Recursion Pharmaceuticals Target of Unusually Large Options Trading (NASDAQ:RXRX)

Key Points

• RXRX saw unusually heavy options activity, with traders buying 50,051 call options on Wednesday, about 298% above the stock’s normal daily volume.
• Company insiders have been selling shares, including CEO Najat Khan and Director Blake Borgeson, with insiders selling 96,254 shares worth $320,369 over the past 90 days.
• Recursion’s latest earnings beat EPS expectations but missed revenue estimates, reporting a smaller-than-expected loss of $0.22 per share while revenue fell 56.8% year over year to $6.47 million.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) was the recipient of some unusual options trading on Wednesday. Traders acquired 50,051 call options on the company. This is an increase of 298% compared to the typical daily volume of 12,577 call options.

Insider Buying and Selling at Recursion Pharmaceuticals

In other Recursion Pharmaceuticals news, CEO Najat Khan sold 28,298 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $3.35, for a total value of $94,798.30. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Blake Borgeson sold 30,000 shares of the company'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 transaction, the director directly owned 6,199,863 shares of the company's stock, valued at $21,823,517.76. This represents a 0.48% 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 96,254 shares of company stock valued at $320,369 over the last 90 days. 8.43% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Recursion Pharmaceuticals

Several hedge funds and other institutional investors have recently made changes to their positions in RXRX. International Assets Investment Management LLC purchased a new position in Recursion Pharmaceuticals in the 4th quarter worth approximately $31,000. Integral Investment Advisors Inc. acquired a new stake in shares of Recursion Pharmaceuticals in the first quarter valued at approximately $39,000. Sequoia Financial Advisors LLC acquired a new stake in shares of Recursion Pharmaceuticals in the fourth quarter valued at approximately $41,000. MQS Management LLC purchased a new position in Recursion Pharmaceuticals during the first quarter worth approximately $41,000. Finally, Allworth Financial LP boosted its stake in Recursion Pharmaceuticals by 85.6% during 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 last quarter. Hedge funds and other institutional investors own 89.06% of the company's stock.

Recursion Pharmaceuticals Stock Performance

NASDAQ:RXRX traded up $0.22 during trading hours on Wednesday, reaching $3.19. The company had a trading volume of 16,224,865 shares, compared to its average volume of 16,596,818. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.47 and a quick ratio of 5.47. Recursion Pharmaceuticals has a 1-year low of $2.77 and a 1-year high of $7.18. The business's 50 day moving average price is $3.27 and its 200-day moving average price is $3.87. The firm has a market cap of $1.69 billion, a PE ratio of -2.64 and a beta of 1.05.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported ($0.22) earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $6.47 million during the quarter, compared to analyst estimates of $15.78 million. During the same period in the previous year, the firm earned ($0.50) EPS. The business's quarterly revenue was down 56.8% on a year-over-year basis. Research analysts forecast that Recursion Pharmaceuticals will post -1.02 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on RXRX shares. Bank of America dropped their price target on Recursion Pharmaceuticals from $7.00 to $6.00 and set a "neutral" rating for the company in a research note on Wednesday, February 25th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research report on Tuesday, April 21st. Needham & Company LLC reiterated a "buy" rating and issued a $8.00 target price on shares of Recursion Pharmaceuticals in a research note on Thursday, May 7th. JPMorgan Chase & Co. decreased their price target on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. Finally, Wall Street Zen downgraded shares of Recursion Pharmaceuticals from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $8.10.

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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