Recursion Pharmaceuticals (NASDAQ:RXRX) Trading Up 8.5% - Should You Buy?

Key Points

• Recursion Pharmaceuticals (NASDAQ: RXRX) rose 8.5% on Wednesday, trading as high as $3.75 and closing around $3.98 after light volume relative to its average. The move came amid ongoing volatility in the stock.
• Analyst sentiment is mixed but leans cautious: the stock has a consensus rating of Hold and an average price target of $8.10. Recent calls ranged from a sell rating to buy and overweight ratings, with JPMorgan lowering its target to $10.00.
• The company recently reported a smaller-than-expected loss of ($0.22) EPS, but revenue of $6.47 million fell well short of estimates and dropped 56.8% year over year. Insiders have also been selling shares, even as institutional ownership remains high at 89.06%.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) shares rose 8.5% during trading on Wednesday . The stock traded as high as $3.75 and last traded at $3.9810. 1,791,736 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 17,579,939 shares. The stock had previously closed at $3.67.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on RXRX. Weiss Ratings reissued a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a report on Tuesday, April 21st. JPMorgan Chase & Co. reduced their target price on Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating for the company in a report on Thursday, April 30th. Wall Street Zen cut Recursion Pharmaceuticals from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. Morgan Stanley raised their price objective 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. Finally, Needham & Company LLC reissued a "buy" rating and issued a $8.00 price target on shares of Recursion Pharmaceuticals in a report on Thursday, May 7th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $8.10.

Recursion Pharmaceuticals Price Performance

The stock has a market capitalization of $1.96 billion, a PE ratio of -3.09 and a beta of 1.04. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.47 and a quick ratio of 5.47. The firm's 50 day simple moving average is $3.30 and its 200 day simple moving average is $3.67.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.08. The business had revenue of $6.47 million during the quarter, compared to analyst estimates of $15.78 million. Recursion Pharmaceuticals had a negative net margin of 842.95% and a negative return on equity of 54.33%. The company's revenue was down 56.8% on a year-over-year basis. During the same period in the prior year, the business posted ($0.50) earnings per share. As a group, equities analysts forecast that Recursion Pharmaceuticals, Inc. will post -0.99 EPS for the current fiscal year.

Insider Activity

In related news, Director Blake Borgeson sold 30,000 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $3.68, for a total transaction of $110,400.00. Following the transaction, the director owned 6,169,863 shares in the company, valued at $22,705,095.84. The trade was a 0.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 that occurred on Friday, June 5th. The shares were sold at an average price of $3.58, for a total value of $84,445.04. Following the transaction, 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. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 121,937 shares of company stock worth $421,574 over the last three months. 6.65% of the stock is owned by insiders.

Institutional Trading of Recursion Pharmaceuticals

Several large investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its position in shares of Recursion Pharmaceuticals by 49.4% in the 4th quarter. Brighton Jones LLC now owns 20,261 shares of the company's stock worth $137,000 after purchasing an additional 6,699 shares during the period. Royal Bank of Canada lifted its holdings in Recursion Pharmaceuticals by 627.6% in the first quarter. Royal Bank of Canada now owns 269,013 shares of the company's stock worth $1,423,000 after buying an additional 232,038 shares during the period. AQR Capital Management LLC purchased a new stake in Recursion Pharmaceuticals in the first quarter worth about $890,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Recursion Pharmaceuticals by 7.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 177,434 shares of the company's stock valued at $953,000 after acquiring an additional 12,372 shares in the last quarter. Finally, Focus Partners Wealth purchased a new position in shares of Recursion Pharmaceuticals during the 1st quarter worth approximately $77,000. Institutional investors own 89.06% of the company's stock.

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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