Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Up Following Strong Earnings

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $3.53, but opened at $3.91. Recursion Pharmaceuticals shares last traded at $3.9040, with a volume of 21,104,323 shares traded.

The company reported ($0.21) earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.07. Recursion Pharmaceuticals had a negative return on equity of 72.74% and a negative net margin of 1,637.81%.The business had revenue of $35.54 million during the quarter, compared to the consensus estimate of $24.56 million. During the same period in the prior year, the company posted ($0.53) EPS. The firm’s revenue for the quarter was up 671.7% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on RXRX. Morgan Stanley set a $11.00 price target on shares of Recursion Pharmaceuticals in a report on Wednesday, December 17th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Thursday, January 22nd. UBS Group set a $11.00 price target on Recursion Pharmaceuticals in a report on Wednesday, December 17th. Finally, JPMorgan Chase & Co. raised Recursion Pharmaceuticals from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $10.00 to $11.00 in a report on Wednesday, December 17th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $9.40.

Insider Buying and Selling

In related news, Director Blake Borgeson sold 220,000 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $4.20, for a total transaction of $924,000.00. Following the transaction, the director directly owned 6,429,863 shares in the company, valued at approximately $27,005,424.60. This represents a 3.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Najat Khan sold 124,403 shares of the firm’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $4.41, for a total transaction of $548,617.23. Following the completion of the sale, the insider directly owned 611,135 shares of the company’s stock, valued at approximately $2,695,105.35. The trade was a 16.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 819,212 shares of company stock valued at $3,523,950. Company insiders own 8.43% of the company’s stock.

Hedge Funds Weigh In On Recursion Pharmaceuticals

Hedge funds have recently bought and sold shares of the business. TD Waterhouse Canada Inc. boosted its stake in shares of Recursion Pharmaceuticals by 64.1% during the second quarter. TD Waterhouse Canada Inc. now owns 5,631 shares of the company’s stock valued at $29,000 after purchasing an additional 2,200 shares during the period. International Assets Investment Management LLC bought a new stake in Recursion Pharmaceuticals during the 4th quarter valued at about $31,000. Allworth Financial LP lifted its holdings in Recursion Pharmaceuticals by 85.6% during the 3rd quarter. Allworth Financial LP now owns 9,548 shares of the company’s stock valued at $47,000 after buying an additional 4,403 shares in the last quarter. Sequoia Financial Advisors LLC purchased a new stake in Recursion Pharmaceuticals in the 4th quarter valued at about $41,000. Finally, IFP Advisors Inc grew its stake in Recursion Pharmaceuticals by 81.5% in the 3rd quarter. IFP Advisors Inc now owns 10,355 shares of the company’s stock worth $51,000 after acquiring an additional 4,650 shares in the last quarter. Institutional investors own 89.06% of the company’s stock.

Recursion Pharmaceuticals Price Performance

The firm has a market capitalization of $2.04 billion, a P/E ratio of -2.16 and a beta of 0.95. The stock’s 50 day simple moving average is $4.22 and its 200 day simple moving average is $4.72. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.60 and a current ratio of 4.60.

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.