Christopher Gibson, the Chief Executive Officer of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), recently sold shares worth $301,800. The transactions took place over two consecutive days, November 13 and 14, 2024. Gibson sold a total of 40,000 shares of Class A Common Stock, with prices ranging from $7.35 to $7.74 per share.
In addition to the sales, Gibson also converted a total of 40,000 shares of Class B Common Stock into Class A Common Stock over the same period. These conversions were executed automatically and were linked to the disposition of shares under a pre-established Rule 10b5-1 trading plan adopted on December 27, 2023.
Following these transactions, Gibson holds 762,656 shares of Class A Common Stock directly. The transactions reflect Gibson's ongoing involvement and stake adjustments in Recursion Pharmaceuticals, a company based in Salt Lake City, Utah, specializing in biological products.
In other recent news, Recursion Pharmaceuticals has been making significant strides in the biopharmaceutical industry. The company recently received approval from its stockholders for the acquisition of Exscientia plc. This move, which received an overwhelming majority of votes, is set to be executed under the United Kingdom (TADAWUL:4280) Companies Act 2006. Recursion has also launched a new model, OpenPhenom-S/16, which is designed to enhance drug discovery processes and is now accessible on Google (NASDAQ:GOOGL) Cloud.
In addition to these developments, the U.S. Food and Drug Administration has given clearance for Recursion's Phase 1/2 clinical trial of REC-1245, a potential treatment for solid tumors and lymphoma. This approval was followed by KeyBanc Capital Markets maintaining its Overweight rating for the company. Recursion has also announced a $30 million deal with Genentech and plans for a $200 million public offering of Class A common stock.
Moreover, the company has secured support from Evotec SE for its proposed acquisition of UK-based Exscientia plc, bringing total shareholder support for the transaction to approximately 53%. There have also been changes in leadership, with Dr. Robert Hershberg appointed as the new Chair of the Board, and Dr. Najat Khan stepping in as the new Chief R&D Officer and Chief Commercial Officer. These are among the recent developments at Recursion Pharmaceuticals as it continues to make strides in the medical field.
InvestingPro Insights
Recursion Pharmaceuticals' recent stock performance and financial metrics provide additional context to CEO Christopher Gibson's recent share transactions. The company's market capitalization stands at $1.76 billion, with the stock trading at $6.91 as of the previous close. This price represents only 39.26% of its 52-week high, indicating a significant pullback from recent peaks.
The company's revenue growth has been impressive, with a 147.62% increase in the most recent quarter. However, Recursion is still operating at a loss, as evidenced by its negative P/E ratio of -5.24 for the last twelve months as of Q3 2024. This financial situation may explain why the CEO is diversifying his holdings while still maintaining a substantial stake in the company.
InvestingPro Tips highlight that Recursion's revenue growth has been accelerating, which aligns with the strong quarterly revenue increase. Additionally, analysts have set a fair value of $10 for the stock, suggesting potential upside from current levels. These insights, along with 11 additional tips available on InvestingPro, can provide investors with a more comprehensive view of Recursion's prospects and the context surrounding insider transactions.
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