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

Key Points

• Schrödinger shares reached a new 52-week high, trading as high as $33.09 and closing around $32.60, up 7.6% on the session. The stock’s market capitalization is approximately $2.41 billion.
• Analysts maintain a mixed outlook, with a consensus rating of “Hold” and an average price target of $20.80—well below the recent trading price.
• The company beat quarterly expectations, reporting $0.08 in earnings per share versus a projected $0.41 loss and revenue of $58.89 million, up 7.5% year over year. Institutional investors own about 79% of the stock, while an insider sold shares worth approximately $928,000 under a pre-arranged trading plan.

Shares of Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $33.09 and last traded at $32.60, with a volume of 4612097 shares traded. The stock had previously closed at $30.31.

Wall Street Analysts Forecast Growth

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

Schrodinger Trading Up 7.6%

The stock has a market capitalization of $2.41 billion, a PE ratio of -44.05 and a beta of 1.62. The firm has a 50 day moving average price of $21.76 and a 200 day moving average price of $16.56.

Schrodinger (NASDAQ:SDGR - Get Free Report) last released 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 return on equity of 16.37% and a negative net margin of 20.98%.The company had revenue of $58.89 million for the quarter, compared to the consensus estimate of $47.19 million. During the same period in the previous year, the business earned ($0.65) earnings per share. Schrodinger's quarterly revenue was up 7.5% compared to the same quarter last year. On average, equities research analysts expect that Schrodinger, Inc. will post -1.5 EPS for the current year.

Insider Transactions at Schrodinger

In related news, insider Karen Akinsanya sold 31,599 shares of the stock in a transaction that occurred on 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 of the company's stock, valued at approximately $2,054,607.72. This represents a 31.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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.

Hedge Funds Weigh In On Schrodinger

A number of hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of Schrodinger during the second quarter worth about $170,978,000. Rubric Capital Management LP grew its holdings in Schrodinger by 43.8% during the 1st quarter. Rubric Capital Management LP now owns 6,000,000 shares of the company's stock valued at $68,160,000 after buying an additional 1,828,502 shares in the last quarter. Amova Asset Management Americas Inc. grew its holdings in Schrodinger by 6.8% during the 4th quarter. Amova Asset Management Americas Inc. now owns 2,819,670 shares of the company's stock valued at $50,359,000 after buying an additional 180,735 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Schrodinger during the second quarter valued at approximately $4,986,000. Finally, Tejara Capital Ltd bought a new stake in shares of Schrodinger during the second quarter valued at approximately $4,553,000. 79.05% of the stock is currently owned by institutional investors.

About Schrodinger

Schrödinger, Inc is a technology company that develops computational software for pharmaceutical and materials research. Its platform uses physics-based modeling, machine learning and other computational methods to help scientists design and optimize molecules, evaluate potential drug candidates and investigate material properties.

The company's software offerings include molecular modeling, simulation, predictive modeling and collaborative research tools, such as Maestro, Desmond, Jaguar, FEP+ and LiveDesign.

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