Recursion Pharmaceuticals (NASDAQ:RXRX) Trading Down 7% - Here's What Happened

Key Points

• Recursion Pharmaceuticals shares fell 7% to about $3.25, with 7.38 million shares traded—59% below average volume.
• The company’s latest quarterly results missed expectations, reporting an adjusted loss of $0.25 per share versus estimates of $0.24 and revenue of $7.67 million versus $10.97 million expected.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $8.06; insiders have also sold 131,937 shares over the past quarter under pre-arranged trading plans.

Shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) were down 7% during trading on Monday . The stock traded as low as $3.22 and last traded at $3.2550. 7,378,720 shares changed hands during trading, a decline of 59% from the average session volume of 18,182,264 shares. The stock had previously closed at $3.50.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on RXRX shares. Wall Street Zen downgraded shares of Recursion Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 8th. Weiss Ratings restated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Friday, July 17th. JPMorgan Chase & Co. cut their price target on 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 Recursion Pharmaceuticals in a report on Monday, August 17th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $8.00 price target on shares of Recursion Pharmaceuticals in a research report on Thursday, May 7th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $8.06.

Recursion Pharmaceuticals Price Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.03 and a current ratio of 5.03. The stock has a market capitalization of $1.74 billion, a PE ratio of -3.13 and a beta of 1.03. The stock's 50 day moving average is $3.30 and its two-hundred day moving average is $3.36.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.25) EPS for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.01). The firm had revenue of $7.67 million for the quarter, compared to analyst estimates of $10.97 million. Recursion Pharmaceuticals had a negative net margin of 945.94% and a negative return on equity of 50.41%. During the same period in the previous year, the company earned ($0.41) EPS. On average, equities analysts anticipate that Recursion Pharmaceuticals, Inc. will post -0.92 EPS for the current fiscal year.

Insider Activity at Recursion Pharmaceuticals

In other Recursion Pharmaceuticals news, Director Blake Borgeson sold 30,000 shares of Recursion Pharmaceuticals stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $3.25, for a total transaction of $97,500.00. Following the sale, the director owned 6,188,287 shares of the company's stock, valued at $20,111,932.75. The trade was a 0.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 23,588 shares of the company's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $3.58, for a total transaction of $84,445.04. Following the sale, the chief executive officer directly owned 2,175,796 shares of the company's stock, valued at $7,789,349.68. The trade was 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. Insiders have sold 131,937 shares of company stock valued at $478,874 over the last quarter. 6.65% of the stock is owned by company insiders.

Hedge Funds Weigh In On Recursion Pharmaceuticals

A number of institutional investors and hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC grew its position in shares of Recursion Pharmaceuticals by 28.1% during the second quarter. NewEdge Advisors LLC now owns 11,061 shares of the company's stock worth $56,000 after buying an additional 2,428 shares in the last quarter. Equitable Holdings Inc. grew its position in shares of Recursion Pharmaceuticals by 7.1% in the 3rd quarter. Equitable Holdings Inc. now owns 39,400 shares of the company's stock valued at $192,000 after buying an additional 2,600 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH grew its holdings in shares of Recursion Pharmaceuticals by 1.2% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 232,370 shares of the company's stock worth $954,000 after purchasing an additional 2,753 shares during the last quarter. Daiwa Securities Group Inc. increased its position in Recursion Pharmaceuticals by 29.3% during the second quarter. Daiwa Securities Group Inc. now owns 12,706 shares of the company's stock worth $64,000 after buying an additional 2,883 shares during the period. Finally, Ascent Wealth Partners LLC boosted its holdings in shares of Recursion Pharmaceuticals by 11.8% in the first quarter. Ascent Wealth Partners LLC now owns 28,081 shares of the company's stock valued at $86,000 after acquiring an additional 2,974 shares during the period. 89.06% of the stock is currently owned by institutional investors and hedge funds.

Recursion Pharmaceuticals Company Profile

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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