Recursion Pharmaceuticals (NASDAQ:RXRX) Stock Lifted to “Sell” by Wall Street Zen

Wall Street Zen upgraded shares of Recursion Pharmaceuticals (NASDAQ:RXRX) from a strong sell rating to a sell rating in a research report sent to investors on Saturday morning,Wall Street Zen reports.

A number of other brokerages also recently commented on RXRX. Morgan Stanley set a $5.90 target price on shares of Recursion Pharmaceuticals in a research note on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Thursday. Two 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’s stock. Based on data from MarketBeat.com, Recursion Pharmaceuticals presently has an average rating of “Hold” and a consensus target price of $8.18.

Recursion Pharmaceuticals Trading Down 16.8%

NASDAQ RXRX opened at $3.46 on Friday. The firm has a market capitalization of $1.85 billion, a price-to-earnings ratio of -3.33 and a beta of 1.04. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.03 and a current ratio of 5.03. Recursion Pharmaceuticals has a one year low of $2.77 and a one year high of $7.18. The company’s 50 day moving average price is $3.63 and its 200 day moving average price is $3.42.

Recursion Pharmaceuticals (NASDAQ:RXRX) last released its quarterly earnings data on Wednesday, August 5th. 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 return on equity of 50.41% and a negative net margin of 945.94%. The business had revenue of $7.67 million for the quarter, compared to analysts’ expectations of $10.97 million. During the same quarter in the prior year, the firm earned ($0.41) earnings per share. On average, sell-side analysts predict that Recursion Pharmaceuticals will post -0.94 EPS for the current year.

Insider Transactions at Recursion Pharmaceuticals

In other news, CEO Najat Khan sold 22,408 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $3.52, for a total transaction of $78,876.16. Following the transaction, the chief executive officer directly owned 2,072,890 shares of the company’s stock, valued at approximately $7,296,572.80. The trade was a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 50,000 shares of the company’s stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $4.84, for a total transaction of $242,000.00. Following the completion of the transaction, the director owned 6,108,287 shares of the company’s stock, valued at $29,564,109.08. This trade represents a 0.81% 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. Over the last three months, insiders have sold 157,408 shares of company stock valued at $643,576. Corporate insiders own 6.65% of the company’s stock.

Hedge Funds Weigh In On Recursion Pharmaceuticals

A number of institutional investors have recently added to or reduced their stakes in the company. Hsbc Holdings PLC boosted 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 purchasing an additional 689,903 shares during the last quarter. Renaissance Technologies LLC acquired a new stake in Recursion Pharmaceuticals during the 1st quarter valued at approximately $7,370,000. Bank of New York Mellon Corp grew its stake in Recursion Pharmaceuticals by 29.3% during 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 purchasing an additional 331,048 shares in the last quarter. Bank of America Corp DE grew its stake 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 valued at $7,665,000 after purchasing an additional 384,486 shares in the last quarter. Finally, First Trust Advisors LP increased 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 purchasing an additional 344,035 shares during the last quarter. Institutional investors and hedge funds own 89.06% of the company’s stock.

Recursion Pharmaceuticals News Summary

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

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.