Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Down After Earnings Miss

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.67, but opened at $6.71. Recursion Pharmaceuticals shares last traded at $7.25, with a volume of 11,698,781 shares changing hands.

The company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of ($0.36) by ($0.17). The company had revenue of $4.60 million for the quarter, compared to analyst estimates 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 in the prior year, the business earned ($0.42) earnings per share.

Wall Street Analyst Weigh In

RXRX has been the subject of several research reports. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 target price on shares of Recursion Pharmaceuticals in a research report on Thursday, February 6th. KeyCorp dropped their target price on shares of Recursion Pharmaceuticals from $12.00 to $10.00 and set an “overweight” rating on the stock in a report on Wednesday, January 8th.

Institutional Trading of Recursion Pharmaceuticals

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in Recursion Pharmaceuticals by 40.1% in the fourth quarter. Vanguard Group Inc. now owns 34,009,994 shares of the company’s stock worth $229,908,000 after buying an additional 9,737,196 shares during the period. ARK Investment Management LLC grew its position in shares of Recursion Pharmaceuticals by 16.4% during the third quarter. ARK Investment Management LLC now owns 32,769,186 shares of the company’s stock worth $215,949,000 after acquiring an additional 4,626,268 shares during the last quarter. Softbank Group CORP. acquired a new stake in shares of Recursion Pharmaceuticals in the 4th quarter worth about $99,152,000. State Street Corp lifted its position in Recursion Pharmaceuticals by 47.1% in the 3rd quarter. State Street Corp now owns 12,870,272 shares of the company’s stock valued at $84,815,000 after purchasing an additional 4,120,685 shares during the last quarter. Finally, Novo Holdings A S acquired a new position in Recursion Pharmaceuticals during the 4th quarter valued at about $68,375,000. 89.06% of the stock is currently owned by institutional investors and hedge funds.

Recursion Pharmaceuticals Price Performance

The business’s 50 day simple moving average is $7.69 and its 200-day simple moving average is $7.07. The stock has a market capitalization of $2.86 billion, a price-to-earnings ratio of -4.77 and a beta of 0.86. 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.