Schrodinger (NASDAQ:SDGR) Reaches New 12-Month High - Should You Buy?

Key Points

• Schrödinger shares reached a new 52-week high of $32.11, substantially above their 50-day and 200-day moving averages of $20.48 and $16.04, respectively.
• The company exceeded quarterly expectations, reporting EPS of $0.08 versus the consensus estimate of a $0.41 loss and revenue of $58.89 million, up 7.5% year over year. However, it remains unprofitable, with analysts forecasting a full-year loss of $1.50 per share.
• Despite institutional ownership of 79.05% and new purchases by BlackRock and other funds, analyst sentiment remains mixed: the average rating is “Hold” with a $20.80 price target, while insider Karen Akinsanya sold 31,599 shares under a pre-arranged trading plan.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) shares hit a new 52-week high during trading on Wednesday. The stock traded as high as $32.11 and last traded at $32.0760, with a volume of 1196601 shares changing hands. The stock had previously closed at $30.33.

Analyst Upgrades and Downgrades

A number of research firms have commented on SDGR. Wall Street Zen upgraded Schrodinger from a "strong sell" rating to a "hold" rating in a research note on Saturday, August 8th. UBS Group initiated coverage on shares of Schrodinger in a report on Friday, August 14th. They set a "neutral" rating and a $19.00 price objective on the stock. Finally, Weiss Ratings raised shares of Schrodinger from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, August 27th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Schrodinger currently has an average rating of "Hold" and an average price target of $20.80.

Schrodinger Stock Performance

The firm has a market cap of $2.35 billion, a price-to-earnings ratio of -43.05 and a beta of 1.69. The business's 50 day moving average price is $20.48 and its 200 day moving average price is $16.04.

Schrodinger (NASDAQ:SDGR - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $58.89 million for the quarter, compared to the consensus estimate of $47.19 million. During the same period in the prior year, the firm posted ($0.65) earnings per share. The firm's quarterly revenue was up 7.5% compared to the same quarter last year. Sell-side analysts anticipate that Schrodinger, Inc. will post -1.5 earnings per share for the current fiscal year.

Insider Transactions at Schrodinger

In other news, insider Karen Akinsanya sold 31,599 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $29.37, for a total transaction of $928,062.63. Following the completion of the transaction, the insider directly owned 69,956 shares of the company's stock, valued at $2,054,607.72. This represents a 31.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 10.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of SDGR. BlackRock Inc. purchased a new stake in shares of Schrodinger during the second quarter worth $170,978,000. Rubric Capital Management LP raised its holdings in Schrodinger by 43.8% in the 1st quarter. Rubric Capital Management LP now owns 6,000,000 shares of the company's stock valued at $68,160,000 after acquiring an additional 1,828,502 shares during the last quarter. Amova Asset Management Americas Inc. lifted its stake in Schrodinger by 13.2% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,190,837 shares of the company's stock worth $36,248,000 after purchasing an additional 371,167 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Schrodinger during the 2nd quarter worth approximately $4,986,000. Finally, Tejara Capital Ltd purchased a new stake in shares of Schrodinger in the second quarter valued at approximately $4,553,000. Institutional investors and hedge funds own 79.05% of the company's stock.

About Schrodinger

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.

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