Schrodinger, Inc. (SDGR) - What Are Researchers Thinking About This Stock?

Key Points

• Analyst sentiment is mixed: Schrodinger has an average “Hold” rating from eight analysts—four buys, three holds and one sell—with an average 12-month price target of $26.67. Recent firms raised targets, including TD Cowen to $36, while Zacks Research downgraded the stock to “Hold.”
• Quarterly results beat expectations: The company reported an adjusted loss of $0.50 per share versus estimates of a $0.67 loss, and revenue of $64.49 million versus forecasts of $47.73 million. Revenue grew 18.7% year over year.
• Institutional investors own 79.05% of shares; several funds increased or initiated positions. Insider Karen Akinsanya sold 31,599 shares under a pre-arranged trading plan.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) has been assigned an average rating of "Hold" from the eight analysts that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and four have given a buy recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $26.67.

Several brokerages have recently issued reports on SDGR. TD Cowen raised their price objective on shares of Schrodinger from $31.00 to $36.00 and gave the stock a "buy" rating in a research note on Thursday. BMO Capital Markets boosted their price objective on shares of Schrodinger from $24.00 to $30.00 and gave the stock an "outperform" rating in a report on Monday, October 12th. Zacks Research downgraded shares of Schrodinger from a "strong-buy" rating to a "hold" rating in a report on Tuesday, November 3rd. Weiss Ratings raised shares of Schrodinger from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, August 27th. Finally, UBS Group increased their target price on shares of Schrodinger from $19.00 to $21.00 and gave the company a "neutral" rating in a research note on Tuesday, October 20th.

Insiders Place Their Bets

In related news, insider Karen Akinsanya sold 31,599 shares of the business's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $29.37, for a total transaction of $928,062.63. Following the transaction, the insider directly owned 69,956 shares in the company, valued at $2,054,607.72. The trade was a 31.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.10% of the stock is currently owned by company insiders.

Institutional Trading of Schrodinger

A number of hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of Schrodinger during the second quarter valued at approximately $170,978,000. Rubric Capital Management LP raised its stake in shares of Schrodinger by 43.8% in the first quarter. Rubric Capital Management LP now owns 6,000,000 shares of the company's stock valued at $68,160,000 after purchasing an additional 1,828,502 shares in the last quarter. Amova Asset Management Americas Inc. raised its stake in shares of Schrodinger by 13.2% in the first quarter. Amova Asset Management Americas Inc. now owns 3,190,837 shares of the company's stock valued at $36,248,000 after purchasing an additional 371,167 shares in the last quarter. Bank of New York Mellon Corp bought a new position in Schrodinger in the second quarter worth $4,986,000. Finally, Russell Investments Group Ltd. lifted its position in Schrodinger by 53.8% in the third quarter. Russell Investments Group Ltd. now owns 150,488 shares of the company's stock worth $4,673,000 after purchasing an additional 52,632 shares during the period. Institutional investors own 79.05% of the company's stock.

Schrodinger Stock Performance

NASDAQ SDGR opened at $29.82 on Friday. The stock has a 50-day simple moving average of $25.80 and a 200 day simple moving average of $17.08. Schrodinger has a twelve month low of $10.94 and a twelve month high of $33.78. The stock has a market capitalization of $2.20 billion, a PE ratio of -37.75 and a beta of 1.69.

Schrodinger (NASDAQ:SDGR - Get Free Report) last released 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 for the quarter, compared to analyst estimates of $47.73 million. Schrodinger had a negative return on equity of 18.12% and a negative net margin of 22.02%. The company's revenue was up 18.7% on a year-over-year basis. During the same quarter last year, the firm posted ($0.45) EPS. As a group, equities research analysts forecast that Schrodinger will post -1.39 EPS for the current fiscal year.

About Schrodinger

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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