Certara (NASDAQ:CERT) Stock Price Down 5.6% - Here's Why

Key Points

• Certara's stock dropped by 5.6% during mid-day trading, reaching a low of $10.76, with a significant decline in trading volume compared to its daily average.
• Analysts have mixed ratings on Certara, with a consensus price target of $15.14 and reports indicating potential for growth despite recent setbacks, including a missed earnings estimate.
• Institutional investors have shown increased interest in Certara, with major stakeholders boosting their positions significantly in the last quarter.

Certara, Inc. (NASDAQ:CERT - Get Free Report) was down 5.6% during mid-day trading on Monday . The stock traded as low as $10.76 and last traded at $10.83. Approximately 576,371 shares changed hands during trading, a decline of 66% from the average daily volume of 1,701,437 shares. The stock had previously closed at $11.47.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on CERT shares. Morgan Stanley started coverage on Certara in a report on Thursday, July 3rd. They set an "equal weight" rating and a $16.00 price objective on the stock. UBS Group cut their price objective on Certara from $17.50 to $15.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. KeyCorp cut their price objective on Certara from $18.00 to $15.00 and set an "overweight" rating on the stock in a report on Monday, July 14th. JMP Securities restated a "market perform" rating on shares of Certara in a report on Tuesday, May 6th. Finally, Barclays raised Certara from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $11.00 to $14.00 in a research note on Thursday, May 8th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $15.14.

Certara Trading Down 5.4%

The firm has a market cap of $1.74 billion, a P/E ratio of 216.54 and a beta of 1.42. The company has a 50 day moving average of $10.80 and a 200 day moving average of $11.55. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.16 and a current ratio of 2.16.

Certara (NASDAQ:CERT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $0.07 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.03). The firm had revenue of $104.57 million during the quarter, compared to the consensus estimate of $104.14 million. Certara had a net margin of 1.97% and a return on equity of 5.11%. The company's quarterly revenue was up 12.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.07 EPS. Analysts predict that Certara, Inc. will post 0.28 EPS for the current fiscal year.

Institutional Investors Weigh In On Certara

Several large investors have recently made changes to their positions in the company. Wasatch Advisors LP grew its stake in shares of Certara by 45.7% in the 2nd quarter. Wasatch Advisors LP now owns 13,532,882 shares of the company's stock valued at $158,335,000 after buying an additional 4,244,230 shares in the last quarter. ArrowMark Colorado Holdings LLC boosted its position in Certara by 164.2% during the fourth quarter. ArrowMark Colorado Holdings LLC now owns 6,213,278 shares of the company's stock worth $66,171,000 after purchasing an additional 3,861,674 shares during the period. Geneva Capital Management LLC boosted its position in Certara by 7.8% during the second quarter. Geneva Capital Management LLC now owns 6,114,895 shares of the company's stock worth $71,544,000 after purchasing an additional 443,206 shares during the period. Teacher Retirement System of Texas boosted its position in Certara by 25.3% during the second quarter. Teacher Retirement System of Texas now owns 5,674,485 shares of the company's stock worth $66,391,000 after purchasing an additional 1,145,554 shares during the period. Finally, Ameriprise Financial Inc. boosted its position in Certara by 27.1% during the second quarter. Ameriprise Financial Inc. now owns 5,460,630 shares of the company's stock worth $63,889,000 after purchasing an additional 1,165,064 shares during the period. Institutional investors own 73.96% of the company's stock.

Certara Company Profile

Certara, Inc, together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics.

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