Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Up 8.4% – Here’s Why

Shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) traded up 8.4% during mid-day trading on Thursday. The stock traded as high as $4.02 and last traded at $4.0550. Approximately 19,711,231 shares traded hands during trading, an increase of 3% from the average daily volume of 19,182,031 shares. The stock had previously closed at $3.74.

Trending Headlines about Recursion Pharmaceuticals

Here are the key news stories impacting Recursion Pharmaceuticals this week:

• Positive Sentiment: Sanofi collaboration advanced: Sanofi exercised an option on a potential first-in-class immunology development candidate from the companies’ collaboration. The milestone validates Recursion’s AI-enabled drug-discovery platform and could support more than $400 million in potential milestone revenue across the partnership. Recursion Announces $200 Million Offering, Clinical Data Updates, and Partnership Milestone
• Positive Sentiment: Pipeline data provided additional support: Recursion reported updated Phase 1b/2 results for REC-4881 in familial adenomatous polyposis and early Phase 1 data for REC-1245. The updates helped reinforce expectations that multiple internally developed programs could advance, although the trials remain early stage. Recursion Reports REC-4881 and REC-1245 Clinical Data
• Positive Sentiment: Strong institutional demand improved liquidity: The follow-on financing was described as oversubscribed and included healthcare-focused investors such as ARK Invest, Janus Henderson Investors, Invus and other funds. The proceeds give Recursion additional resources to fund clinical development and operations. Recursion Announces Pricing of $200 Million Offering
• Neutral Sentiment: Analysts remain cautious, with coverage maintaining a “Hold” view while awaiting clearer evidence of REC-4881’s clinical and commercial potential and further collaboration candidates. Recursion Hold Rating and REC-4881 Update
• Negative Sentiment: Share dilution is weighing on the stock: Recursion priced 61.54 million new Class A shares at $3.25 each, raising $200 million. The discounted issuance expands the share count and can pressure existing shareholders, offsetting some of the optimism surrounding the clinical and Sanofi announcements. Recursion $200 Million Stock Offering Pricing

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on RXRX shares. Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Thursday. Morgan Stanley set a $5.90 price objective on shares of Recursion Pharmaceuticals in a report on Friday. Finally, Wall Street Zen upgraded shares of Recursion Pharmaceuticals from a “strong sell” rating to a “sell” rating in a research note on Saturday. Two 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. Based on data from MarketBeat, Recursion Pharmaceuticals has an average rating of “Hold” and an average target price of $8.18.

Recursion Pharmaceuticals Stock Down 16.8%

The firm has a fifty day moving average price of $3.63 and a 200 day moving average price of $3.42. The company has a quick ratio of 5.03, a current ratio of 5.03 and a debt-to-equity ratio of 0.01. The company has a market cap of $1.85 billion, a P/E ratio of -3.33 and a beta of 1.04.

Recursion Pharmaceuticals (NASDAQ:RXRX) last announced its earnings results on Wednesday, August 5th. The company reported ($0.25) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.01). Recursion Pharmaceuticals had a negative net margin of 945.94% and a negative return on equity of 50.41%. The business had revenue of $7.67 million during the quarter, compared to analyst estimates of $10.97 million. During the same quarter last year, the business posted ($0.41) earnings per share. Equities research analysts forecast that Recursion Pharmaceuticals, Inc. will post -0.94 earnings per share for the current year.

Insiders Place Their Bets

In other Recursion Pharmaceuticals news, CEO Najat Khan sold 22,408 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $3.52, for a total value of $78,876.16. Following the completion of the sale, the chief executive officer owned 2,072,890 shares in the company, valued at approximately $7,296,572.80. This trade represents a 1.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Hershberg sold 25,000 shares of the business’s stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $5.00, for a total transaction of $125,000.00. Following the completion of the transaction, the director directly owned 162,156 shares of the company’s stock, valued at approximately $810,780. This represents a 13.36% 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. Insiders have sold a total of 157,408 shares of company stock valued at $643,576 in the last 90 days. 6.65% of the stock is currently owned by insiders.

Institutional Trading of Recursion Pharmaceuticals

Several hedge funds have recently modified their holdings of the stock. First Trust Advisors LP raised its position in Recursion Pharmaceuticals by 15.2% in the 1st quarter. First Trust Advisors LP now owns 2,610,726 shares of the company’s stock worth $8,015,000 after purchasing an additional 344,035 shares during the last quarter. Bank of America Corp DE lifted its holdings in Recursion Pharmaceuticals by 18.2% during the 1st quarter. Bank of America Corp DE now owns 2,496,831 shares of the company’s stock worth $7,665,000 after buying an additional 384,486 shares in the last quarter. Renaissance Technologies LLC bought a new position in Recursion Pharmaceuticals in the 1st quarter valued at $7,370,000. Bank of New York Mellon Corp boosted its position in Recursion Pharmaceuticals by 29.3% in the 1st quarter. Bank of New York Mellon Corp now owns 1,462,631 shares of the company’s stock valued at $4,490,000 after buying an additional 331,048 shares during the last quarter. Finally, Swiss National Bank increased its stake in shares of Recursion Pharmaceuticals by 21.8% in the 1st quarter. Swiss National Bank now owns 877,000 shares of the company’s stock valued at $2,692,000 after buying an additional 156,700 shares during the period. 89.06% of the stock is owned by institutional investors.

About Recursion Pharmaceuticals

Recursion Pharmaceuticals, Inc is a clinical-stage biotechnology company that uses biology, chemistry, automation and machine learning to discover and develop new medicines. The company’s technology platform is designed to generate and analyze large volumes of biological and chemical data, helping researchers identify potential drug candidates and better understand disease mechanisms.

Recursion has focused its research and development activities on areas including oncology, rare diseases and neuroscience.