Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) director Blake Borgeson has recently sold a portion of his holdings in the company. On October 1, 2024, Borgeson sold 11,447 shares of Class A Common Stock at a weighted average price of $6.2156, totaling approximately $71,149.
The transaction was conducted under a Rule 10b5-1 trading plan, which was previously adopted by Borgeson on August 18, 2023. Such plans allow company insiders to sell shares over a predetermined period of time, to avoid concerns about transactions based on non-public information.
The shares were sold in multiple trades with prices ranging from $6.09 to $6.56. Following this transaction, Borgeson still owns a substantial amount of Recursion Pharmaceuticals stock, with 7,098,428 shares remaining in his possession.
Investors and the market often monitor insider sales as they may provide insights into an insider's perspective on the company's current valuation or future prospects. However, it is also common for executives to sell shares for personal financial management reasons, such as diversification or liquidity needs.
Recursion Pharmaceuticals, based in Salt Lake City, Utah, operates in the biological products industry, focusing on the development of drugs through a combination of biology and artificial intelligence.
The company has not made any public statements regarding this latest stock transaction by Director Borgeson. For further details on the specific trades, Borgeson has agreed to provide full information upon request by the Securities and Exchange Commission, the issuer, or a security holder of the issuer.
In other recent news, Recursion Pharmaceuticals has received FDA clearance for a Phase 1/2 clinical trial of its new drug, REC-1245, targeting solid tumors and lymphoma. The trial is expected to begin in the fourth quarter of 2024. KeyBanc Capital Markets has maintained its Overweight rating and $12.00 price target for Recursion's shares following this development.
In other advancements, Recursion has announced a $30 million deal with Genentech and plans for a $200 million public offering of Class A common stock. The company has also secured support from Evotec SE for its proposed acquisition of UK-based Exscientia plc, bringing total shareholder support for the transaction to approximately 53%.
Changes in leadership have also occurred at Recursion, with Dr. Robert Hershberg appointed as the new Chair of the Board, and Dr. Najat Khan joining as the new Chief R&D Officer and Chief Commercial Officer.
On the other hand, the company's Phase 2 SYCAMORE trial for REC-994, a treatment for Cerebral Cavernous Malformations (CCM), met its primary safety endpoint but did not observe improvements in patient or physician-reported outcomes. Analyst firms such as Needham, Jefferies, KeyBanc, and TD Cowen have provided varied feedback on this development, adjusting their price targets while maintaining their ratings on Recursion's shares.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Recursion Pharmaceuticals' financial position and market performance, providing context to Director Borgeson's recent stock sale.
As of the latest quarter, Recursion's market capitalization stands at $1.71 billion. The company's stock has experienced significant volatility, with a notable 14.78% decline in the past week alone. This recent downturn aligns with one of the InvestingPro Tips, which highlights that the stock "has taken a big hit over the last week."
Despite the recent stock performance, Recursion maintains a strong liquidity position. An InvestingPro Tip notes that the company "holds more cash than debt on its balance sheet," and its "liquid assets exceed short-term obligations." This financial cushion could provide some reassurance to investors in light of the insider sale.
However, it's important to note that Recursion is "quickly burning through cash" and "not profitable over the last twelve months," according to InvestingPro Tips. The company's revenue for the last twelve months as of Q2 2024 was $49.63 million, with a concerning gross profit margin of -548.94%.
These financial metrics underscore the challenges facing Recursion as it continues to invest heavily in drug development. The recent insider sale by Director Borgeson should be viewed in the context of these broader financial trends.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips on Recursion Pharmaceuticals, providing deeper insights into the company's financial health and market position.
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