Schrodinger (NASDAQ:SDGR) Given New $19.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley has cut the price target for Schrodinger (NASDAQ:SDGR) from $28.00 to $19.00, indicating a potential downside of 1.81% from its current price.
• The stock has received mixed reviews, with Citigroup downgrading it to a "neutral" rating, while Barclays issued an "overweight" rating with a $25.00 target.
• Schrodinger's recent quarterly earnings showed a revenue increase of 15.7% year-over-year, with an EPS of ($0.59), exceeding expectations.

Schrodinger (NASDAQ:SDGR - Get Free Report) had its target price lowered by Morgan Stanley from $28.00 to $19.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's target price suggests a potential downside of 6.50% from the stock's previous close.

A number of other research analysts have also recently issued reports on the stock. Citigroup cut shares of Schrodinger from a "buy" rating to a "neutral" rating and reduced their price objective for the company from $35.00 to $20.00 in a report on Friday, August 15th. KeyCorp cut their price target on shares of Schrodinger from $32.00 to $30.00 and set an "overweight" rating on the stock in a report on Monday, July 14th. Finally, Barclays assumed coverage on shares of Schrodinger in a report on Thursday, August 14th. They set an "overweight" rating and a $25.00 price target on the stock. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $27.83.

Schrodinger Stock Up 3.8%

NASDAQ:SDGR traded up $0.74 during trading hours on Monday, reaching $20.32. The company had a trading volume of 1,895,835 shares, compared to its average volume of 1,387,612. The firm has a market cap of $1.50 billion, a price-to-earnings ratio of -8.19 and a beta of 1.67. The business's 50-day simple moving average is $20.66 and its two-hundred day simple moving average is $22.16. Schrodinger has a twelve month low of $16.60 and a twelve month high of $28.47.

Schrodinger (NASDAQ:SDGR - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.59) EPS for the quarter, topping analysts' consensus estimates of ($0.83) by $0.24. The business had revenue of $54.76 million during the quarter, compared to analysts' expectations of $52.03 million. Schrodinger had a negative net margin of 76.22% and a negative return on equity of 45.70%. The business's quarterly revenue was up 15.7% on a year-over-year basis. During the same period last year, the company posted ($0.66) earnings per share. As a group, equities analysts predict that Schrodinger will post -2.37 earnings per share for the current year.

Institutional Trading of Schrodinger

Several hedge funds have recently added to or reduced their stakes in SDGR. Farther Finance Advisors LLC raised its position in Schrodinger by 347.4% in the second quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock worth $26,000 after acquiring an additional 997 shares during the period. Point72 Hong Kong Ltd bought a new stake in Schrodinger in the fourth quarter worth about $27,000. Bayforest Capital Ltd bought a new stake in Schrodinger in the second quarter worth about $30,000. ANTIPODES PARTNERS Ltd bought a new stake in Schrodinger in the first quarter worth about $37,000. Finally, State of Wyoming bought a new stake in Schrodinger in the second quarter worth about $39,000. Institutional investors own 79.05% of the company's stock.

About Schrodinger

Schrödinger, Inc, together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discovery. The Software segment is focused on licensing its software to transform molecular discovery for life sciences and materials science industries.