In a recent transaction, Tina Marriott, the President and COO of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), sold shares of the company's stock, resulting in a total sale value of $42,004. The transaction took place on September 26, with the sale price per share ranging from $6.84 to $7.16, averaging at $7.0008. In addition to the sale, Marriott also purchased $6,360 worth of stock at a price of $1.06 per share.
Marriott's transactions were conducted under a 10b5-1 trading plan, which was established earlier this year on March 1, 2024. A 10b5-1 trading plan allows company insiders to set up a predetermined schedule for buying and selling stock to avoid accusations of insider trading.
The sales were executed in multiple trades, as noted in the footnote of the SEC filing, with Marriott committing to provide full information regarding the number of shares sold at each separate price upon request. Following the sale, Marriott's ownership in Class A Common Stock decreased to 521,138 shares.
On the same day, Marriott also made a purchase of 6,000 shares, which increased her holdings to a total of 527,138 shares before the sale. This buy transaction took place at a fixed price of $1.06 per share.
Investors often monitor the buying and selling activities of company executives as they can provide insights into the executive's view of the company's future performance. However, it is important to note that these transactions do not necessarily indicate a change in company strategy or performance and may be part of an executive's personal financial planning strategy.
Marriott's recent transactions highlight the ongoing financial activities within Recursion Pharmaceuticals, a company that operates within the biological products space, excluding diagnostic substances. The company is based in Salt Lake City, Utah, and is incorporated in Delaware.
In other recent news, Recursion Pharmaceuticals has been at the forefront of some significant developments. The company reported encouraging results from its Phase 2 trial for REC-994, a treatment for Cerebral Cavernous Malformation (CCM). The trial met its primary safety endpoint and suggested potential reductions in lesion volume, particularly at the highest dose. However, no improvements in patient or physician-reported outcomes were observed.
Needham maintained a Buy rating on Recursion Pharmaceuticals but lowered the price target to $11, citing increased perception of development risk for REC-994. Meanwhile, Jefferies reduced its price target to $6.00 while keeping a Hold rating. KeyBanc reaffirmed its Overweight rating and $12.00 price target, and TD Cowen also maintained a Hold rating.
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, bringing total shareholder support for the transaction to approximately 53%.
Lastly, changes in leadership have occurred, 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 recent developments reflect Recursion Pharmaceuticals' ongoing efforts to advance its internal pipeline and expand its operations.
InvestingPro Insights
To provide additional context to Tina Marriott's recent stock transactions at Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), let's examine some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Recursion Pharmaceuticals has a market capitalization of $1.86 billion. The company's revenue for the last twelve months as of Q2 2024 stood at $49.63 million, with a quarterly revenue growth of 30.86% in Q2 2024. This growth is noteworthy, especially considering the overall revenue decline of 0.7% over the last twelve months.
An InvestingPro Tip indicates that Recursion holds more cash than debt on its balance sheet, which could be seen as a positive factor for financial stability. This aligns with another tip stating that the company's liquid assets exceed short-term obligations, potentially providing a cushion for operational needs.
However, investors should be aware that Recursion is currently not profitable, with a negative gross profit of $272.46 million and an operating income of -$396.42 million over the last twelve months. An InvestingPro Tip highlights that the company is quickly burning through cash, which may explain the recent stock transactions by executives like Marriott.
It's worth noting that Recursion is trading at a high revenue valuation multiple, as pointed out by another InvestingPro Tip. This could suggest that the market has high expectations for the company's future performance, despite its current lack of profitability.
For those interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Recursion Pharmaceuticals, providing a deeper understanding of the company's financial position and market outlook.
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