Schrodinger (NASDAQ:SDGR) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Schrödinger shares surged 18.1% to $28.20 amid unusually high trading volume, with 2.66 million shares changing hands—roughly double the prior session.
• Analyst sentiment remains mixed, with three Buy, three Hold and one Sell rating; the consensus is Hold with an average price target of $20.50, well below the latest share price.
• The company beat quarterly earnings and revenue estimates, reporting $0.08 EPS and $58.89 million in revenue, but remains unprofitable with negative margins and analysts expecting a full-year loss.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) saw unusually-strong trading volume on Thursday . 2,657,428 shares were traded during mid-day trading, an increase of 100% from the previous session's volume of 1,331,540 shares.The stock last traded at $28.2010 and had previously closed at $23.93.

Analyst Upgrades and Downgrades

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

Schrodinger Stock Up 18.1%

The firm has a market capitalization of $2.09 billion, a price-to-earnings ratio of -38.35 and a beta of 1.69. The business has a 50-day moving average of $17.99 and a two-hundred day moving average of $14.96.

Schrodinger (NASDAQ:SDGR - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.08 EPS for the quarter, topping analysts' consensus estimates of ($0.41) by $0.49. Schrodinger had a negative return on equity of 16.37% and a negative net margin of 20.98%.The company had revenue of $58.89 million during the quarter, compared to the consensus estimate of $47.19 million. During the same quarter last year, the company earned ($0.65) EPS. The company's quarterly revenue was up 7.5% on a year-over-year basis. Equities analysts predict that Schrodinger, Inc. will post -1.5 EPS for the current fiscal year.

Institutional Trading of Schrodinger

Several large investors have recently made changes to their positions in SDGR. EverSource Wealth Advisors LLC increased its position in Schrodinger by 722.8% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,374 shares of the company's stock worth $25,000 after purchasing an additional 1,207 shares during the period. Hantz Financial Services Inc. raised its holdings in shares of Schrodinger by 5,025.8% during the fourth quarter. Hantz Financial Services Inc. now owns 1,589 shares of the company's stock worth $28,000 after acquiring an additional 1,558 shares during the period. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new stake in Schrodinger in the 4th quarter valued at $36,000. Purpose Unlimited Inc. acquired a new stake in shares of Schrodinger in the fourth quarter valued at approximately $47,000. Finally, Allworth Financial LP acquired a new stake in shares of Schrodinger in the second quarter valued at approximately $86,000. Institutional investors 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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