Sumitomo Mitsui Trust Group Inc. Trims Stock Holdings in Schrodinger, Inc. $SDGR

Key Points

• Sumitomo Mitsui Trust Group cut its stake in Schrödinger by 32.3% in Q1, selling 1.52 million shares and leaving it with 3.19 million shares valued at about $36.2 million.
• Analyst sentiment remains cautious: recent reports included a downgrade to “strong sell” and multiple price-target cuts, with the broader consensus rating at Hold and an average target of $20.25.
• Schrödinger’s latest earnings missed EPS estimates even though revenue beat expectations, and CEO Ramy Farid also sold shares in an insider transaction under a pre-arranged trading plan.

Sumitomo Mitsui Trust Group Inc. reduced its holdings in shares of Schrodinger, Inc. (NASDAQ:SDGR - Free Report) by 32.3% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,190,837 shares of the company's stock after selling 1,523,930 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 4.32% of Schrodinger worth $36,248,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Schrodinger by 2.0% during the 4th quarter. Vanguard Group Inc. now owns 6,464,426 shares of the company's stock valued at $115,584,000 after purchasing an additional 125,349 shares during the last quarter. Rubric Capital Management LP raised its stake in Schrodinger by 5.4% during the 3rd quarter. Rubric Capital Management LP now owns 5,268,817 shares of the company's stock valued at $105,692,000 after buying an additional 268,817 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Schrodinger by 12.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,717,890 shares of the company's stock valued at $66,476,000 after acquiring an additional 414,231 shares during the period. Amova Asset Management Americas Inc. boosted its holdings in shares of Schrodinger by 6.8% in the fourth quarter. Amova Asset Management Americas Inc. now owns 2,819,670 shares of the company's stock worth $50,359,000 after buying an additional 180,735 shares during the last quarter. Finally, Lazard Asset Management LLC boosted its stake in shares of Schrodinger by 65.3% during the 3rd quarter. Lazard Asset Management LLC now owns 2,346,441 shares of the company's stock worth $47,070,000 after acquiring an additional 927,234 shares during the last quarter. 79.05% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms recently issued reports on SDGR. Wall Street Zen lowered shares of Schrodinger from a "hold" rating to a "strong sell" rating in a report on Saturday, May 9th. Morgan Stanley dropped their price target on Schrodinger from $19.00 to $17.00 and set an "equal weight" rating for the company in a research note on Thursday, May 14th. UBS Group reduced their target price on shares of Schrodinger from $18.00 to $13.00 and set a "neutral" rating on the stock in a report on Tuesday, March 17th. Finally, KeyCorp dropped their price objective on shares of Schrodinger from $25.00 to $20.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $20.25.

Insiders Place Their Bets

In other Schrodinger news, CEO Ramy Farid sold 43,000 shares of the firm's stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $12.33, for a total value of $530,190.00. Following the completion of the sale, the chief executive officer directly owned 330,824 shares in the company, valued at $4,079,059.92. This trade represents a 11.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.10% of the stock is currently owned by company insiders.

Schrodinger Price Performance

SDGR stock opened at $16.41 on Tuesday. The business has a 50-day moving average price of $14.66 and a 200 day moving average price of $14.03. Schrodinger, Inc. has a 1-year low of $10.94 and a 1-year high of $23.75. The company has a market capitalization of $1.21 billion, a P/E ratio of -11.64 and a beta of 1.62.

Schrodinger (NASDAQ:SDGR - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($0.81) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.25). The business had revenue of $58.59 million for the quarter, compared to the consensus estimate of $47.57 million. Schrodinger had a negative net margin of 40.61% and a negative return on equity of 30.85%. Schrodinger's revenue for the quarter was down 1.6% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.82) earnings per share. On average, analysts anticipate that Schrodinger, Inc. will post -1.89 earnings per share for the current fiscal year.

Schrodinger Company Profile

Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

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