Recursion Pharmaceuticals (NASDAQ:RXRX) Trading 8.7% Higher - Here's What Happened

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) rose 8.7% during trading on Thursday . The company traded as high as $4.85 and last traded at $4.94. Approximately 7,336,150 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 23,921,873 shares. The stock had previously closed at $4.54.

Analysts Set New Price Targets

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

Recursion Pharmaceuticals Trading Up 8.3%

The business's fifty day simple moving average is $5.36 and its 200 day simple moving average is $5.38. The stock has a market cap of $2.13 billion, a P/E ratio of -2.77 and a beta of 0.91. The company has a current ratio of 3.58, a quick ratio of 3.58 and a debt-to-equity ratio of 0.02.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported ($0.41) earnings per share (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 quarter last year, the business earned ($0.40) earnings per share. Recursion Pharmaceuticals's revenue for the quarter was up 33.3% on a year-over-year basis. As a group, analysts expect that Recursion Pharmaceuticals, Inc. will post -1.57 EPS for the current year.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. TD Waterhouse Canada Inc. raised its stake in 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 acquired a new position in Recursion Pharmaceuticals during the first quarter worth about $36,000. GAMMA Investing LLC boosted its holdings in Recursion Pharmaceuticals by 39.0% in the first quarter. GAMMA Investing LLC now owns 7,224 shares of the company's stock valued at $38,000 after acquiring an additional 2,026 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in Recursion Pharmaceuticals by 97.2% in the second quarter. Caitong International Asset Management Co. Ltd now owns 9,019 shares of the company's stock valued at $46,000 after acquiring an additional 4,446 shares during the last quarter. Finally, Janney Montgomery Scott LLC bought a new stake in Recursion Pharmaceuticals in the second quarter valued at approximately $51,000. Institutional investors and hedge funds own 89.06% of the company's stock.

Recursion Pharmaceuticals Company Profile

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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