Jim Cramer: This Health Care Stock Has Been 'Horrendous'

On CNBC's “Mad Money Lightning Round,” on Thursday, Jim Cramer said Recursion Pharmaceuticals (NASDAQ:RXRX) has been “horrendous” and he does not like to recommend horrendous stocks.

On the earnings front, Recursion Pharmaceuticals posted weaker-than-expected results for the third quarter on Nov. 5. The company reported a quarterly loss of 36 cents per share, compared to market estimates of a loss of 31 cents per share. The company reported quarterly sales of $5.175 million, which missed the analyst consensus estimate of $16.983 million.

Recursion also announced a CEO transition plan. Najat Khan, currently chief R&D and commercial officer, will succeed co-founder and CEO Chris Gibson, as chief executive officer and President.

Price Action: Recursion Pharmaceuticals shares jumped 5.6% to settle at $4.92 on Thursday.

Recursion Pharmaceuticals is currently showing a mixed technical picture for traders. The stock is trading 12.2% above its 20-day SMA, which suggests some short-term strength, but it’s struggling below its 50-day, 100-day, and 200-day SMAs, indicating a bearish longer-term trend.

The RSI is at 54.50, which is neutral territory, suggesting that there's no immediate overbought or oversold pressure. This level indicates that momentum could shift either way, so traders should watch for signs of strength or weakness in the coming sessions.

MACD is above its signal line, indicating bullish momentum, which could be a positive sign for traders looking for a potential reversal. However, this needs to be confirmed with price action, especially given the stock’s position relative to its moving averages.

Currently, there are no clear support or resistance levels defined, which makes it tricky for traders to anticipate price movements. If the stock approaches the recent swing high from October, it could signal a potential breakout, while a move towards the recent swing low from November might indicate further downside.

In April, the stock experienced a death cross, with the 50-day SMA falling below the 200-day SMA, suggesting a bearish trend. This crossover indicates that the stock may face continued selling pressure unless it can reclaim those moving averages.

Over the past 12 months, RXRX has declined by 25.87%, reflecting a challenging longer-term trend.

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