What's Going On With Recursion Pharmaceuticals Stock On Thursday?

Recursion Pharmaceuticals Inc RXRX shares are trading higher after Nvidia Corp NVDA, in its 13F filing, disclosed a small stake in the company.

As per the SEC filing, Nvidia’s stake in Recursion Pharmaceuticals was valued at $75.9 million, with 7.7 million shares.

In July 2023, Nvidia disclosed a $50 million investment in Recursion. 

Founded in 2013, Recursion Pharmaceuticals combines experimental biology, bioinformatics, and artificial intelligence in a hybrid lab-to-cloud platform to identify treatments for any disease that can be modeled at the cellular level.

“Generative AI is a revolutionary tool to discover new medicines and treatments,” said Jensen Huang, founder and CEO of NVIDIA, in July 2023.

In its press release, Recursion said it plans to utilize its vast proprietary biological and chemical dataset, which exceeds 23 petabytes and 3 trillion searchable gene and compound relationships, to accelerate the training of foundation models on NVIDIA DGX Cloud for possible commercial license/release on BioNeMo, NVIDIA’s cloud service for generative AI in drug discovery.

The shares are trading higher on a heavy session volume of 1.595 million, compared to the average volume of 5.494 million, as per data from Benzinga Pro.

In January, Recursion Pharmaceuticals unveiled LOWE (Large Language Model-Orchestrated Workflow Engine), its new software designed to perform complex drug discovery tasks using a natural language interface, at the J.P. Morgan Healthcare Conference.

Is RXRX A Good Stock To Buy?

Wall Street analysts view Recursion Pharmaceuticals on the whole as a Buy, given the history of coverage over the past three months. Gil Blum from Needham in Recursion Pharmaceuticals is the most optimistic.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Recursion Pharmaceuticals rose 62.52%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which fell 19.96% over the past year.

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Price Action: RXRX shares are up 6.96% at $11.68 on the last check Thursday.