In a recent transaction, Blake Borgeson, a director at Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), sold 11,447 shares of the company’s Class A common stock. The sale, which took place on July 23, 2024, amounted to over $97,000 based on the weighted average sale price of $8.4774 per share.
The transaction was carried out under a Rule 10b5-1 trading plan, which Borgeson had adopted on August 18, 2023. A Rule 10b5-1 trading plan allows insiders to sell shares at predetermined times and prices, offering a defense against potential accusations of trading on nonpublic information.
According to the filing, the shares were sold in multiple trades with prices ranging from $7.94 to $8.68. The reported weighted average price is a reflection of these varied sale prices. Following the transaction, Borgeson continues to hold a substantial number of shares, with a total of 7,155,663 shares remaining in his direct ownership.
Investors and followers of Recursion Pharmaceuticals may request detailed information about the sale, including the specific number of shares sold at each price point, from Borgeson, the Securities and Exchange Commission, or Recursion Pharmaceuticals itself.
The sale was officially signed off by Jonathan Golightly, attorney-in-fact, on July 25, 2024.
Recursion Pharmaceuticals, based in Salt Lake City, Utah, operates within the biotechnology sector focusing on biological products. The company's activities are primarily centered on leveraging machine learning and automation to develop drugs at a faster pace.
In other recent news, Recursion Pharmaceuticals has announced major developments including earnings and leadership changes. The company, known for its AI-driven drug discovery platform, RecursionOS, has revealed plans to conduct a public offering of $200 million worth of its Class A common stock. Goldman Sachs (NYSE:GS) & Co. LLC and J.P. Morgan are leading the offering, which is subject to market conditions.
Recursion Pharmaceuticals has also undergone noteworthy leadership changes. Dr. Robert Hershberg, with over two decades of experience in the biopharmaceutical field, has been appointed as the new Chair of the Board. Additionally, Dr. Najat Khan, former Chief Data Science Officer and Global Head of Strategy and Portfolio at Johnson & Johnson's Innovative Medicine R&D, has joined Recursion as its new Chief R&D Officer and Chief Commercial Officer.
In relation to the company's stock, Jefferies initiated coverage on Recursion Pharmaceuticals with a Hold rating, cautioning investors despite the company's growth potential in AI for drug discovery. The firm set a price target for Recursion Pharmaceuticals at $8.00, suggesting that investors maintain their current positions in Recursion Pharmaceuticals shares until more definitive progress is made in the platform's clinical validation. These are the recent developments that reflect Recursion's commitment to leading in the emerging TechBio space.
InvestingPro Insights
Amid the insider transaction at Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), investors may be keen to understand the company's financial health and market position. According to InvestingPro, Recursion Pharmaceuticals holds a market capitalization of $2.18 billion, with a notable Price/Book ratio of 5.23 as of the last twelve months ending Q1 2024. This ratio suggests that investors are willing to pay a premium for the company's assets relative to the book value. Despite a slight quarterly revenue growth of 13.68% in Q1 2024, the company's overall revenue growth has been negative at -0.88% over the last twelve months.
InvestingPro Tips indicate that Recursion Pharmaceuticals is currently not expected to be profitable this year, with analysts not foreseeing a turnaround in the near term. Moreover, the company's gross profit margins remain weak, registering at -34.5%. However, it's worth noting that Recursion Pharmaceuticals holds more cash than debt on its balance sheet and has liquid assets that exceed its short-term obligations, which could provide some financial flexibility in its operations.
For investors interested in a deeper dive into the company's financial outlook, there are additional InvestingPro Tips available. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to valuable insights that could inform investment decisions.
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