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

The stock of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) experienced a notable increase of 4.6% on Friday, reaching a peak of $6.20 before settling at $6.22. During the mid-day trading session, roughly 4,144,273 shares changed hands, showing a significant drop of 60% compared to the average daily trading volume of 10,307,810 shares. Prior to this rise, the stock closed at $5.94.

Analysts Set New Price Targets

Several analysts have recently provided updates on Recursion Pharmaceuticals' shares. Cowen maintained a "hold" rating in their report released on February 28th. Meanwhile, KeyCorp lowered its price target for the company from $12.00 to $10.00 while assigning an "overweight" rating in its report dated January 8th. Needham & Company reiterated a "buy" rating and set a new price target of $11.00 on February 6th. Conversely, Leerink Partners reduced its price target from $7.00 to $6.00 while providing a "market perform" rating in a report released on February 28th. Currently, three analysts rate the stock as a hold, while two recommend a buy. According to MarketBeat.com, Recursion Pharmaceuticals holds a consensus rating of "Hold" with an average target price of $8.25.

Recursion Pharmaceuticals Price Performance

Recursion Pharmaceuticals has a market capitalization of $2.55 billion and a price-to-earnings (P/E) ratio of -4.15, indicating it operates at a loss. The stock has a beta of 0.85, showing lower volatility compared to the market. Its 50-day and 200-day simple moving averages stand at $7.57 and $7.03, respectively. Financially, the company showcases a current ratio of 4.35 and a quick ratio of 4.35, implying good short-term liquidity, while its debt-to-equity ratio is low at 0.04.

On February 28th, the company disclosed its latest earnings results, reporting an earnings per share (EPS) of ($0.53) for the quarter, which fell short of analysts' average estimate of ($0.36) by $0.17. The revenue for the quarter amounted to $4.60 million, significantly below the expected $19.04 million. Recursion Pharmaceuticals exhibited a staggering negative net margin of 579.52% and a negative return on equity of 76.56%. Revenue also showed a 57.8% decline when compared to the same quarter the previous year, during which the company posted an EPS of ($0.42). Analysts predict that Recursion Pharmaceuticals will report an average EPS of -$1.57 for the current year.

Institutional Investors Weigh In On Recursion Pharmaceuticals

Recent activity among institutional investors reveals interesting shifts. For instance, Vanguard Group Inc. increased its stake in Recursion Pharmaceuticals by 40.1% in the last quarter, now holding 34,009,994 shares worth approximately $229,908,000 after acquiring an additional 9,737,196 shares. Additionally, Softbank Group CORP. took a new stake valued at around $99,152,000 during the fourth quarter. Other significant moves include State Street Corp.'s 47.1% increase in holdings, now owning 12,870,272 shares valued at $84,815,000, and Novo Holdings A S also securing a new position worth about $68,375,000. In total, institutional investors and hedge funds control approximately 89.06% of Recursion Pharmaceuticals' shares.

Recursion Pharmaceuticals Company Profile

Recursion Pharmaceuticals, Inc. functions as a biotechnology company in the clinical stage, utilizing advanced technology across various fields such as biology, chemistry, automation, data science, and engineering to enhance drug discovery processes. The company is developing a range of products including REC-994, currently in Phase 2 trials for treating cerebral cavernous malformation; REC-2282, in Phase 2/3 trials for neurofibromatosis type 2; REC-4881, in Phase 1b/2 trials for familial adenomatous polyposis; REC-3964, in Phase 1 trials for Clostridioides difficile infection; and REC-4881 for treating AXIN1 or APC mutant cancers currently in Phase 2 trials.

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Should You Invest $1,000 in Recursion Pharmaceuticals Right Now?

Before making any investment decisions regarding Recursion Pharmaceuticals, it is advisable to consider the following insights.

MarketBeat closely tracks the recommendations of top analysts regarding stocks. Currently, Recursion Pharmaceuticals does not appear on the list of stocks recommended by leading market analysts, indicating that there may be potentially more favorable investment opportunities elsewhere.

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Recursion, Pharmaceuticals, Stock