Schrodinger (NASDAQ:SDGR) Trading 9.7% Higher - Time to Buy?

Key Points

• Schrödinger shares rose 9.7% to approximately $20.87, above the company’s 50-day and 200-day moving averages, on trading volume below its average.
• Analyst sentiment remains mixed, with three Buy, three Hold and one Sell rating; the consensus is Hold with a $20.50 price target, near the current share price.
• The company exceeded quarterly expectations, reporting $0.08 in EPS versus a projected $0.41 loss and $58.89 million in revenue, up 7.5% year over year. However, it remains unprofitable, with a negative net margin and analysts expecting a full-year loss.

Shares of Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) traded up 9.7% during mid-day trading on Monday . The stock traded as high as $20.77 and last traded at $20.8650. Approximately 965,092 shares were traded during mid-day trading, a decline of 26% from the average session volume of 1,299,966 shares. The stock had previously closed at $19.02.

Wall Street Analysts Forecast Growth

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

Schrodinger Price Performance

The company has a market capitalization of $1.52 billion, a PE ratio of -27.95 and a beta of 1.69. The stock has a 50-day simple moving average of $17.62 and a 200 day simple moving average of $14.73.

Schrodinger (NASDAQ:SDGR - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share 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 analysts' expectations of $47.19 million. During the same period in the previous year, the firm posted ($0.65) earnings per share. The business's revenue for the quarter was up 7.5% compared to the same quarter last year. As a group, research analysts predict that Schrodinger, Inc. will post -1.5 EPS for the current fiscal year.

Hedge Funds Weigh In On Schrodinger

Several large investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in Schrodinger in the 2nd quarter valued at about $170,978,000. Rubric Capital Management LP boosted its position in shares of Schrodinger by 43.8% in the first quarter. Rubric Capital Management LP now owns 6,000,000 shares of the company's stock worth $68,160,000 after acquiring an additional 1,828,502 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Schrodinger by 12.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,717,890 shares of the company's stock worth $66,476,000 after acquiring an additional 414,231 shares during the last quarter. Amova Asset Management Americas Inc. grew its holdings in Schrodinger by 13.2% in the first quarter. Amova Asset Management Americas Inc. now owns 3,190,837 shares of the company's stock valued at $36,248,000 after purchasing an additional 371,167 shares during the period. Finally, Lazard Asset Management LLC increased its position in Schrodinger by 65.3% during the third quarter. Lazard Asset Management LLC now owns 2,346,441 shares of the company's stock worth $47,070,000 after purchasing an additional 927,234 shares during the last quarter. 79.05% of the stock is currently owned by hedge funds and other institutional investors.

Schrodinger Company Profile

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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