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

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. 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 the consensus estimate of ($0.24) by ($0.01). Recursion Pharmaceuticals had a negative net margin of 842.95% and a negative return on equity of 54.33%. The company had revenue of $7.67 million during the quarter, compared to analyst estimates of $10.97 million. During the same quarter in the prior year, the company posted ($0.41) earnings per share.

Wall Street Analysts Forecast Growth

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

Insider Transactions at Recursion Pharmaceuticals

In other news, CEO Najat Khan sold 23,588 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $3.58, for a total transaction of $84,445.04. Following the completion of the sale, the chief executive officer directly owned 2,175,796 shares in the company, valued at $7,789,349.68. This trade represents a 1.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 dated Tuesday, July 7th. The stock was sold at an average price of $3.96, for a total value of $158,400.00. Following the sale, the director directly owned 6,218,287 shares in the company, valued at approximately $24,624,416.52. The trade was a 0.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 101,937 shares of company stock valued at $381,374. 6.65% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Recursion Pharmaceuticals

A number of institutional investors have recently made changes to their positions in RXRX. Vanguard Group Inc. grew its position in shares of Recursion Pharmaceuticals by 18.6% during the fourth quarter. Vanguard Group Inc. now owns 47,187,759 shares of the company’s stock worth $192,998,000 after buying an additional 7,407,606 shares in the last quarter. Hsbc Holdings PLC raised its holdings in Recursion Pharmaceuticals by 537.3% in the fourth quarter. Hsbc Holdings PLC now owns 818,316 shares of the company’s stock valued at $3,367,000 after acquiring an additional 689,903 shares in the last quarter. Lingotto Investment Management LLP boosted its stake in Recursion Pharmaceuticals by 34.2% during the 4th quarter. Lingotto Investment Management LLP now owns 4,931,057 shares of the company’s stock valued at $20,168,000 after acquiring an additional 1,255,980 shares during the last quarter. Norges Bank bought a new position in Recursion Pharmaceuticals during the 4th quarter valued at $23,473,000. Finally, First Trust Advisors LP grew its holdings in Recursion Pharmaceuticals by 15.2% during the 1st quarter. First Trust Advisors LP now owns 2,610,726 shares of the company’s stock worth $8,015,000 after acquiring an additional 344,035 shares in the last quarter. 89.06% of the stock is owned by institutional investors and hedge funds.

Recursion Pharmaceuticals Price Performance

The company’s 50-day moving average price is $3.33 and its two-hundred day moving average price is $3.48. The company has a market cap of $1.69 billion, a P/E ratio of -2.65 and a beta of 1.03. The company has a current ratio of 5.47, a quick ratio of 5.47 and a debt-to-equity ratio of 0.01.

Recursion Pharmaceuticals Company Profile

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.