Recursion Pharmaceuticals (NASDAQ:RXRX) Trading 8.9% Higher - Here's Why

Key Points

• Recursion Pharmaceuticals shares rose 8.9% on Wednesday, trading as high as $3.27 after closing at $2.97 in the prior session.
• Analyst sentiment remains mixed, with recent target changes from major firms but an overall consensus rating of “Hold” and an average price target of $8.10.
• The company beat quarterly EPS estimates by reporting ($0.22) per share versus expected ($0.30), though revenue came in below forecasts at $6.47 million.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report)'s share price traded up 8.9% on Wednesday . The stock traded as high as $3.27 and last traded at $3.2350. 9,694,861 shares traded hands during trading, a decline of 41% from the average session volume of 16,502,961 shares. The stock had previously closed at $2.97.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Bank of America lowered their price target on shares of Recursion Pharmaceuticals from $7.00 to $6.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 25th. Morgan Stanley boosted their price target on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an "equal weight" rating in a research report on Thursday, May 14th. JPMorgan Chase & Co. lowered their price target on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Thursday, April 30th. Weiss Ratings reissued a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Tuesday, April 21st. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $8.00 target price on shares of Recursion Pharmaceuticals in a report on Thursday, May 7th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $8.10.

Recursion Pharmaceuticals Trading Up 6.9%

The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.47 and a current ratio of 5.47. The firm has a market cap of $1.68 billion, a PE ratio of -2.65 and a beta of 1.05. The stock's 50 day simple moving average is $3.27 and its 200 day simple moving average is $3.87.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.22) EPS for the quarter, topping analysts' consensus estimates 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 business had revenue of $6.47 million during the quarter, compared to analysts' expectations of $15.78 million. During the same quarter in the previous year, the company earned ($0.50) EPS. The business's quarterly revenue was down 56.8% compared to the same quarter last year. On average, sell-side analysts forecast that Recursion Pharmaceuticals, Inc. will post -1.02 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Najat Khan sold 28,298 shares of the company's stock in a transaction 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 completion of the sale, the chief executive officer directly owned 2,262,085 shares in the company, valued at $7,577,984.75. This represents a 1.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Blake Borgeson sold 30,000 shares of the firm's stock in a transaction 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 completion of the sale, the director directly owned 6,199,863 shares in the company, valued at approximately $21,823,517.76. This trade represents a 0.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 96,254 shares of company stock valued at $320,369. Corporate insiders own 8.43% of the company's stock.

Institutional Trading of Recursion Pharmaceuticals

Several large investors have recently modified their holdings of RXRX. International Assets Investment Management LLC purchased a new position in Recursion Pharmaceuticals during the 4th quarter valued at $31,000. Allworth Financial LP lifted its holdings in Recursion Pharmaceuticals by 85.6% in the third quarter. Allworth Financial LP now owns 9,548 shares of the company's stock worth $47,000 after buying an additional 4,403 shares during the period. Sequoia Financial Advisors LLC bought a new position in shares of Recursion Pharmaceuticals in the 4th quarter worth approximately $41,000. IFP Advisors Inc raised its position in shares of Recursion Pharmaceuticals by 81.5% in the 3rd quarter. IFP Advisors Inc now owns 10,355 shares of the company's stock worth $51,000 after acquiring an additional 4,650 shares in the last quarter. Finally, PFG Investments LLC bought a new position in shares of Recursion Pharmaceuticals in the 3rd quarter worth approximately $53,000. 89.06% of the stock is owned by 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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