Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Surge by 23.9% – Is It a Good Investment?

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) saw a significant rise in its share price, increasing by 23.9% during mid-day trading on Monday. The stock fluctuated between a high of $10.76 and a last recorded price of $10.53. During this trading session, an impressive 82,298,499 shares changed hands, marking a 344% increase from the average trading volume of 18,530,172 shares. Prior to this surge, the stock closed at $8.50.

Analyst Ratings Updates

There have been several updates from analysts regarding Recursion Pharmaceuticals. Needham & Company LLC reaffirmed a “buy” rating on the company’s shares with a target price set at $11.00 in a report dated February 6th. Conversely, KeyCorp lowered their price target for Recursion Pharmaceuticals from $12.00 to $10.00 but still maintained an “overweight” rating in a research note released on January 8th.

Recursion Pharmaceuticals Trading Overview

The company currently holds a market capitalization of $4.11 billion, with a price-to-earnings ratio of -6.88. Its beta stands at 0.86, indicating lower volatility compared to the market. The 50-day simple moving average of the stock is $7.27, while the 200-day simple moving average is $6.90. The company demonstrates a debt-to-equity ratio of 0.04, and shows strong liquidity with a current ratio and a quick ratio both at 4.35.

Institutional Trading Activities

Institutional ownership for Recursion Pharmaceuticals has seen notable movements. For instance, Exchange Traded Concepts LLC increased its stake in the company by 24.9% during the third quarter, now holding 25,182 shares valued at approximately $166,000 after acquiring an additional 5,021 shares. Vontobel Holding Ltd. invested in Recursion Pharmaceuticals for the first time during the third quarter, acquiring a position valued at $70,000. Furthermore, Allspring Global Investments Holdings LLC and Foundations Investment Advisors LLC also made new acquisitions, showing growing interest in RXRX. Currently, institutional investors and hedge funds collectively own about 89.06% of the stock.

Company Overview

Recursion Pharmaceuticals operates as a clinical-stage biotechnology firm, focusing on drug discovery by combining advancements in biology, chemistry, automation, data science, and engineering. Their portfolio includes several promising treatments currently in various stages of clinical trials. These consist of REC-994 for cerebral cavernous malformation, REC-2282 for neurofibromatosis type 2, REC-4881 for familial adenomatous polyposis and AXIN1 or APC mutant cancers, and REC-3964 targeting Clostridioides difficile infection.

Investment Considerations

Investors weighing the potential of Recursion Pharmaceuticals should carefully consider analyst ratings and market conditions. Despite the current “Moderate Buy” rating when compared to other opportunities, some top-rated analysts recommend alternative stocks which may deliver better prospects. Caution and thorough research are recommended before making investment decisions.

Recursion, Pharmaceuticals, Stocks