Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Up Following Better-Than-Expected Earnings

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 changing hands.

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

Analyst Ratings Changes

Several analysts recently weighed in on RXRX shares. UBS Group set a $11.00 price target on Recursion Pharmaceuticals in a research note on Wednesday, December 17th. JPMorgan Chase & Co. raised Recursion Pharmaceuticals from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $10.00 to $11.00 in a research note on Wednesday, December 17th. Weiss Ratings reissued a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Thursday, January 22nd. Finally, Morgan Stanley set a $11.00 price objective on shares of Recursion Pharmaceuticals in a research note on Wednesday, December 17th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Recursion Pharmaceuticals presently has a consensus rating of “Hold” and a consensus price target of $9.40.

Insider Transactions at Recursion Pharmaceuticals

In other news, Director Blake Borgeson sold 220,000 shares of the firm’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $4.20, for a total value of $924,000.00. Following the transaction, the director owned 6,429,863 shares of the company’s stock, valued at $27,005,424.60. This trade represents a 3.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Ben R. Taylor sold 21,383 shares of the business’s stock in a transaction that occurred on Monday, December 29th. The shares were sold at an average price of $4.18, for a total value of $89,380.94. Following the transaction, the chief financial officer owned 761,550 shares of the company’s stock, valued at approximately $3,183,279. This trade represents a 2.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 819,212 shares of company stock worth $3,523,950 in the last 90 days. 8.43% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Recursion Pharmaceuticals

Large investors have recently added to or reduced their stakes in the company. Invesco Ltd. boosted its position in shares of Recursion Pharmaceuticals by 25.8% in the fourth quarter. Invesco Ltd. now owns 526,144 shares of the company’s stock worth $2,152,000 after purchasing an additional 107,979 shares during the period. Corient Private Wealth LLC purchased a new position in shares of Recursion Pharmaceuticals during the 4th quarter valued at $70,000. Mercer Global Advisors Inc. ADV boosted its holdings in Recursion Pharmaceuticals by 55.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 25,020 shares of the company’s stock worth $100,000 after buying an additional 8,935 shares during the period. NewEdge Advisors LLC increased its stake in Recursion Pharmaceuticals by 149.5% in the 4th quarter. NewEdge Advisors LLC now owns 33,757 shares of the company’s stock worth $138,000 after buying an additional 20,226 shares in the last quarter. Finally, XTX Topco Ltd raised its holdings in Recursion Pharmaceuticals by 104.0% during the fourth quarter. XTX Topco Ltd now owns 47,908 shares of the company’s stock valued at $196,000 after acquiring an additional 24,421 shares during the period. Hedge funds and other institutional investors own 89.06% of the company’s stock.

Recursion Pharmaceuticals Stock Up 11.2%

The firm has a market capitalization of $2.04 billion, a PE ratio of -2.16 and a beta of 0.95. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.60 and a quick ratio of 4.60. The company has a 50-day moving average price of $4.22 and a 200 day moving average price of $4.72.

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.