Recursion Pharmaceuticals (NASDAQ:RXRX) Trading Up 4.6% - What's Next?

The shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) increased by 4.6% on Friday, reaching a trading high of $6.20 before closing at $6.22. During mid-day trading, approximately 4,144,273 shares changed hands, which reflects a 60% decline from the average daily volume of 10,307,810 shares. The stock had previously ended at $5.94.

Analyst Price Targets

Recently, several investment analysts have provided updates on RXRX shares. Cowen maintained a "hold" rating for Recursion Pharmaceuticals in a report dated February 28th. KeyCorp reduced their target price from $12.00 to $10.00 and gave the stock an "overweight" rating in a report published on January 8th. Needham & Company LLC reiterated a "buy" rating, setting a price target of $11.00 for the stock on February 6th. Conversely, Leerink Partners lowered their price target from $7.00 to $6.00, rating the stock as "market perform" in a report on February 28th. Currently, three analysts have assigned a hold rating while two have given it a buy rating. Data from MarketBeat.com shows a consensus rating of "Hold" with an average target price of $8.25.

Price Performance Overview

Recursion Pharmaceuticals has a market capitalization of $2.55 billion, a P/E ratio of -4.15, and a beta of 0.85. Its 50-day simple moving average is $7.57, while the 200-day simple moving average is $7.03. The company's current ratio and quick ratio are both 4.35, indicating strong liquidity, and its debt-to-equity ratio stands at a low 0.04.

The last earnings announcement from Recursion Pharmaceuticals occurred on February 28th, where the company reported an EPS of ($0.53), which fell short of the consensus estimate of ($0.36) by $0.17. The total revenue for the quarter was reported at $4.60 million, significantly below the expected $19.04 million. The company has recorded a negative net margin of 579.52% and a negative return on equity of 76.56%. Year-over-year, the revenue has declined by 57.8%. In the same quarter last year, the EPS was ($0.42). Analysts predict that Recursion Pharmaceuticals, Inc. will post earnings of -$1.57 per share for the current year.

Institutional Investor Activity

Recently, several hedge funds have adjusted their positions in Recursion Pharmaceuticals. Vanguard Group Inc. increased its stake by 40.1% in the fourth quarter, now owning 34,009,994 shares worth $229,908,000 after acquiring an additional 9,737,196 shares. Softbank Group CORP. acquired a new stake valued at around $99,152,000 in the same quarter. State Street Corp. raised its holdings by 47.1% in the third quarter, owning 12,870,272 shares worth $84,815,000 after obtaining an additional 4,120,685 shares. Novo Holdings A S also bought a new position in the fourth quarter valued at approximately $68,375,000. Finally, FMR LLC increased its stake by 2.1% during the third quarter, reaching 8,363,530 shares valued at $55,116,000 after purchasing an additional 170,810 shares. Institutional investors and hedge funds collectively hold 89.06% of the stock in Recursion Pharmaceuticals.

Company Profile

Recursion Pharmaceuticals, Inc. is a biotechnology company in the clinical stage, focusing on integrating technological innovations across various fields like biology, chemistry, automation, data science, and engineering to enhance drug discovery. The company is currently developing several products, including REC-994, which is undergoing Phase 2 clinical trials for cerebral cavernous malformation, REC-2282 for neurofibromatosis type 2 in Phase 2/3 trials, REC-4881 targeting familial adenomatous polyposis in Phase 1b/2 trials, REC-3964 for Clostridioides difficile infection in Phase 1 clinical trials, and REC-4881 for AXIN1 or APC mutant cancers in Phase 2 trials.

Conclusion

Investors considering purchasing shares in Recursion Pharmaceuticals should weigh the current analyst recommendations and stock performance. With mixed ratings and a significant stake held by institutional investors, potential buyers may want to do further research before making investment decisions.

Recursion, Stocks, Investing