Wall Street Zen Upgrades Recursion Pharmaceuticals (NASDAQ:RXRX) to Sell

Recursion Pharmaceuticals (NASDAQ:RXRX) was upgraded by equities researchers at Wall Street Zen from a “strong sell” rating to a “sell” rating in a report released on Saturday, Wall Street Zen reports.

Other equities analysts have also issued research reports about the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a report on Thursday. Morgan Stanley set a $5.90 price target on Recursion Pharmaceuticals in a research report on Friday. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $8.18.

Recursion Pharmaceuticals Trading Down 0.3%

RXRX opened at $3.46 on Friday. The firm has a market cap of $1.85 billion, a price-to-earnings ratio of -3.33 and a beta of 1.04. Recursion Pharmaceuticals has a 52 week low of $2.77 and a 52 week high of $7.18. The business’s 50 day moving average is $3.63 and its two-hundred day moving average is $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.

Recursion Pharmaceuticals (NASDAQ:RXRX) last issued its quarterly earnings data 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 firm had revenue of $7.67 million during the quarter, compared to analysts’ expectations of $10.97 million. During the same quarter in the prior year, the firm posted ($0.41) EPS. On average, research analysts predict that Recursion Pharmaceuticals will post -0.94 EPS for the current year.

Insider Buying and Selling at Recursion Pharmaceuticals

In other news, 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 transaction, the director directly owned 6,108,287 shares of the company’s stock, valued at $29,564,109.08. This represents a 0.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available 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 company’s stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $5.00, for a total transaction of $125,000.00. Following the transaction, the director directly owned 162,156 shares in the company, valued at approximately $810,780. This trade represents a 13.36% 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 quarter, insiders sold 157,408 shares of company stock valued at $643,576. 6.65% of the stock is owned by company insiders.

Institutional Trading of Recursion Pharmaceuticals

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Hsbc Holdings PLC grew its position in Recursion Pharmaceuticals by 537.3% during the fourth quarter. Hsbc Holdings PLC now owns 818,316 shares of the company’s stock worth $3,367,000 after buying an additional 689,903 shares during the period. Renaissance Technologies LLC purchased a new position in Recursion Pharmaceuticals in the first quarter valued at about $7,370,000. Bank of New York Mellon Corp increased its holdings in Recursion Pharmaceuticals by 29.3% in the first 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 in the last quarter. Bank of America Corp DE lifted its position in shares of 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 acquiring an additional 384,486 shares during the period. Finally, First Trust Advisors LP lifted its position in shares of Recursion Pharmaceuticals by 15.2% during the 1st quarter. First Trust Advisors LP now owns 2,610,726 shares of the company’s stock valued at $8,015,000 after acquiring an additional 344,035 shares during the period. 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.