Certara (NASDAQ:CERT) Shares Gap Down After Earnings Miss

Key Points

• Certara shares gapped down after the company reported weaker-than-expected quarterly results, opening at $5.22 versus the prior close of $6.31.
• The company posted EPS of $0.09, missing analyst estimates of $0.11 and down from $0.14 in the same quarter last year, though revenue still rose 0.8% year over year.
• Analyst sentiment remains mixed but generally positive, with a consensus Moderate Buy rating and an average price target of $10.44, despite some recent downgrades to Hold.

Certara, Inc. (NASDAQ:CERT - Get Free Report) gapped down before the market opened on Monday following a weaker than expected earnings announcement. The stock had previously closed at $6.31, but opened at $5.22. Certara shares last traded at $5.5690, with a volume of 833,090 shares.

The company reported $0.09 earnings per share for the quarter, missing analysts' consensus estimates of $0.11 by ($0.02). Certara had a positive return on equity of 4.20% and a negative net margin of 0.38%.During the same period in the previous year, the business posted $0.14 earnings per share. The firm's revenue for the quarter was up .8% compared to the same quarter last year. Certara has set its FY 2026 guidance at 0.350-0.410 EPS.

Analyst Ratings Changes

A number of analysts have weighed in on the company. TD Cowen reiterated a "buy" rating on shares of Certara in a research note on Thursday, February 26th. Wall Street Zen lowered Certara from a "buy" rating to a "hold" rating in a research note on Sunday, February 15th. Leerink Partners reiterated an "outperform" rating and issued a $10.00 target price on shares of Certara in a research note on Thursday, February 26th. Craig Hallum lowered Certara from a "buy" rating to a "hold" rating and set a $10.00 target price on the stock. in a research note on Friday, February 27th. Finally, Barclays restated an "equal weight" rating and set a $8.00 price target on shares of Certara in a research note on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $10.44.

Hedge Funds Weigh In On Certara

Institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. increased its stake in shares of Certara by 2,733.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,975 shares of the company's stock valued at $26,000 after buying an additional 2,870 shares during the period. First Horizon Corp bought a new stake in Certara during the third quarter valued at about $30,000. Versant Capital Management Inc boosted its position in Certara by 66.7% during the third quarter. Versant Capital Management Inc now owns 2,881 shares of the company's stock valued at $35,000 after purchasing an additional 1,153 shares in the last quarter. Osaic Holdings Inc. boosted its position in Certara by 50.7% during the second quarter. Osaic Holdings Inc. now owns 3,491 shares of the company's stock valued at $41,000 after purchasing an additional 1,175 shares in the last quarter. Finally, Global Retirement Partners LLC boosted its position in Certara by 45.0% during the third quarter. Global Retirement Partners LLC now owns 5,636 shares of the company's stock valued at $69,000 after purchasing an additional 1,749 shares in the last quarter. Hedge funds and other institutional investors own 73.96% of the company's stock.

Certara Stock Performance

The business has a 50-day moving average of $6.25 and a two-hundred day moving average of $8.11. The company has a market cap of $869.94 million, a P/E ratio of -567.40 and a beta of 1.53. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.05 and a quick ratio of 2.05.

Certara Company Profile

Certara is a biosimulation software and services company that partners with pharmaceutical, biotechnology and medical device developers to accelerate drug discovery, development and regulatory approval. The company's platform integrates quantitative pharmacology, real-world evidence, artificial intelligence and machine learning to model and simulate drug behavior across a range of therapeutic areas and patient populations. By applying these mechanistic and data-driven approaches, Certara helps its clients predict clinical outcomes, optimize dosing strategies and streamline decision-making throughout the product lifecycle.

The company's offerings are divided into software tools and consulting services.

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