Stock Traders Buy Large Volume of Call Options on Recursion Pharmaceuticals (NASDAQ:RXRX)

Key Points

• Traders bought 37,151 call options on Recursion (about 42% above typical call volume), signaling unusually strong bullish options activity for the day.
• RXRX shares traded up to $4.68 on heavy volume (64.5M vs. a 29.1M average), with a market cap around $2.43B and a 1‑year range of $3.79–$12.36.
• Analysts are mixed—consensus rating is "Hold" with a $9.50 target—after Recursion reported Q results with EPS of ($0.36) (slightly beating estimates) but revenue down ~80% year‑over‑year.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) saw some unusual options trading activity on Wednesday. Traders bought 37,151 call options on the company. This is an increase of approximately 42% compared to the typical volume of 26,190 call options.

Analysts Set New Price Targets

RXRX has been the subject of a number of recent analyst reports. Morgan Stanley set a $11.00 price objective on Recursion Pharmaceuticals in a research report on Wednesday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Wednesday, October 8th. UBS Group set a $11.00 price target on Recursion Pharmaceuticals in a research note on Wednesday. Needham & Company LLC restated a "buy" rating and set a $8.00 price objective on shares of Recursion Pharmaceuticals in a report on Thursday, September 11th. Finally, JPMorgan Chase & Co. raised shares of Recursion Pharmaceuticals from a "neutral" rating to an "overweight" rating and increased their price objective for the company from $10.00 to $11.00 in a research report on Wednesday. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Recursion Pharmaceuticals has a consensus rating of "Hold" and a consensus target price of $9.50.

Recursion Pharmaceuticals Stock Performance

RXRX traded up $0.48 during midday trading on Wednesday, hitting $4.68. 64,520,902 shares of the company were exchanged, compared to its average volume of 29,135,416. The company's 50 day simple moving average is $5.03 and its 200 day simple moving average is $5.14. The firm has a market capitalization of $2.43 billion, a price-to-earnings ratio of -2.60 and a beta of 0.94. Recursion Pharmaceuticals has a 1-year low of $3.79 and a 1-year high of $12.36. The company has a current ratio of 4.60, a quick ratio of 4.60 and a debt-to-equity ratio of 0.01.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last issued its earnings results on Wednesday, November 5th. The company reported ($0.36) EPS for the quarter, topping analysts' consensus estimates of ($0.38) by $0.02. The firm had revenue of $5.18 million for the quarter, compared to the consensus estimate of $19.36 million. Recursion Pharmaceuticals had a negative return on equity of 72.74% and a negative net margin of 1,637.81%.The company's revenue was down 80.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.34) earnings per share. As a group, sell-side analysts predict that Recursion Pharmaceuticals will post -1.57 earnings per share for the current year.

Insider Buying and Selling

In other Recursion Pharmaceuticals news, Director Blake Borgeson sold 220,000 shares of the firm's stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $4.37, for a total value of $961,400.00. Following the completion of the sale, the director directly owned 6,869,863 shares in the company, valued at $30,021,301.31. This trade represents a 3.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 8.43% of the stock is owned by insiders.

Institutional Investors Weigh In On Recursion Pharmaceuticals

Hedge funds and other institutional investors have recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Recursion Pharmaceuticals by 183.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 6,408,524 shares of the company's stock valued at $33,901,000 after purchasing an additional 4,149,346 shares during the period. Vanguard Group Inc. increased its holdings in Recursion Pharmaceuticals by 10.3% in the third quarter. Vanguard Group Inc. now owns 39,780,153 shares of the company's stock valued at $194,127,000 after buying an additional 3,708,975 shares in the last quarter. Norges Bank acquired a new position in shares of Recursion Pharmaceuticals in the second quarter worth about $16,040,000. Nuveen LLC purchased a new stake in shares of Recursion Pharmaceuticals during the 1st quarter worth about $10,118,000. Finally, Bank Pictet & Cie Europe AG purchased a new stake in shares of Recursion Pharmaceuticals during the 3rd quarter worth about $7,954,000. 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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