Recursion Pharmaceuticals Reports Quarterly Earnings, Falls Short of Estimates

Recursion Pharmaceuticals (NASDAQ:RXRX) disclosed its quarterly earnings results on Friday. The company reported an earnings per share (EPS) of ($0.53), which was below analysts' expectations of ($0.36) by a margin of ($0.17). Zacks reports that the company faced significant challenges, reflected by a negative return on equity of 76.56% and a troubling net margin of 579.52%. In terms of revenue, Recursion Pharmaceuticals generated $4.60 million during the quarter, a sharp decline from the anticipated $19.04 million. Comparing this to the previous year, the company's earnings per share during the same quarter were ($0.42), indicating a deterioration in performance with year-over-year revenue down by 57.8%.

Recursion Pharmaceuticals Stock Activity

On the trading floor, Recursion Pharmaceuticals' stock price decreased by 4.4%, falling $0.34 to reach $7.34. This trading session recorded a volume of 29,348,188 shares, notably surpassing its average volume of 25,924,594 shares. The stock has seen a 12-month low of $5.60 and a high of $14.12. Presently, the company holds a quick ratio of 4.35 and has a current ratio of 4.35, along with a low debt-to-equity ratio of 0.04. Recursion Pharmaceuticals has a market cap of $2.87 billion, a PE ratio of -4.78, and a beta of 0.86.

Investment Insights: Price Targets from Analysts

Several brokerages have weighed in with updates on Recursion Pharmaceuticals. KeyCorp reduced its price target for the shares from $12.00 to $10.00 and maintained an "overweight" rating on the stock. This adjustment was noted in a report released on January 8th. Additionally, Needham & Company LLC reaffirmed a "buy" rating on the stocks, establishing a new price target of $11.00 in their report on February 6th.

About Recursion Pharmaceuticals

Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology firm focused on transforming biological research through advanced technology, including biology, chemistry, automation, data science, and engineering to innovate drug discovery. The company is currently involved in several clinical trials, including REC-994 in Phase 2 for treating cerebral cavernous malformation, REC-2282 in Phase 2/3 for neurofibromatosis type 2, and REC-3964 in Phase 1 for Clostridioides difficile infections, among others.

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