Certara (NASDAQ:CERT) Shares Gap Down on Disappointing Earnings

Key Points

• Certara shares fell sharply after the company reported quarterly EPS of $0.08, below the $0.09 consensus estimate, while revenue of $93.27 million missed expectations of $98.09 million and declined 10.8% year over year.
• Several analysts cut their price targets following the results, with targets now ranging from $6.00 to $10.00. The consensus rating remains “Hold”, with an average price target of $8.85.
• Institutional investors hold approximately 73.96% of Certara’s shares, while the stock’s market capitalization stands at about $1.10 billion and its reported net margin remains negative.

Shares of Certara, Inc. (NASDAQ:CERT - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $8.18, but opened at $6.33. Certara shares last traded at $6.9460, with a volume of 1,816,245 shares trading hands.

The company reported $0.08 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.01). The business had revenue of $93.27 million during the quarter, compared to analysts' expectations of $98.09 million. Certara had a negative net margin of 3.60% and a positive return on equity of 3.52%. The company's revenue for the quarter was down 10.8% compared to the same quarter last year. During the same period in the previous year, the business posted $0.07 EPS.

Analyst Upgrades and Downgrades

CERT has been the subject of several recent research reports. Barclays decreased their price target on shares of Certara from $8.00 to $6.50 and set an "equal weight" rating for the company in a research report on Tuesday, May 12th. Morgan Stanley reduced their price objective on Certara from $11.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Tuesday, May 12th. Stephens decreased their target price on Certara from $10.00 to $9.00 and set an "overweight" rating for the company in a report on Tuesday, May 12th. Robert W. Baird lowered their target price on Certara from $7.00 to $6.00 and set a "neutral" rating for the company in a research note on Tuesday, May 12th. Finally, Craig Hallum cut their price target on Certara from $10.00 to $8.00 and set a "hold" rating on the stock in a report on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $8.85.

Institutional Investors Weigh In On Certara

Several institutional investors have recently modified their holdings of CERT. UBS Group AG lifted its stake in Certara by 50.7% during the fourth quarter. UBS Group AG now owns 2,489,603 shares of the company's stock worth $21,933,000 after purchasing an additional 837,648 shares during the last quarter. Granite Investment Partners LLC purchased a new position in Certara in the first quarter valued at approximately $2,130,000. Dimensional Fund Advisors LP increased its stake in Certara by 2.1% in the first quarter. Dimensional Fund Advisors LP now owns 8,562,508 shares of the company's stock valued at $48,806,000 after purchasing an additional 175,024 shares during the last quarter. Jefferies Financial Group Inc. acquired a new stake in Certara during the fourth quarter worth approximately $26,706,000. Finally, Y Intercept Hong Kong Ltd acquired a new stake in Certara during the first quarter worth approximately $1,980,000. 73.96% of the stock is owned by hedge funds and other institutional investors.

Certara Stock Down 13.9%

The firm has a market cap of $1.10 billion, a PE ratio of -70.55 and a beta of 1.44. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.88 and a current ratio of 1.88. The firm's 50-day moving average price is $6.36 and its two-hundred day moving average price is $6.57.

About Certara

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.