Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Down Following Weak Earnings

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) shares gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $3.31, but opened at $3.08. Recursion Pharmaceuticals shares last traded at $3.18, with a volume of 5,308,149 shares trading hands.

The company reported ($0.25) earnings per share (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 return on equity of 54.33% and a negative net margin of 842.95%.During the same quarter last year, the business posted ($0.41) EPS.

Analysts Set New Price Targets

A number of brokerages have recently commented on RXRX. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Friday, July 17th. Needham & Company LLC reiterated a “buy” rating and set a $8.00 target price on shares of Recursion Pharmaceuticals in a research report on Thursday, May 7th. JPMorgan Chase & Co. decreased their price target on Recursion Pharmaceuticals from $11.00 to $10.00 and set an “overweight” rating on the stock in a research note on Thursday, April 30th. Finally, Morgan Stanley lifted their price target on Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an “equal weight” rating in a report on Thursday, May 14th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Recursion Pharmaceuticals currently has an average rating of “Hold” and a consensus target price of $8.10.

Insider Buying and Selling at Recursion Pharmaceuticals

In related news, CEO Najat Khan sold 23,588 shares of the stock in a transaction on Friday, June 5th. The stock was 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 approximately $7,789,349.68. This trade represents a 1.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 40,000 shares of Recursion Pharmaceuticals stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $3.96, for a total value of $158,400.00. Following the completion of the transaction, the director owned 6,218,287 shares in the company, valued at $24,624,416.52. The trade was a 0.64% 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 a total of 101,937 shares of company stock valued at $381,374 over the last three months. Corporate insiders own 6.65% of the company’s stock.

Hedge Funds Weigh In On Recursion Pharmaceuticals

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in shares of Recursion Pharmaceuticals by 18.6% during the 4th quarter. Vanguard Group Inc. now owns 47,187,759 shares of the company’s stock worth $192,998,000 after purchasing an additional 7,407,606 shares during the period. ARK Investment Management LLC raised its holdings in Recursion Pharmaceuticals by 11.2% in the fourth quarter. ARK Investment Management LLC now owns 37,316,856 shares of the company’s stock valued at $152,626,000 after buying an additional 3,771,357 shares during the period. State Street Corp lifted its position in Recursion Pharmaceuticals by 38.7% during the fourth quarter. State Street Corp now owns 25,333,888 shares of the company’s stock valued at $103,616,000 after buying an additional 7,064,963 shares in the last quarter. Geode Capital Management LLC lifted its position in Recursion Pharmaceuticals by 13.6% during the fourth quarter. Geode Capital Management LLC now owns 10,934,252 shares of the company’s stock valued at $44,731,000 after buying an additional 1,310,695 shares in the last quarter. Finally, Norges Bank purchased a new stake in Recursion Pharmaceuticals during the fourth quarter worth approximately $23,473,000. 89.06% of the stock is currently owned by hedge funds and other institutional investors.

Recursion Pharmaceuticals Trading Down 3.9%

The firm’s 50 day simple moving average is $3.33 and its 200-day simple moving average is $3.48. The company has a market capitalization of $1.69 billion, a PE ratio of -2.65 and a beta of 1.03. The company has a quick ratio of 5.47, a current ratio of 5.47 and a debt-to-equity ratio of 0.01.

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.