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

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) saw significant gains recently, with its shares rising 23.9% during trading on Monday. The stock peaked at $10.76 before ending the day at $10.53. A total of 82,298,499 shares were traded during this busy session, representing a remarkable 344% increase compared to the average trading volume of 18,530,172 shares. In contrast, the stock had previously closed at $8.50.

Analyst Ratings Changes

Analysts have been weighing in on Recursion Pharmaceuticals. Recently, Needham & Company LLC reaffirmed a "buy" rating for the company and set a target price of $11.00 for its shares in a report released on February 6th. Conversely, KeyCorp adjusted their price target for Recursion Pharmaceuticals, reducing it from $12.00 to $10.00 while maintaining an "overweight" rating as of January 8th.

Recursion Pharmaceuticals Trading Performance

The company's market capitalization stands at $4.11 billion, with a price-to-earnings ratio of -6.88. Its beta is 0.86, indicating relatively lower volatility compared to the market. The stock's 50-day simple moving average is reported at $7.27, while the 200-day simple moving average sits at $6.90. The debt-to-equity ratio is low at 0.04, which suggests a strong balance sheet, and the current ratio as well as the quick ratio both sit at 4.35, indicating good liquidity.

Institutional Trading Activities

In recent months, several hedge funds have altered their positions in Recursion Pharmaceuticals. Notably, Exchange Traded Concepts LLC increased its stake by 24.9% during the third quarter, acquiring 5,021 additional shares for a total of 25,182 shares valued at $166,000. Vontobel Holding Ltd. also opened a new position worth $70,000 during the same period. Allspring Global Investments Holdings LLC and Foundations Investment Advisors LLC have done the same, with the latter boosting their holdings by 25% to reach 193,036 shares valued at $1,272,000. Overall, institutional investors and hedge funds own 89.06% of Recursion Pharmaceuticals stock.

Company Overview

Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology firm committed to decoding biology by leveraging cutting-edge technology in biology, chemistry, automation, data science, and engineering to revolutionize drug discovery. The company is actively developing several treatments: REC-994 is undergoing Phase 2 clinical trials for cerebral cavernous malformation; REC-2282 is in Phase 2/3 trials addressing neurofibromatosis type 2; REC-4881 is in Phase 1b/2 trials aimed at familial adenomatous polyposis; REC-3964 is in Phase 1 trials targeting Clostridioides difficile infections; and REC-4881 is additionally being tested in Phase 2 trials for AXIN1 or APC mutant cancers.

Investment Considerations

The current performance of Recursion Pharmaceuticals has raised questions about the investment potential of the stock. While analysts give it a "Moderate Buy" rating, some investors may consider exploring other options that are considered better opportunities. It's advisable to conduct thorough research and weigh the prospects of various stocks before making investment decisions.

Recursion, Pharmaceuticals, Stocks