Schrodinger (NASDAQ:SDGR) Upgraded to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Schrodinger from “hold” to “strong buy,” while the broader analyst consensus remains “Moderate Buy” with a $20.80 target price.
• Schrodinger’s latest quarterly results exceeded expectations: adjusted EPS was $0.08 versus a $0.41 loss forecast, and revenue of $58.89 million rose 7.5% year over year.
• The stock opened at $28.90 after an 11.3% decline, while institutional investors own approximately 79.05% of shares; an insider also sold 31,599 shares worth about $928,000.

Schrodinger (NASDAQ:SDGR - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Monday, Zacks reports.

Other equities research analysts have also issued reports about the stock. 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 assumed coverage on Schrodinger in a research note on Friday, August 14th. They set a "neutral" rating and a $19.00 price objective for the company. Finally, Weiss Ratings raised Schrodinger from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $20.80.

Schrodinger Trading Down 11.3%

Shares of NASDAQ SDGR opened at $28.90 on Monday. Schrodinger has a 12 month low of $10.94 and a 12 month high of $33.78. The company has a 50 day simple moving average of $22.03 and a two-hundred day simple moving average of $16.68. The stock has a market cap of $2.13 billion, a price-to-earnings ratio of -39.05 and a beta of 1.62.

Schrodinger (NASDAQ:SDGR - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.08 earnings per share for the quarter, topping analysts' consensus estimates of ($0.41) by $0.49. Schrodinger had a negative net margin of 20.98% and a negative return on equity of 16.37%. The firm had revenue of $58.89 million for the quarter, compared to analyst estimates of $47.19 million. During the same quarter in the prior year, the business earned ($0.65) earnings per share. The business's quarterly revenue was up 7.5% compared to the same quarter last year. Analysts forecast that Schrodinger will post -1.5 EPS for the current year.

Insider Transactions at Schrodinger

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

Institutional Investors Weigh In On Schrodinger

Several hedge funds have recently modified their holdings of SDGR. BlackRock Inc. purchased a new position in shares of Schrodinger during the 2nd quarter valued at approximately $170,978,000. Rubric Capital Management LP increased its holdings in Schrodinger by 43.8% in the 1st quarter. Rubric Capital Management LP now owns 6,000,000 shares of the company's stock worth $68,160,000 after acquiring an additional 1,828,502 shares in the last quarter. Amova Asset Management Americas Inc. raised its position in Schrodinger by 13.2% during the first quarter. Amova Asset Management Americas Inc. now owns 3,190,837 shares of the company's stock worth $36,248,000 after acquiring an additional 371,167 shares during the period. Bank of New York Mellon Corp acquired a new position in Schrodinger during the second quarter worth $4,986,000. Finally, Tejara Capital Ltd purchased a new position in Schrodinger during the second quarter valued at $4,553,000. 79.05% of the stock is owned by hedge funds and other institutional investors.

Schrodinger Company Profile

Schrödinger, Inc is a technology company that develops computational software for pharmaceutical and materials research. Its platform uses physics-based modeling, machine learning and other computational methods to help scientists design and optimize molecules, evaluate potential drug candidates and investigate material properties.

The company's software offerings include molecular modeling, simulation, predictive modeling and collaborative research tools, such as Maestro, Desmond, Jaguar, FEP+ and LiveDesign.

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