Schrodinger (NASDAQ:SDGR) Lowered to Sell Rating by Wall Street Zen

Key Points

• Schrodinger (NASDAQ:SDGR) has been downgraded from a "hold" to a "sell" rating by analysts at Wall Street Zen, reflecting a bearish outlook for the stock.
• Despite recent downgrades, the current consensus rating for Schrodinger remains a "Moderate Buy" with an average price target of $27.83.
• In its latest earnings report, Schrodinger posted a 15.7% increase in revenue year-over-year, totaling $54.76 million, while beating EPS expectations by $0.24.

Schrodinger (NASDAQ:SDGR - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Several other research analysts have also weighed in on the company. Morgan Stanley lowered their price objective on Schrodinger from $28.00 to $19.00 and set an "equal weight" rating for the company in a research report on Monday, August 18th. KeyCorp lowered their price objective on Schrodinger from $32.00 to $30.00 and set an "overweight" rating for the company in a research report on Monday, July 14th. Barclays initiated coverage on Schrodinger in a research report on Thursday, August 14th. They issued an "overweight" rating and a $25.00 price objective for the company. Finally, Citigroup lowered Schrodinger from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $35.00 to $20.00 in a research report on Friday, August 15th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Schrodinger has a consensus rating of "Moderate Buy" and an average target price of $27.83.

Schrodinger Stock Down 1.7%

Shares of Schrodinger stock traded down $0.32 during mid-day trading on Friday, reaching $18.97. 970,327 shares of the stock traded hands, compared to its average volume of 1,287,485. The business has a 50-day moving average of $20.43 and a 200 day moving average of $21.82. The stock has a market capitalization of $1.40 billion, a PE ratio of -7.65 and a beta of 1.79. Schrodinger has a fifty-two week low of $16.60 and a fifty-two week high of $28.47.

Schrodinger (NASDAQ:SDGR - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.59) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.83) by $0.24. The business had revenue of $54.76 million during the quarter, compared to analyst estimates of $52.03 million. Schrodinger had a negative return on equity of 45.70% and a negative net margin of 76.22%.The business's revenue was up 15.7% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.66) earnings per share. On average, equities research analysts expect that Schrodinger will post -2.37 EPS for the current fiscal year.

Institutional Trading of Schrodinger

Hedge funds and other institutional investors have recently bought and sold shares of the business. Two Sigma Advisers LP purchased a new position in shares of Schrodinger during the fourth quarter worth about $473,000. Allspring Global Investments Holdings LLC boosted its holdings in Schrodinger by 30.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 174,371 shares of the company's stock worth $3,442,000 after buying an additional 40,568 shares in the last quarter. GAMMA Investing LLC increased its stake in Schrodinger by 118.5% in the 1st quarter. GAMMA Investing LLC now owns 6,109 shares of the company's stock valued at $121,000 after purchasing an additional 3,313 shares in the last quarter. BNP Paribas Financial Markets purchased a new position in shares of Schrodinger in the fourth quarter valued at $330,000. Finally, Two Sigma Investments LP acquired a new stake in Schrodinger in the 4th quarter valued at about $1,939,000. 79.05% of the stock is currently owned by institutional investors and hedge funds.

Schrodinger Company Profile

Schrödinger, Inc, together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discovery. The Software segment is focused on licensing its software to transform molecular discovery for life sciences and materials science industries.