Recursion Pharmaceuticals director sells over $78k in company stock By Investing.com

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) Director Blake Borgeson has recently sold a significant amount of company stock. On September 17, 2024, Borgeson sold 11,447 shares at a weighted average price of $6.8431, totaling approximately $78,332.

The sale was conducted under a Rule 10b5-1 trading plan, which Borgeson had adopted on August 18, 2023. This type of plan allows company insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information. The transaction was carried out through multiple trades with prices ranging from $6.74 to $7.03 per share.

After this transaction, Borgeson still holds a substantial amount of Recursion Pharmaceuticals stock, with 7,109,875 shares remaining in his possession. The company, which operates in the biological products industry, continues its work in the life sciences sector from its base in Salt Lake City, Utah.

Investors and analysts often monitor insider sales as they may provide insights into an insider’s perspective on the company’s current valuation and future prospects. However, it is also common for executives to sell shares for reasons unrelated to the company’s performance, such as diversifying their investment portfolio or funding personal expenditures.

Recursion Pharmaceuticals has not released any official statement regarding this latest stock transaction by one of its directors. The details of the sale, including the range of sale prices, can be provided upon request by the Securities and Exchange Commission, the issuer, or a security holder of the issuer, as per the footnotes in the SEC filing.

In other recent news, Recursion Pharmaceuticals has been at the center of several significant developments. The company reported top-line results from its Phase 2 SYCAMORE trial of REC-994, a drug candidate for symptomatic cerebral cavernous malformation (CCM). The study met its primary safety endpoint and showed promising trends in MRI-based efficacy measures. However, no significant improvements in patient or physician-reported outcomes were observed.

Needham maintained a Buy rating on Recursion Pharmaceuticals but lowered the price target to $11 from $16, while Jefferies reduced its price target to $6.00 but kept a Hold rating. Both adjustments followed the release of the Phase 2 trial results.

In addition, Recursion Pharmaceuticals announced a $30 million deal with Genentech and plans for a public offering of $200 million worth of Class A common stock. The company also secured a commitment from Evotec SE to support its proposed acquisition of UK-based Exscientia plc.

Changes in leadership have occurred as well, with Dr. Robert Hershberg appointed as the new Chair of the Board, and Dr. Najat Khan joining the company as its new Chief R&D Officer and Chief Commercial Officer. These developments underscore Recursion Pharmaceuticals’ ongoing efforts to advance its operations and create value.

InvestingPro Insights

In light of the recent stock sale by Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) Director Blake Borgeson, it’s important for investors to consider the company’s financial health and market performance. According to InvestingPro, Recursion Pharmaceuticals holds more cash than debt on its balance sheet, which is a positive sign for the company’s financial stability. However, it’s worth noting that the company is quickly burning through cash and has weak gross profit margins, which might be a concern for long-term sustainability.

InvestingPro Data reveals that Recursion Pharmaceuticals has a market capitalization of $1.95 billion and is currently trading at a high revenue valuation multiple, with a price-to-book ratio of 3.34 as of the last twelve months ending Q2 2024. Despite showing a quarterly revenue growth of 30.86% in Q2 2024, the company’s overall revenue growth has slightly declined by 0.7% during the same period. The gross profit margin stands at a negative 548.94%, underscoring the challenges the company faces in terms of profitability.

Investors should also be aware that analysts do not anticipate Recursion Pharmaceuticals will be profitable this year, and the company has not been profitable over the last twelve months. Additionally, Recursion Pharmaceuticals does not pay a dividend, which may influence investment decisions for those seeking income-generating stocks.

For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/RXRX, which can provide further insights into Recursion Pharmaceuticals’ financial health and market standing.

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