Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) director Blake Borgeson recently sold a total of 11,447 shares of the company's Class A common stock, netting over $90,000 from the transaction. The sale was executed at a weighted average price of $7.9465 per share, with individual trades occurring within a price range of $7.81 to $8.26.
The transaction, which took place on April 30, 2024, was conducted under a Rule 10b5-1 trading plan, a pre-arranged stock trading plan that allows insiders of publicly traded corporations to sell their shares at a predetermined time. This allows for planned selling by insiders without the risk of accusations of insider trading, as the plan was adopted well in advance of the transaction itself.
Following the sale, Borgeson's remaining stake in Recursion Pharmaceuticals consists of 7,218,414 shares of Class A common stock, indicating a substantial continued investment in the company. The details of the transaction, including the range of sale prices, were disclosed in compliance with SEC regulations, which mandate transparency in the trading activities of company insiders.
Investors often monitor insider buying and selling as it can provide insights into how executives and directors view the company's prospects. However, such transactions do not necessarily indicate a change in the company's fundamental outlook and can be motivated by a variety of personal financial considerations.
The sale represents a significant transaction by a key member of Recursion Pharmaceuticals' leadership and is part of the ongoing financial disclosures expected from company executives and directors.
InvestingPro Insights
As investors digest the news of Blake Borgeson's recent sale of Recursion Pharmaceuticals shares, a look at the company's financials through InvestingPro data may offer additional context. Recursion Pharmaceuticals, with a market capitalization of $2.09 billion, has shown a significant year-over-year price total return of 82.89%, reflecting investor optimism about the company's potential despite the lack of profitability in the last twelve months. The company's revenue for the last twelve months as of Q4 2023 stood at $44.58 million, demonstrating a growth of 11.88%.
However, the company's gross profit margin during the same period was 4.46%, which indicates challenges in maintaining profitability at the gross level. This aligns with one of the InvestingPro Tips, which points out the company's weak gross profit margins. Additionally, another InvestingPro Tip highlights that analysts are not anticipating the company to be profitable this year, which may be a factor for investors to consider in light of the insider sale.
For those interested in a more comprehensive analysis, InvestingPro offers additional insights into Recursion Pharmaceuticals. There are currently 9 more InvestingPro Tips available for RXRX, accessible through InvestingPro. These tips may help investors make more informed decisions, especially when considering the mixed signals of insider transactions and financial performance. To explore these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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