Morgan Stanley Cuts Schrodinger (NASDAQ:SDGR) Price Target to $19.00

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 price target reduced by research analysts at Morgan Stanley from $28.00 to $19.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price suggests a potential downside of 1.81% from the stock's current price.

SDGR has been the topic of a number of other reports. Barclays initiated coverage on shares of Schrodinger in a research note on Thursday. They issued an "overweight" rating and a $25.00 price target on the stock. Citigroup downgraded shares of Schrodinger from a "buy" rating to a "neutral" rating and reduced their price target for the company from $35.00 to $20.00 in a research report on Friday. Finally, KeyCorp lowered their price target on shares of Schrodinger from $32.00 to $30.00 and set an "overweight" rating on the stock in a research note on Monday, July 14th. Two research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $27.83.

Schrodinger Stock Performance

NASDAQ:SDGR traded down $0.03 during midday trading on Monday, reaching $19.35. 166,059 shares of the stock traded hands, compared to its average volume of 1,167,090. The business has a 50-day moving average of $21.14 and a two-hundred day moving average of $22.30. The stock has a market capitalization of $1.42 billion, a PE ratio of -7.79 and a beta of 1.67. Schrodinger has a 12-month low of $16.60 and a 12-month high of $28.47.

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

Institutional Investors Weigh In On Schrodinger

A number of hedge funds and other institutional investors have recently modified their holdings of SDGR. Greenwood Capital Associates LLC boosted its position in Schrodinger by 2.7% during the first quarter. Greenwood Capital Associates LLC now owns 23,139 shares of the company's stock worth $457,000 after purchasing an additional 612 shares during the period. United Advisor Group LLC increased its stake in shares of Schrodinger by 3.3% in the fourth quarter. United Advisor Group LLC now owns 19,769 shares of the company's stock valued at $381,000 after buying an additional 634 shares in the last quarter. PNC Financial Services Group Inc. increased its position in Schrodinger by 29.9% in the first quarter. PNC Financial Services Group Inc. now owns 2,956 shares of the company's stock worth $58,000 after purchasing an additional 680 shares during the period. Bank of Montreal Can grew its position in shares of Schrodinger by 5.8% during the 2nd quarter. Bank of Montreal Can now owns 15,941 shares of the company's stock worth $321,000 after buying an additional 879 shares during the period. Finally, Farther Finance Advisors LLC lifted its holdings in shares of Schrodinger by 347.4% during the 2nd quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock valued at $26,000 after purchasing an additional 997 shares in the last quarter. 79.05% of the stock is currently owned by institutional investors.

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.

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