Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Up 23.9% - Is It Still a Buy?

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has seen a significant uptick in its share price, rising by 23.9% during mid-day trading on Monday. The stock reached a peak of $10.76 before settling at $10.53, with a total of 82,298,499 shares traded—an impressive 344% increase compared to the average session volume of 18,530,172 shares. This surge follows a previous closing price of $8.50.

Analyst Ratings Updates

Recent assessments from financial analysts indicate varying perspectives on Recursion Pharmaceuticals. Needham & Company LLC reaffirmed a "buy" rating with a target price of $11.00 in their report dated February 6th. Meanwhile, KeyCorp adjusted their price target downward from $12.00 to $10.00, maintaining an "overweight" rating in their research note from January 8th.

Market Performance of Recursion Pharmaceuticals

Recursion Pharmaceuticals has a market capitalization of approximately $4.11 billion. The company's price-to-earnings ratio stands at -6.88, and it has a beta of 0.86, reflecting its volatility compared to the overall market. The 50-day simple moving average for the stock is $7.27, while the 200-day simple moving average is $6.90. Additionally, the company has a debt-to-equity ratio of 0.04 and both a current and quick ratio of 4.35.

Institutional Trading Activity

Institutional investors have been actively adjusting their positions in Recursion Pharmaceuticals. Exchange Traded Concepts LLC increased its stake by 24.9% during the third quarter, now holding 25,182 shares valued at $166,000 after acquiring an additional 5,021 shares. Similarly, Vontobel Holding Ltd. entered the market with a new position worth $70,000 during the same period. Other firms like Allspring Global Investments Holdings LLC and Foundations Investment Advisors LLC also made new investments, with the latter raising its holdings by 25.0% to $1.27 million. Currently, institutional investors and hedge funds collectively own 89.06% of Recursion Pharmaceuticals’ stock.

About Recursion Pharmaceuticals

Recursion Pharmaceuticals operates as a clinical-stage biotechnology firm, focusing on the integration of technology into drug discovery through innovations in biology, chemistry, automation, data science, and engineering. The company is developing several drug candidates, including REC-994 for cerebral cavernous malformation in Phase 2 trials, REC-2282 for neurofibromatosis type 2 in Phase 2/3 trials, REC-4881 for familial adenomatous polyposis in Phase 1b/2 trials, REC-3964 for Clostridioides difficile infection in Phase 1 trials, and another form of REC-4881 targeting AXIN1 or APC mutant cancers, which is also in Phase 2 trials.

Investment Considerations

As potential investors evaluate whether to buy shares in Recursion Pharmaceuticals, they should consider the company's recent performance and analyst opinions. While the stock has a current rating of "Moderate Buy," some analysts believe there may be better investment opportunities elsewhere.

Recursion, Pharmaceuticals, Stocks