Recursion Pharmaceuticals (NASDAQ:RXRX) Faces Reduced Price Target by Leerink Partners

Recursion Pharmaceuticals (NASDAQ:RXRX) recently saw its price target lowered by Leerink Partners from $7.00 to $6.00, as noted in a research report released on Friday morning. The firm has now assigned a "market perform" rating to the stock.

Recent Analyst Reports

Recursion Pharmaceuticals has been the subject of various evaluations by other analysts as well. Cowen continued to support the stock with a "hold" rating in their report on the same day. Additionally, KeyCorp adjusted their price target for Recursion Pharmaceuticals to $10.00 from a previous $12.00 while maintaining an "overweight" rating. This adjustment was announced in a research note published on January 8. Meanwhile, Needham & Company reaffirmed a "buy" rating on the stock and set a target price at $11.00 in a report from February 6. Currently, three research analysts assigned a hold rating while two analysts designated a buy rating. According to MarketBeat, RXRX holds an average rating of "Hold" with a consensus target price of $8.25.

Recursion Pharmaceuticals Stock Performance

As of Friday, shares of RXRX opened at $7.51. The stock is valued at about $2.93 billion, boasting a negative price-to-earnings ratio of -4.91 and a beta of 0.86. The moving averages over the last fifty days and two hundred days stand at $7.72 and $7.08, respectively. Over the past year, Recursion Pharmaceuticals has experienced a low of $5.60 and a high of $14.12. Financially, the company reported a quick ratio of 4.35 and a current ratio of 4.35, indicating a solid liquidity position and maintaining a low debt-to-equity ratio of 0.04.

Quarterly Earnings Report

Recursion Pharmaceuticals recently released its quarterly earnings results on February 28. The company reported an earnings loss of ($0.53) per share, which was below the consensus estimate of ($0.36) by an amount of ($0.17). During the quarter, Recursion posted revenues of $4.60 million, falling significantly short of analysts' expectations of $19.04 million. Compared to the previous year, this represents a decrease in revenue by 57.8%. In the prior year, the company reported an earnings loss of ($0.42) per share. Analysts currently project that Recursion Pharmaceuticals will record an EPS of -1.57 for the current fiscal year.

Institutional Investor Activity

In recent months, institutional investors have made adjustments to their holdings of Recursion Pharmaceuticals stock. For instance, Charles Schwab Investment Management Inc. has boosted its stake by 17.5% during the third quarter, acquiring an additional 288,926 shares and now owning a total of 1,940,680 shares valued at approximately $12.79 million. Other institutional players have also increased their investments, with State Street Corp significantly raising its holdings by 47.1% during the third quarter, resulting in ownership of 12,870,272 shares valued at around $84.82 million. Overall, about 89.06% of the stock is now held by hedge funds and various institutional investors.

Company Overview

Recursion Pharmaceuticals, Inc. is a clinical-stage biotechnology company specializing in drug discovery. Their innovative approach combines biological, chemical, and data science techniques to enhance drug development processes. Among the company’s promising candidates are REC-994, currently in Phase 2 trials for treating cerebral cavernous malformation; REC-2282, in Phase 2/3 trials for neurofibromatosis type 2; and REC-4881, which is in Phase 1b/2 trials for familial adenomatous polyposis. Other candidates undergoing clinical trials target conditions like Clostridioides difficile infections and specific mutant cancers.

Recursion, Pharmaceuticals, Analysis