Simulations Plus, Inc. (NASDAQ:SLP) Receives Average Rating of "Reduce" from Analysts

Key Points

• Analyst sentiment is cautious: Eight brokerages give Simulations Plus an average “Reduce” rating, with one sell and seven hold recommendations. The average 12-month price target is $17.25, below the stock’s $18.46 opening price.
• The company exceeded quarterly expectations: Simulations Plus reported earnings of $0.30 per share versus the $0.23 consensus estimate, while revenue reached $21.89 million compared with expectations of $20.90 million.
• Institutional ownership remains high: Hedge funds and other institutional investors own 78.08% of the company, while insiders hold 19.10%; a director recently sold 4,177 shares under a pre-arranged trading plan.

Shares of Simulations Plus, Inc. (NASDAQ:SLP - Get Free Report) have earned an average rating of "Reduce" from the eight brokerages that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation and seven have issued a hold recommendation on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $17.25.

A number of equities research analysts have recently issued reports on SLP shares. William Blair lowered Simulations Plus from an "outperform" rating to a "market perform" rating in a research report on Wednesday, June 17th. Wall Street Zen downgraded Simulations Plus from a "buy" rating to a "hold" rating in a research report on Saturday, June 13th. Weiss Ratings raised Simulations Plus from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, July 10th. Finally, Craig Hallum cut Simulations Plus from a "buy" rating to a "hold" rating and set a $18.50 target price for the company. in a report on Thursday, June 18th.

Simulations Plus Trading Up 0.2%

SLP opened at $18.46 on Friday. Simulations Plus has a twelve month low of $11.09 and a twelve month high of $21.01. The firm has a market capitalization of $373.45 million, a PE ratio of 46.15 and a beta of 1.33. The firm's 50-day moving average price is $18.37 and its 200 day moving average price is $16.26.

Simulations Plus (NASDAQ:SLP - Get Free Report) last released its quarterly earnings data on Thursday, July 9th. The technology company reported $0.30 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.07. Simulations Plus had a net margin of 9.88% and a return on equity of 13.50%. The company had revenue of $21.89 million during the quarter, compared to the consensus estimate of $20.90 million.

Insider Buying and Selling at Simulations Plus

In related news, Director Walter Woltosz sold 4,177 shares of the company's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $18.44, for a total value of $77,023.88. Following the completion of the sale, the director owned 3,202,131 shares of the company's stock, valued at approximately $59,047,295.64. This represents a 0.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 19.10% of the company's stock.

Hedge Funds Weigh In On Simulations Plus

Institutional investors have recently bought and sold shares of the company. Integrated Wealth Concepts LLC purchased a new stake in shares of Simulations Plus in the 2nd quarter valued at approximately $26,000. GAMMA Investing LLC increased its holdings in shares of Simulations Plus by 26.0% during the 2nd quarter. GAMMA Investing LLC now owns 2,831 shares of the technology company's stock worth $52,000 after buying an additional 585 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of Simulations Plus by 343.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,983 shares of the technology company's stock valued at $73,000 after buying an additional 3,084 shares during the period. Longfellow Investment Management Co. LLC acquired a new position in Simulations Plus in the second quarter valued at approximately $77,000. Finally, PNC Financial Services Group Inc. lifted its holdings in Simulations Plus by 59.3% in the first quarter. PNC Financial Services Group Inc. now owns 4,485 shares of the technology company's stock valued at $53,000 after acquiring an additional 1,669 shares during the last quarter. 78.08% of the stock is owned by hedge funds and other institutional investors.

About Simulations Plus

Simulations Plus, Inc develops software and provides consulting services for pharmaceutical and biotechnology companies involved in drug discovery and development. Its modeling and simulation tools are designed to help researchers evaluate drug candidates, understand how medicines move through the body, assess safety risks and support decisions throughout the development process.

The company's products include GastroPlus, a platform used for physiologically based pharmacokinetic and biopharmaceutic modeling; ADMET Predictor, which helps predict absorption, distribution, metabolism, excretion and toxicity characteristics; and DILIsym, a software platform focused on drug-induced liver injury.

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