Schrodinger, Inc. (NASDAQ:SDGR) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst consensus: Nine brokerages give Schrodinger an average rating of "Hold" (1 sell, 4 hold, 4 buy) with a mean 1‑year price target of $20.50, while several firms have recently cut targets (UBS to $13, KeyCorp to $20).
• Insider selling: CEO Ramy Farid sold 43,000 shares at $12.33 under a Rule 10b5‑1 plan (an 11.5% reduction in his stake); insiders have sold 59,184 shares (~$741,556) in the last three months and collectively own 21% of the company.
• Mixed financials: Schrodinger reported quarterly EPS of $0.44 beating estimates and revenue of $87.24M, but remains unprofitable (net margin -40.4%, negative ROE) with a market cap of about $951M and a 1‑year trading range of $10.94–$27.63.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) has been given an average rating of "Hold" by the nine brokerages that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and four have given a buy recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $20.50.

Several research analysts recently commented on the stock. UBS Group cut their price target on shares of Schrodinger from $18.00 to $13.00 and set a "neutral" rating on the stock in a report on Tuesday, March 17th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Schrodinger in a research report on Friday, January 9th. TD Cowen reaffirmed a "buy" rating on shares of Schrodinger in a research report on Thursday, January 8th. KeyCorp lowered their price objective on shares of Schrodinger from $25.00 to $20.00 and set an "overweight" rating for the company in a research report on Wednesday, April 8th. Finally, Wall Street Zen raised shares of Schrodinger from a "sell" rating to a "hold" rating in a research report on Saturday, January 31st.

Insider Transactions at Schrodinger

In other Schrodinger news, CEO Ramy Farid sold 43,000 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $12.33, for a total value of $530,190.00. Following the completion of the sale, the chief executive officer owned 330,824 shares of the company's stock, valued at $4,079,059.92. This trade represents a 11.50% decrease in their ownership of the stock. The sale was disclosed in a legal 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. Insiders have sold a total of 59,184 shares of company stock valued at $741,556 over the last three months. 21.00% of the stock is owned by company insiders.

Institutional Trading of Schrodinger

Several large investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Schrodinger by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,055 shares of the company's stock worth $653,000 after buying an additional 1,412 shares in the last quarter. Cetera Investment Advisers grew its position in shares of Schrodinger by 75.2% during the second quarter. Cetera Investment Advisers now owns 29,973 shares of the company's stock worth $603,000 after buying an additional 12,868 shares in the last quarter. Norges Bank acquired a new stake in shares of Schrodinger during the second quarter worth approximately $311,000. Invesco Ltd. grew its position in shares of Schrodinger by 15.6% during the second quarter. Invesco Ltd. now owns 155,895 shares of the company's stock worth $3,137,000 after buying an additional 21,039 shares in the last quarter. Finally, First Trust Advisors LP acquired a new stake in shares of Schrodinger during the second quarter worth approximately $1,227,000. Institutional investors and hedge funds own 79.05% of the company's stock.

Schrodinger Stock Performance

NASDAQ SDGR opened at $12.88 on Wednesday. Schrodinger has a one year low of $10.94 and a one year high of $27.63. The company's 50 day moving average price is $11.95 and its 200 day moving average price is $15.87. The firm has a market capitalization of $950.80 million, a price-to-earnings ratio of -9.07 and a beta of 1.62.

Schrodinger (NASDAQ:SDGR - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of ($0.13) by $0.57. Schrodinger had a negative net margin of 40.37% and a negative return on equity of 29.47%. The firm had revenue of $87.24 million for the quarter, compared to analyst estimates of $83.66 million. During the same quarter last year, the firm posted ($0.24) earnings per share. Schrodinger's revenue for the quarter was up 4.7% compared to the same quarter last year. Sell-side analysts forecast that Schrodinger will post -1.25 EPS for the current fiscal year.

About Schrodinger

Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

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