $3.9050. 6,754,697 shares were traded during trading, a decline of 60% from the average session volume of 16,972,451 shares. The stock had previously closed at $3.47.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Morgan Stanley lifted their price objective on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the stock an "equal weight" rating in a research note on Thursday, May 14th. Wall Street Zen lowered shares of Recursion Pharmaceuticals from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. Needham & Company LLC restated a "buy" rating and set a $8.00 price target on shares of Recursion Pharmaceuticals in a research report on Thursday, May 7th. Bank of America decreased their target price on shares of Recursion Pharmaceuticals from $7.00 to $6.00 and set a "neutral" rating on the stock in a report on Wednesday, February 25th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating on the stock in a report on Thursday, April 30th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $8.10.

Recursion Pharmaceuticals Stock Performance

The firm's fifty day moving average price is $3.29 and its 200 day moving average price is $3.82. The stock has a market capitalization of $2.04 billion, a price-to-earnings ratio of -3.21 and a beta of 1.04. The company has a current ratio of 5.47, a quick ratio of 5.47 and a debt-to-equity ratio of 0.01.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.30) by $0.08. Recursion Pharmaceuticals had a negative net margin of 842.95% and a negative return on equity of 54.33%. The firm had revenue of $6.47 million for the quarter, compared to the consensus estimate of $15.78 million. During the same period in the prior year, the firm earned ($0.50) EPS. The firm's revenue for the quarter was down 56.8% on a year-over-year basis. Analysts forecast that Recursion Pharmaceuticals, Inc. will post -1.02 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Najat Khan sold 28,298 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $3.35, for a total transaction of $94,798.30. Following the sale, the chief executive officer directly owned 2,262,085 shares of the company's stock, valued at $7,577,984.75. This represents a 1.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Blake Borgeson sold 30,000 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $3.52, for a total transaction of $105,600.00. Following the sale, the director directly owned 6,199,863 shares in the company, valued at approximately $21,823,517.76. The trade was a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 96,254 shares of company stock valued at $320,369 in the last ninety days. Company insiders own 8.43% of the company's stock.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of large investors have recently modified their holdings of RXRX. Vanguard Group Inc. increased its position in shares of Recursion Pharmaceuticals by 18.6% in the 4th quarter. Vanguard Group Inc. now owns 47,187,759 shares of the company's stock valued at $192,998,000 after purchasing an additional 7,407,606 shares during the last quarter. State Street Corp increased its position in shares of Recursion Pharmaceuticals by 38.7% in the 4th quarter. State Street Corp now owns 25,333,888 shares of the company's stock valued at $103,616,000 after purchasing an additional 7,064,963 shares during the last quarter. Norges Bank purchased a new stake in shares of Recursion Pharmaceuticals in the 4th quarter valued at approximately $23,473,000. ARK Investment Management LLC increased its position in shares of Recursion Pharmaceuticals by 11.2% in the 4th quarter. ARK Investment Management LLC now owns 37,316,856 shares of the company's stock valued at $152,626,000 after purchasing an additional 3,771,357 shares during the last quarter. Finally, Renaissance Technologies LLC purchased a new stake in shares of Recursion Pharmaceuticals in the 1st quarter valued at approximately $7,370,000. 89.06% of the stock is owned by hedge funds and other institutional investors.

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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