Schrodinger (NASDAQ:SDGR) Sets New 12-Month High - Still a Buy?

Key Points

• Schrödinger shares reached a new 52-week high of $23.40 and were last trading at $22.79, up 8.9% from the prior close.
• Analysts maintain a consensus “Hold” rating with a $20.50 price target, below the current share price; ratings include three Buys, three Holds and one Sell.
• The company beat quarterly expectations with $0.08 EPS versus a projected loss of $0.41 and revenue of $58.89 million, though it remains unprofitable and analysts expect a full-year loss.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) shares hit a new 52-week high on Tuesday . The company traded as high as $23.40 and last traded at $22.79, with a volume of 1314099 shares changing hands. The stock had previously closed at $20.75.

Analysts Set New Price Targets

SDGR has been the subject of a number of recent research reports. UBS Group assumed coverage on Schrodinger in a research report on Friday, August 14th. They set a "neutral" rating and a $19.00 price target for the company. Weiss Ratings raised 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 given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $20.50.

Schrodinger Trading Up 8.9%

The stock has a market capitalization of $1.67 billion, a P/E ratio of -30.59 and a beta of 1.69. The business has a 50-day moving average price of $17.70 and a two-hundred day moving average price of $14.80.

Schrodinger (NASDAQ:SDGR - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.08 EPS 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 company had revenue of $58.89 million during the quarter, compared to analysts' expectations of $47.19 million. During the same period in the previous year, the company earned ($0.65) EPS. The business's revenue for the quarter was up 7.5% compared to the same quarter last year. On average, sell-side analysts forecast that Schrodinger, Inc. will post -1.5 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Schrodinger

A number of institutional investors have recently added to or reduced their stakes in SDGR. BlackRock Inc. bought a new position in Schrodinger in the 2nd quarter valued at approximately $170,978,000. Rubric Capital Management LP boosted its position in Schrodinger by 43.8% during the first 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. grew its stake in Schrodinger by 13.2% during the first 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 during the period. Bank of New York Mellon Corp acquired a new stake in shares of Schrodinger during the 2nd quarter worth approximately $4,986,000. Finally, Tejara Capital Ltd acquired a new position in shares of Schrodinger during the 2nd quarter valued at $4,553,000. 79.05% of the stock is currently owned by institutional investors and hedge funds.

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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