Recursion Pharmaceuticals (NASDAQ:RXRX) Trading Down 3.8% on Disappointing Earnings

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s stock price fell 3.8% on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $6.61 and last traded at $7.38. 19,725,110 shares were traded during trading, a decline of 23% from the average session volume of 25,633,920 shares. The stock had previously closed at $7.67.

The company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.36) by ($0.17). The firm had revenue of $4.60 million during the quarter, compared to the consensus estimate of $19.04 million. Recursion Pharmaceuticals had a negative return on equity of 76.56% and a negative net margin of 579.52%. Recursion Pharmaceuticals’s revenue was down 57.8% on a year-over-year basis. During the same period last year, the business earned ($0.42) EPS.

Analyst Ratings Changes

A number of brokerages have issued reports on RXRX. Leerink Partners cut their price target on shares of Recursion Pharmaceuticals from $7.00 to $6.00 and set a “market perform” rating on the stock in a report on Friday. Cowen reaffirmed a “hold” rating on shares of Recursion Pharmaceuticals in a research report on Friday. Needham & Company LLC reaffirmed a “buy” rating and issued a $11.00 target price on shares of Recursion Pharmaceuticals in a research report on Thursday, February 6th. Finally, KeyCorp dropped their target price on shares of Recursion Pharmaceuticals from $12.00 to $10.00 and set an “overweight” rating for the company in a research report on Wednesday, January 8th. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Recursion Pharmaceuticals currently has an average rating of “Hold” and an average target price of $8.25.

Institutional Investors Weigh In On Recursion Pharmaceuticals

Institutional investors and hedge funds have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC purchased a new stake in shares of Recursion Pharmaceuticals in the 3rd quarter worth about $25,000. Decker Retirement Planning Inc. purchased a new position in Recursion Pharmaceuticals during the 4th quarter valued at about $26,000. Private Trust Co. NA purchased a new position in Recursion Pharmaceuticals during the 4th quarter valued at about $27,000. GAMMA Investing LLC lifted its position in Recursion Pharmaceuticals by 1,979.2% during the 4th quarter. GAMMA Investing LLC now owns 5,198 shares of the company’s stock valued at $35,000 after acquiring an additional 4,948 shares during the period. Finally, Farther Finance Advisors LLC lifted its position in Recursion Pharmaceuticals by 176.9% during the 3rd quarter. Farther Finance Advisors LLC now owns 6,404 shares of the company’s stock valued at $42,000 after acquiring an additional 4,091 shares during the period. 89.06% of the stock is owned by hedge funds and other institutional investors.

Recursion Pharmaceuticals Stock Performance

The company has a market capitalization of $2.93 billion, a PE ratio of -4.91 and a beta of 0.86. The business’s 50-day moving average is $7.72 and its 200-day moving average is $7.08. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.35 and a current ratio of 4.35.

Recursion Pharmaceuticals Company Profile

Recursion Pharmaceuticals, Inc operates as a clinical-stage biotechnology company, engages in the decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery. The company develops REC-994, which is in Phase 2 clinical trial to treat cerebral cavernous malformation; REC-2282, which is in Phase 2/3 clinical trial for the treatment of neurofibromatosis type 2; REC-4881, which is in Phase 1b/2 clinical trial to treat familial adenomatous polyposis; REC-3964, which is in Phase 1 clinical trial to treat Clostridioides difficile infection; and REC-4881, which is in Phase 2 clinical trial to treat AXIN1 or APC mutant cancers.