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

Shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $8.64, but opened at $9.05. Recursion Pharmaceuticals shares last traded at $8.67, with a volume of 2,127,409 shares changing hands.

The company reported ($0.39) earnings per share for the quarter, beating the consensus estimate of ($0.43) by $0.04. Recursion Pharmaceuticals had a negative net margin of 735.99% and a negative return on equity of 72.88%. The business had revenue of $13.80 million for the quarter, compared to the consensus estimate of $11.10 million. During the same quarter in the prior year, the firm posted ($0.34) earnings per share. The business’s revenue for the quarter was up 14.0% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several research firms recently commented on RXRX. Needham & Company LLC reaffirmed a “buy” rating and issued a $17.00 price target on shares of Recursion Pharmaceuticals in a research note on Friday. TD Cowen initiated coverage on shares of Recursion Pharmaceuticals in a report on Friday, January 26th. They set a “market perform” rating on the stock. Finally, KeyCorp increased their target price on shares of Recursion Pharmaceuticals from $15.00 to $16.00 and gave the stock an “overweight” rating in a report on Monday, March 4th. Three research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, Recursion Pharmaceuticals presently has a consensus rating of “Hold” and a consensus price target of $12.75.

Insider Activity

In related news, COO Tina Marriott sold 8,000 shares of Recursion Pharmaceuticals stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $14.89, for a total value of $119,120.00. Following the completion of the sale, the chief operating officer now directly owns 639,982 shares in the company, valued at approximately $9,529,331.98. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, COO Tina Marriott sold 8,000 shares of Recursion Pharmaceuticals stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $14.89, for a total transaction of $119,120.00. Following the completion of the transaction, the chief operating officer now directly owns 639,982 shares of the company’s stock, valued at approximately $9,529,331.98. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Christopher Gibson sold 50,000 shares of Recursion Pharmaceuticals stock in a transaction on Wednesday, May 1st. The shares were sold at an average price of $7.73, for a total transaction of $386,500.00. Following the completion of the sale, the chief executive officer now directly owns 863,524 shares in the company, valued at approximately $6,675,040.52. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 352,946 shares of company stock worth $3,485,453. Corporate insiders own 15.75% of the company’s stock.

Hedge Funds Weigh In On Recursion Pharmaceuticals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RXRX. Kingsview Wealth Management LLC purchased a new position in Recursion Pharmaceuticals in the first quarter worth $240,000. Interchange Capital Partners LLC grew its holdings in shares of Recursion Pharmaceuticals by 41.4% during the 1st quarter. Interchange Capital Partners LLC now owns 32,231 shares of the company’s stock worth $332,000 after purchasing an additional 9,438 shares during the period. ProShare Advisors LLC grew its holdings in shares of Recursion Pharmaceuticals by 14.1% during the 1st quarter. ProShare Advisors LLC now owns 40,949 shares of the company’s stock worth $408,000 after purchasing an additional 5,051 shares during the period. Russell Investments Group Ltd. grew its holdings in shares of Recursion Pharmaceuticals by 45.2% during the 1st quarter. Russell Investments Group Ltd. now owns 158,305 shares of the company’s stock worth $1,578,000 after purchasing an additional 49,292 shares during the period. Finally, Swiss National Bank lifted its position in Recursion Pharmaceuticals by 9.6% during the 1st quarter. Swiss National Bank now owns 308,500 shares of the company’s stock worth $3,076,000 after acquiring an additional 27,100 shares in the last quarter. 89.06% of the stock is owned by institutional investors and hedge funds.

Recursion Pharmaceuticals Trading Down 3.0 %

The firm has a 50-day moving average of $9.45 and a 200 day moving average of $9.25. The stock has a market capitalization of $1.97 billion, a price-to-earnings ratio of -5.57 and a beta of 0.85.

About Recursion Pharmaceuticals

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.