Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Down on Disappointing Earnings

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX - Get Free Report) gapped down prior to trading on Friday following a weaker than expected earnings announcement. 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 trading hands.

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

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on RXRX shares. KeyCorp dropped their price objective on shares of Recursion Pharmaceuticals from $12.00 to $10.00 and set an "overweight" rating for the company in a research note on Wednesday, January 8th. Leerink Partners dropped their price target on shares of Recursion Pharmaceuticals from $7.00 to $6.00 and set a "market perform" rating for the company in a research report on Friday. Cowen reiterated a "hold" rating on shares of Recursion Pharmaceuticals in a report on Friday. Finally, Needham & Company LLC restated a "buy" rating and set a $11.00 price objective on shares of Recursion Pharmaceuticals in a report on Thursday, February 6th. 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, the stock presently has an average rating of "Hold" and a consensus target price of $8.25.

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Institutional Inflows and Outflows

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

Recursion Pharmaceuticals Trading Down 12.3 %

The firm has a market cap of $2.57 billion, a price-to-earnings ratio of -4.31 and a beta of 0.86. The company has a quick ratio of 4.35, a current ratio of 4.35 and a debt-to-equity ratio of 0.04. The business has a 50 day moving average price of $7.72 and a 200-day moving average price of $7.09.

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.