Schrodinger (NASDAQ:SDGR) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Schrödinger from “strong buy” to “hold.” Analyst opinions remain mixed, but MarketBeat’s consensus rating is “hold” with a $25.83 average price target.
• The company beat quarterly expectations, reporting a loss of $0.50 per share versus estimates of $0.67 and revenue of $64.49 million versus $47.73 million expected; revenue grew 18.7% year over year.
• Insider Karen Akinsanya sold 31,599 shares for about $928,000 under a pre-arranged trading plan, reducing her stake by 31.12%.

Schrodinger (NASDAQ:SDGR - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

A number of other equities research analysts have also recently weighed in on SDGR. BMO Capital Markets boosted their price objective on Schrodinger from $24.00 to $30.00 and gave the company an "outperform" rating in a research note on Monday, October 12th. Weiss Ratings upgraded shares of Schrodinger from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, August 27th. Wall Street Zen raised shares of Schrodinger from a "strong sell" rating to a "hold" rating in a report on Saturday, August 8th. UBS Group upped their price target on shares of Schrodinger from $19.00 to $21.00 and gave the company a "neutral" rating in a research report on Tuesday, October 20th. Finally, KeyCorp increased their price target on shares of Schrodinger from $20.00 to $32.00 and gave the stock an "overweight" rating in a research note on Friday, October 16th. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $25.83.

Schrodinger Stock Performance

SDGR opened at $28.52 on Tuesday. Schrodinger has a one year low of $10.94 and a one year high of $33.78. The stock has a market capitalization of $2.11 billion, a P/E ratio of -38.54 and a beta of 1.69. The business's 50-day simple moving average is $25.43 and its 200-day simple moving average is $16.95.

Schrodinger (NASDAQ:SDGR - Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported ($0.50) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.67) by $0.17. The firm had revenue of $64.49 million during the quarter, compared to analysts' expectations of $47.73 million. Schrodinger had a negative return on equity of 16.37% and a negative net margin of 20.98%. The business's revenue was up 18.7% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.45) EPS. On average, equities research analysts forecast that Schrodinger will post -1.50 EPS for the current fiscal year.

Insiders Place Their Bets

In other Schrodinger news, insider Karen Akinsanya sold 31,599 shares of the stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $29.37, for a total transaction of $928,062.63. Following the completion of the sale, the insider directly owned 69,956 shares of the company's stock, valued at approximately $2,054,607.72. This trade represents a 31.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 10.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Root Financial Partners LLC purchased a new stake in shares of Schrodinger in the third quarter valued at approximately $50,000. Sterling Capital Management LLC grew its holdings in Schrodinger by 843.8% during the third quarter. Sterling Capital Management LLC now owns 1,916 shares of the company's stock worth $59,000 after acquiring an additional 1,713 shares during the period. Fulcrum Asset Management LLP raised its position in Schrodinger by 1,509.3% in the third quarter. Fulcrum Asset Management LLP now owns 3,476 shares of the company's stock worth $105,000 after acquiring an additional 3,260 shares in the last quarter. Allworth Financial LP purchased a new position in Schrodinger in the second quarter worth $86,000. Finally, Integrated Wealth Concepts LLC acquired a new stake in shares of Schrodinger in the second quarter valued at about $102,000. Institutional investors and hedge funds own 79.05% of the company's stock.

Schrodinger Company Profile

Schrödinger, Inc develops computational software and services designed to support pharmaceutical, biotechnology and materials research. Its platform uses physics-based modeling, machine learning and other computational methods to help scientists analyze molecular interactions, design compounds and prioritize candidates for experimental testing.

The company's software offerings include tools for molecular modeling, quantum chemistry, molecular dynamics, virtual screening, property prediction and free-energy calculations.

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