Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) President and Chief Operating Officer, Tina Marriott, has executed a sale of company shares, according to a recent Form 4 filing with the Securities and Exchange Commission. Marriott sold 6,000 shares of Class A Common Stock at prices ranging from $6.91 to $7.575, with a weighted average price of $7.215 per share, totaling approximately $43,290.
The transaction took place on June 27, 2024, and was part of a pre-arranged 10b5-1 trading plan established on March 1, 2024. This trading plan allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information, providing a defense against potential allegations of insider trading.
Additionally, Marriott exercised options to acquire the same number of shares, 6,000, at a price of $1.06 each, amounting to $6,360. This exercise is also part of the 10b5-1 trading plan and aligns with the company's scheduled vesting terms as outlined in various footnotes associated with the SEC filing.
Following these transactions, Marriott's direct ownership in Recursion Pharmaceuticals stands at 535,457 shares of Class A Common Stock. The recent sale and option exercise reflect a routine financial maneuver as part of the executive's investment strategy and compensation structure.
Investors and followers of Recursion Pharmaceuticals will continue to monitor insider transactions as they can provide insights into executive confidence and company performance. The company, known for its focus on biological products, remains a notable player in the life sciences industry.
In other recent news, Recursion Pharmaceuticals announced plans for a $200 million public offering of its Class A common stock, underwritten by Goldman Sachs (NYSE:GS) & Co. LLC, J.P. Morgan, and Allen & Company LLC. The offering's completion is subject to market conditions and the company will provide further details through a preliminary prospectus supplement. In leadership news, the company appointed Dr. Robert Hershberg as the new Chair of the Board, succeeding Martin Chavez. Dr. Hershberg brings over two decades of experience in the biopharmaceutical field. 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 been named Recursion's new Chief R&D Officer and Chief Commercial Officer. These appointments come as Recursion continues to expand its drug discovery efforts using its proprietary platform, the Recursion OS. The company's recent developments highlight its commitment to leading in the emerging TechBio space.
InvestingPro Insights
As Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) navigates through its financial and operational phases, recent metrics from InvestingPro provide a snapshot of the company's current standing. With a market capitalization of approximately $2.01 billion and a challenging revenue growth pattern, the company's financial health is under scrutiny by market watchers. In the last twelve months as of Q1 2024, RXRX reported a revenue of $46.23 million, which represents a slight decline of 0.88%. Despite this, quarter-over-quarter revenue growth was more positive at 13.68%, indicating some resilience in its operational performance.
InvestingPro Tips highlight that Recursion Pharmaceuticals holds more cash than debt on its balance sheet, which is a positive sign for investors looking for financial stability. However, the company is rapidly burning through cash and has been flagged for weak gross profit margins, with a gross profit of -$15.95 million and a gross profit margin of -34.5% in the last twelve months as of Q1 2024. Moreover, analysts are not expecting the company to be profitable this year, which aligns with the reported operating income margin of -816.69% and a significant EBITDA decline of -42.25% in the same period.
For investors interested in the stock's performance, RXRX has experienced a notable decline over the past week, with a 1-week price total return of -14.41%. The 1-month and 3-month returns also reflect a downward trend, at -15.74% and -24.02%, respectively. These figures could be indicative of market sentiment and the company's near-term outlook.
For those considering investing in Recursion Pharmaceuticals, additional InvestingPro Tips can provide deeper insights into the company's financial health and market potential. There are currently 9 additional tips available for RXRX, which can be accessed through InvestingPro's platform. To enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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