Stock Traders Purchase High Volume of Put Options on Recursion Pharmaceuticals (NASDAQ:RXRX)

Key Points

• Put-option activity increased notably: Investors purchased 20,530 put options on Recursion Pharmaceuticals, 32% above the typical volume of 15,579, signaling elevated bearish or hedging interest.
• Analyst sentiment remains mixed: Ratings range from buy to strong sell, with a consensus “Hold” rating and an average price target of $8.10 versus the stock’s recent price of $3.31.
• Financial results fell short of expectations: Recursion reported a quarterly loss of $0.25 per share versus the $0.24 expected, while revenue of $7.67 million missed the $10.97 million consensus estimate.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) saw some unusual options trading on Tuesday. Investors acquired 20,530 put options on the stock. This represents an increase of 32% compared to the typical volume of 15,579 put options.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on RXRX shares. Needham & Company LLC reaffirmed a "buy" rating and set a $8.00 price target on shares of Recursion Pharmaceuticals in a research report on Thursday, May 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a report on Friday, July 17th. Wall Street Zen lowered Recursion Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research report on Saturday. JPMorgan Chase & Co. lowered their price target on Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating for the company in a report on Thursday, April 30th. Finally, Morgan Stanley upped their price target on Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an "equal weight" rating in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $8.10.

Insider Transactions at Recursion Pharmaceuticals

In related news, CEO Najat Khan sold 23,588 shares of the company's stock in a transaction 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 sale, the chief executive officer directly owned 2,175,796 shares of the company's stock, valued at $7,789,349.68. This represents a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 30,000 shares of the 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 transaction, the director owned 6,188,287 shares in the company, valued at $20,111,932.75. This trade represents a 0.48% decrease in their ownership of the stock. 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. Over the last ninety days, insiders have sold 131,937 shares of company stock worth $478,874. Corporate insiders own 6.65% of the company's stock.

Institutional Trading of Recursion Pharmaceuticals

A number of large investors have recently modified their holdings of RXRX. International Assets Investment Management LLC acquired a new position in Recursion Pharmaceuticals during the 4th quarter valued at about $31,000. Sequoia Financial Advisors LLC bought a new stake in shares of Recursion Pharmaceuticals during the fourth quarter valued at approximately $41,000. NewEdge Advisors LLC boosted 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 during the period. Quantbot Technologies LP acquired a new position in shares of Recursion Pharmaceuticals during the third quarter worth approximately $61,000. Finally, Daiwa Securities Group Inc. grew its holdings in Recursion Pharmaceuticals by 29.3% in the 2nd 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 in the last quarter. Institutional investors and hedge funds own 89.06% of the company's stock.

Recursion Pharmaceuticals Stock Performance

Shares of NASDAQ RXRX traded up $0.03 during midday trading on Tuesday, hitting $3.31. The company's stock had a trading volume of 7,962,734 shares, compared to its average volume of 18,321,672. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.03 and a current ratio of 5.03. Recursion Pharmaceuticals has a 1-year low of $2.77 and a 1-year high of $7.18. The firm's fifty day moving average price is $3.31 and its 200-day moving average price is $3.44. The firm has a market cap of $1.76 billion, a P/E ratio of -3.19 and a beta of 1.03.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.25) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.01). The business had revenue of $7.67 million during the quarter, compared to the consensus estimate of $10.97 million. Recursion Pharmaceuticals had a negative return on equity of 50.41% and a negative net margin of 945.94%.During the same period in the prior year, the business earned ($0.41) EPS. On average, sell-side analysts forecast that Recursion Pharmaceuticals will post -0.9 EPS for the current fiscal year.

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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