Traders Buy High Volume of Schrodinger Call Options (NASDAQ:SDGR)

Key Points

• Schrödinger call-option activity surged: Investors bought 4,268 call options, roughly 412% above the typical volume of 834 contracts.
• The stock jumped to $27.86 on heavy trading volume and is trading near its 52-week high of $28.63, well above its 50-day and 200-day moving averages.
• Recent earnings beat expectations, with $0.08 adjusted EPS and $58.89 million in revenue, but analysts maintain a consensus “Hold” rating with a $20.50 price target; institutional investors own 79.05% of shares.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) was the target of unusually large options trading on Thursday. Stock investors purchased 4,268 call options on the company. This represents an increase of approximately 412% compared to the typical volume of 834 call options.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Integrated Wealth Concepts LLC bought a new stake in shares of Schrodinger in the second quarter worth $102,000. Squarepoint Ops LLC boosted its stake in Schrodinger by 290.4% during the 2nd quarter. Squarepoint Ops LLC now owns 209,123 shares of the company's stock valued at $3,398,000 after acquiring an additional 155,556 shares during the last quarter. Allworth Financial LP grew its holdings in Schrodinger by 252.3% during the 2nd quarter. Allworth Financial LP now owns 5,270 shares of the company's stock worth $86,000 after acquiring an additional 3,774 shares in the last quarter. Corient Private Wealth LP acquired a new position in Schrodinger during the 2nd quarter worth $303,000. Finally, Beacon Pointe Advisors LLC bought a new stake in shares of Schrodinger in the 2nd quarter worth about $839,000. Institutional investors and hedge funds own 79.05% of the company's stock.

Schrodinger Price Performance

NASDAQ SDGR traded up $3.93 on Thursday, reaching $27.86. The company had a trading volume of 2,833,152 shares, compared to its average volume of 1,336,640. The firm has a market capitalization of $2.06 billion, a PE ratio of -37.62 and a beta of 1.69. Schrodinger has a 1 year low of $10.94 and a 1 year high of $28.63. The firm has a 50-day moving average of $17.99 and a 200-day moving average of $14.96.

Schrodinger (NASDAQ:SDGR - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share for the quarter, beating the consensus estimate of ($0.41) by $0.49. Schrodinger had a negative net margin of 20.98% and a negative return on equity of 16.37%. The business had revenue of $58.89 million during the quarter, compared to the consensus estimate of $47.19 million. During the same period in the prior year, the firm earned ($0.65) earnings per share. The business's quarterly revenue was up 7.5% compared to the same quarter last year. As a group, sell-side analysts expect that Schrodinger will post -1.5 EPS for the current fiscal year.

Analyst Ratings Changes

SDGR has been the topic of a number of recent research reports. Wall Street Zen raised shares of Schrodinger from a "strong sell" rating to a "hold" rating in a research report on Saturday, August 8th. UBS Group initiated coverage on shares of Schrodinger in a research note on Friday, August 14th. They issued a "neutral" rating and a $19.00 target price on the stock. Finally, Weiss Ratings upgraded shares of Schrodinger from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, August 27th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $20.50.

Schrodinger Company Profile

Schrödinger, Inc develops computational software designed to accelerate drug discovery and materials science research. Its platform uses physics-based modeling, machine learning and related computational methods to help scientists analyze molecular structures, predict interactions and identify potential compounds for further development.

The company's software products support a range of research activities, including molecular modeling, virtual screening, structure-based drug design, free-energy calculations and collaborative data management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.