Director Blake Borgeson executed a sale of 220,000 Class A common shares of Recursion Pharmaceuticals Inc (NASDAQ: RXRX) on February 3, 2026, according to a Form 4 filing. The shares transacted at $4.20 apiece, producing a gross proceeds figure of $924,000. The disposition was made under a Rule 10b5-1 trading plan that Borgeson adopted on August 31, 2025.
The sale comes as the stock has weakened in recent periods. Recursion shares have declined roughly 5% during the past week and are down about 45% compared with the same point a year ago. At the time of the filing, the market price stood at $3.96, which is below the $4.20 per-share level at which Borgeson sold.
Following the transaction, Borgeson retains direct ownership of 6,429,863 shares of the company. The filing does not indicate any change to his ownership beyond the reported sale.
On the financial front, Recursion’s balance-sheet snapshot shows the company holding more cash than debt, reflected in a current ratio of 4.6. At the same time, the firm is recording significant operating losses: Recursion reported a negative EBITDA of $637.88 million over the last twelve months, indicating substantial cash burn despite a favorable short-term liquidity ratio.
Independent analysis labeled as "Pro" research indicates the stock is trading near its fair value, and supplementary ProTips are noted as providing deeper perspectives on the company’s financial condition and growth profile. The company is listed among over 1,400 U.S. equities that receive comprehensive Pro Research coverage.
Separately, recent clinical developments are notable for the company’s pipeline. Data from the ongoing TUPELO Phase 1b/2 study of investigational agent REC-4881, intended for familial adenomatous polyposis (FAP), reported that 75% of evaluable patients experienced reductions in total polyp burden after 12 weeks, with a median reduction of 43%. Additionally, 82% of patients sustained reductions 12 weeks after stopping therapy, with a median reduction from baseline of 53%.
Those clinical readouts spurred an analyst action at JPMorgan, which upgraded Recursion from Neutral to Overweight and expanded its price target to $11.00. The analyst highlighted a larger-than-anticipated addressable patient population for the MEK 1/2 inhibitor. Recursion plans to present updated TUPELO data in a webinar on December 8, 2025; the company has indicated the presentation will be available through its social media channels and is expected to shed further light on REC-4881 safety and efficacy as a monotherapy for FAP.
The disclosed insider sale, the company’s mixed balance-sheet indicators, and recent clinical progress together frame a nuanced picture: operational losses and cash burn contrast with promising early efficacy signals and analyst interest, while an insider sale executed under a pre-arranged plan adds a data point to investor assessments without necessarily indicating a change in long-term conviction.
Summary
- Blake Borgeson sold 220,000 shares at $4.20 on February 3, 2026, via a Rule 10b5-1 plan, generating $924,000.
- Recursion shares traded at $3.96 at filing time, down 5% over the past week and down 45% year-over-year.
- Post-sale, Borgeson directly owns 6,429,863 shares; company shows more cash than debt (current ratio 4.6) but has a negative LTM EBITDA of $637.88 million.
Key points
- Insider transaction - A director sale executed under a pre-set trading plan, providing transparency on the timing and mechanics of the sale.
- Financial posture - Strong short-term liquidity juxtaposed with substantial negative EBITDA signals ongoing high burn rates affecting biotech and healthcare market participants.
- Clinical momentum - Positive TUPELO results for REC-4881 and a JPMorgan upgrade highlight therapeutic progress and potential market interest in the company’s pipeline.
Risks and uncertainties
- Continued cash burn - The sizeable negative EBITDA underscores the firm's reliance on capital markets or financing strategies, a risk for investors aligned with biotech companies.
- Market valuation pressure - The share price has fallen materially year-over-year and trades below the insider’s sale price, indicating near-term valuation and sentiment challenges in equity markets.
- Clinical data dependency - Future investor sentiment and analyst coverage may hinge on forthcoming TUPELO updates; clinical outcomes will remain a key uncertainty for healthcare and biotech sectors.