Schrodinger (NASDAQ:SDGR) Sets New 1-Year High - Time to Buy?

Key Points

• Schrödinger shares reached a new 52-week high of $33.78, after previously closing at $33.39.
• Analyst views are mixed: the consensus rating is Hold, with an average price target of $26.67—below the recent share price.
• Latest quarterly results beat estimates: the company reported a smaller-than-expected loss of $0.50 per share and revenue of $64.49 million, up 18.7% year over year.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday. The company traded as high as $33.78 and last traded at $32.9420, with a volume of 309,283 shares changing hands. The stock had previously closed at $33.39.

Analyst Ratings Changes

A number of brokerages have recently issued reports on SDGR. Weiss Ratings upgraded Schrodinger from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, August 27th. TD Cowen boosted their price target on shares of Schrodinger from $31.00 to $36.00 and gave the stock a "buy" rating in a report on Thursday, November 5th. UBS Group boosted their price target on shares of Schrodinger from $19.00 to $21.00 and gave the stock a "neutral" rating in a report on Tuesday, October 20th. BMO Capital Markets upped their price objective on shares of Schrodinger from $24.00 to $30.00 and gave the stock an "outperform" rating in a research report on Monday, October 12th. Finally, Zacks Research downgraded shares of Schrodinger from a "strong-buy" rating to a "hold" rating in a report on Tuesday, November 3rd. Four 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's stock. Based on data from MarketBeat.com, Schrodinger currently has a consensus rating of "Hold" and an average price target of $26.67.

Schrodinger Price Performance

The business has a fifty day simple moving average of $26.07 and a 200 day simple moving average of $17.16. The firm has a market cap of $2.35 billion, a price-to-earnings ratio of -40.59 and a beta of 1.69.

Schrodinger (NASDAQ:SDGR - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The company reported ($0.50) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.67) by $0.17. Schrodinger had a negative return on equity of 17.66% and a negative net margin of 22.02%. The firm had revenue of $64.49 million for the quarter, compared to analyst estimates of $47.73 million. During the same period in the previous year, the company posted ($0.45) earnings per share. The business's revenue was up 18.7% on a year-over-year basis. On average, research analysts anticipate that Schrodinger, Inc. will post -1.39 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Karen Akinsanya sold 31,599 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $29.37, for a total value of $928,062.63. Following the completion of the sale, the insider directly owned 69,956 shares in the company, valued at $2,054,607.72. This represents a 31.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.10% of the stock is owned by insiders.

Institutional Trading of Schrodinger

Several large investors have recently bought and sold shares of the business. Root Financial Partners LLC purchased a new position in Schrodinger in the 3rd quarter worth approximately $50,000. Sterling Capital Management LLC increased its holdings in shares of Schrodinger by 843.8% in the third quarter. Sterling Capital Management LLC now owns 1,916 shares of the company's stock valued at $59,000 after purchasing an additional 1,713 shares during the last quarter. Hantz Financial Services Inc. increased its holdings in shares of Schrodinger by 13.1% in the third quarter. Hantz Financial Services Inc. now owns 3,366 shares of the company's stock valued at $105,000 after purchasing an additional 390 shares during the last quarter. Fulcrum Asset Management LLP increased its holdings in shares of Schrodinger by 1,509.3% in the third quarter. Fulcrum Asset Management LLP now owns 3,476 shares of the company's stock valued at $105,000 after purchasing an additional 3,260 shares during the last quarter. Finally, Allworth Financial LP purchased a new position in Schrodinger during the second quarter worth approximately $86,000. Hedge funds and other institutional investors own 79.05% of the company's stock.

About Schrodinger

Schrödinger, Inc. develops computational software used to support drug discovery and materials research. Its platform applies physics-based modeling, computational chemistry and machine learning to help researchers analyze molecular properties and identify promising candidates. The company's tools are used by pharmaceutical and biotechnology companies, academic institutions and other research organizations. Alongside software sales and subscriptions, Schrödinger works with partners on drug discovery programs and advances a portfolio of its own therapeutic candidates.

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