Recursion Pharmaceuticals (NASDAQ:RXRX) Trading Up 8.7% - Should You Buy?

Key Points

• Recursion Pharmaceuticals (NASDAQ:RXRX) experienced an 8.7% increase in stock price, trading as high as $4.94, despite a significant drop in trading volume.
• Equity analysts have set a consensus target price of $7.25, with Needham & Company rating it as a "buy" with an $8.00 target, while Morgan Stanley set an "equal weight" rating at $5.00.
• In its latest earnings report, Recursion Pharmaceuticals reported a loss of $0.41 EPS, which was below analyst expectations, but its revenue increased by 33.3% year-over-year, reaching $19.10 million.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s share price rose 8.7% during trading on Thursday . The stock traded as high as $4.85 and last traded at $4.94. Approximately 7,336,150 shares changed hands during trading, a decline of 69% from the average daily volume of 23,921,873 shares. The stock had previously closed at $4.54.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Needham & Company LLC restated a "buy" rating and issued a $8.00 price objective on shares of Recursion Pharmaceuticals in a research note on Thursday. Morgan Stanley started coverage on shares of Recursion Pharmaceuticals in a report on Thursday, July 3rd. They issued an "equal weight" rating and a $5.00 price target on the stock. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $7.25.

Recursion Pharmaceuticals Price Performance

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 stock has a market capitalization of $2.07 billion, a P/E ratio of -2.68 and a beta of 0.91. The company's 50 day simple moving average is $5.34 and its two-hundred day simple moving average is $5.29.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported ($0.41) EPS for the quarter, missing the consensus estimate 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 company had revenue of $19.10 million for the quarter, compared to the consensus estimate of $15.38 million. During the same period last year, the company earned ($0.40) earnings per share. Recursion Pharmaceuticals's revenue for the quarter was up 33.3% compared to the same quarter last year. As a group, equities analysts expect that Recursion Pharmaceuticals, Inc. will post -1.57 EPS for the current fiscal year.

Insiders Place Their Bets

In other Recursion Pharmaceuticals news, insider Najat Khan sold 36,599 shares of the stock in a transaction on Monday, August 18th. The shares were sold at an average price of $5.52, for a total value of $202,026.48. Following the sale, the insider directly owned 668,197 shares in the company, 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 document filed with the SEC, which is accessible through the SEC website. Company insiders own 8.43% of the company's stock.

Institutional Investors Weigh In On Recursion Pharmaceuticals

Several hedge funds have recently bought and sold shares of the company. TD Waterhouse Canada Inc. increased its position in shares of Recursion Pharmaceuticals by 64.1% during the second quarter. TD Waterhouse Canada Inc. now owns 5,631 shares of the company's stock worth $29,000 after acquiring an additional 2,200 shares in the last quarter. AlphaQuest LLC bought a new stake in shares of Recursion Pharmaceuticals during the first quarter worth $36,000. GAMMA Investing LLC increased its position in shares of Recursion Pharmaceuticals by 39.0% during the first quarter. GAMMA Investing LLC now owns 7,224 shares of the company's stock worth $38,000 after acquiring an additional 2,026 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of Recursion Pharmaceuticals by 97.2% during the second quarter. Caitong International Asset Management Co. Ltd now owns 9,019 shares of the company's stock worth $46,000 after acquiring an additional 4,446 shares in the last quarter. Finally, Janney Montgomery Scott LLC bought a new stake in shares of Recursion Pharmaceuticals during the second quarter worth $51,000. 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.