Christopher Gibson, a director at Recursion Pharmaceuticals (NASDAQ: RXRX), carried out a programmed disposition of company stock on February 4, 2026, selling 40,000 shares of Class A Common Stock at $4.12 per share for total gross proceeds of $164,800. The sale was executed under a Rule 10b5-1 trading plan, according to regulatory filings.
On the same February 4 transaction date, Gibson also converted 40,000 shares of Class B Common Stock into Class A Common Stock, a structural change in his holdings noted in the paperwork.
A separate filing shows that on February 6 Gibson acquired 30,346 shares of Class A Common Stock, with the company withholding 10,364 shares to meet tax obligations. That issuance was priced at $3.56 per share, representing total consideration of $36,895 tied to the acquisition and withholding arrangement.
Recursion's stock has faced substantial downward pressure over the past year, declining roughly 45% year-over-year. At the time of the filings the share price was quoted at $3.96, slightly below InvestingPro’s Fair Value estimate for the company. InvestingPro data also notes technical indicators - specifically the relative strength index - that suggest the equity is in oversold territory after a 5% decline over the prior week.
Alongside the insider activity, Recursion has been reporting clinical progress. The company announced positive outcomes from the Phase 1b/2 TUPELO trial evaluating REC-4881, a MEK1/2 inhibitor being investigated for familial adenomatous polyposis (FAP). Trial results indicated that 75% of evaluable patients experienced reductions in total polyp burden, with a median reduction of 43% after 12 weeks of treatment. Moreover, 82% of patients who had reductions sustained them 12 weeks after treatment cessation, reflecting a median reduction of 53% from baseline.
Those clinical data points contributed to a change in analyst stance at a major bank. JPMorgan upgraded Recursion from Neutral to Overweight and lifted its price target to $11.00, citing a larger-than-anticipated addressable patient population for REC-4881 as the rationale reflected in its commentary.
Recursion has scheduled a webinar for December 8, 2025, to present updated TUPELO trial data and to offer further details on the safety and efficacy profile of REC-4881 as monotherapy for FAP.
InvestingPro materials referenced in company and market summaries indicate that Recursion has a weak overall financial health score and is rapidly drawing down cash balances, a dynamic highlighted alongside the insider transactions and the clinical developments. Investors looking for expanded analysis can access a Pro Research Report and an additional set of ProTips for RXRX on InvestingPro.
Summary
Recursion director Christopher Gibson sold 40,000 Class A shares under a 10b5-1 plan for $164,800 and converted 40,000 Class B shares to Class A on February 4, 2026. Gibson later received 30,346 Class A shares on February 6, with 10,364 withheld for taxes at $3.56 per share totaling $36,895. These moves coincide with a 45% decline in RXRX over the past year and company-level concerns about cash burn and financial health, even as positive TUPELO trial results for REC-4881 spurred a JPMorgan upgrade and a planned December 8, 2025 webinar to present updated data.
Key points
- Insider transaction: Director sold 40,000 Class A shares at $4.12 under a Rule 10b5-1 plan and converted 40,000 Class B shares to Class A on February 4, 2026.
- Subsequent issuance: On February 6, 30,346 Class A shares were acquired by Gibson with 10,364 shares withheld for taxes at $3.56, totaling $36,895.
- Clinical and analyst developments: TUPELO trial data for REC-4881 showed notable reductions in polyp burden and led JPMorgan to upgrade the stock and raise its $11.00 price target; a webinar on updated data is scheduled for December 8, 2025.
Risks and uncertainties
- Financial strain: The company is noted to have weak overall financial health and is rapidly consuming cash, which poses liquidity and execution risks for operations and development programs - relevant to investors and capital markets stakeholders.
- Share price pressure: The stock has fallen about 45% over the last year and is trading below InvestingPro’s Fair Value estimate; technical indicators suggest oversold conditions, but continued volatility is possible, affecting equity investors and traders.
- Data interpretation and timing: While TUPELO results were positive, further updates are scheduled and market interpretation can change pending the December 8, 2025 webinar and peer review of longer-term safety and efficacy outcomes.