Schrodinger (NASDAQ:SDGR) Stock Price Down 7.4% - Here's What Happened

Key Points

• Schrödinger shares fell 7.4% to about $23.59 in Friday midday trading, while volume was 79% below the average.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $25.50; recent targets range from $19 to $32.
• The company exceeded quarterly expectations, reporting $0.08 EPS versus a $0.41 loss estimate and $58.89 million in revenue, up 7.5% year over year, although it remains unprofitable.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) traded down 7.4% during mid-day trading on Friday. The company traded as low as $24.18 and last traded at $23.5930. 316,489 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 1,531,088 shares. The stock had previously closed at $25.48.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on SDGR shares. Wall Street Zen upgraded shares of Schrodinger from a "strong sell" rating to a "hold" rating in a research note on Saturday, August 8th. BMO Capital Markets upped their target price on Schrodinger from $24.00 to $30.00 and gave the company an "outperform" rating in a research report on Monday. Weiss Ratings raised Schrodinger from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, August 27th. UBS Group initiated coverage on Schrodinger in a research note on Friday, August 14th. They issued a "neutral" rating and a $19.00 target price for the company. Finally, KeyCorp lifted their price target on Schrodinger from $20.00 to $32.00 and gave the stock an "overweight" rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Schrodinger presently has an average rating of "Moderate Buy" and an average price target of $25.50.

Schrodinger Price Performance

The company's fifty day moving average is $23.48 and its 200-day moving average is $17.40. The stock has a market cap of $1.68 billion, a PE ratio of -30.81 and a beta of 1.62.

Schrodinger (NASDAQ:SDGR - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, beating 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 company had revenue of $58.89 million during the quarter, compared to the consensus estimate of $47.19 million. During the same period in the previous year, the firm posted ($0.65) earnings per share. The firm's quarterly revenue was up 7.5% on a year-over-year basis. Analysts expect that Schrodinger, Inc. will post -1.50 EPS for the current year.

Insider Activity at Schrodinger

In other news, insider Karen Akinsanya sold 31,599 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $29.37, for a total value of $928,062.63. Following the sale, the insider 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 through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Purpose Unlimited Inc. acquired a new stake in shares of Schrodinger during the 4th quarter worth approximately $47,000. Allworth Financial LP acquired a new position in shares of Schrodinger in the 2nd quarter valued at $86,000. Integrated Wealth Concepts LLC acquired a new position in shares of Schrodinger in the 2nd quarter valued at $102,000. PNC Financial Services Group Inc. boosted its holdings in Schrodinger by 1,037.1% during the first quarter. PNC Financial Services Group Inc. now owns 7,778 shares of the company's stock worth $88,000 after buying an additional 7,094 shares in the last quarter. Finally, NorthCrest Asset Manangement LLC acquired a new stake in Schrodinger during the third quarter valued at $268,000. 79.05% of the stock is owned by institutional investors and hedge funds.

Schrodinger Company Profile

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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