Schrodinger (NASDAQ:SDGR) Downgraded 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 analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

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

Schrodinger Stock Performance

SDGR traded down $0.25 during midday trading on Friday, hitting $19.51. The company had a trading volume of 703,990 shares, compared to its average volume of 1,391,400. The company has a market capitalization of $1.44 billion, a PE ratio of -7.87 and a beta of 1.79. Schrodinger has a twelve month low of $16.60 and a twelve month high of $28.47. The firm's 50-day simple moving average is $20.52 and its 200-day simple moving average is $21.89.

Schrodinger (NASDAQ:SDGR - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported ($0.59) earnings per share for the quarter, beating the consensus estimate of ($0.83) by $0.24. The firm had revenue of $54.76 million during the quarter, compared to analysts' expectations of $52.03 million. Schrodinger had a negative net margin of 76.22% and a negative return on equity of 45.70%. The company's quarterly revenue was up 15.7% compared to the same quarter last year. During the same quarter last year, the company posted ($0.66) EPS. As a group, sell-side analysts anticipate that Schrodinger will post -2.37 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SDGR. Raymond James Financial Inc. acquired a new position in Schrodinger during the fourth quarter valued at approximately $325,000. MetLife Investment Management LLC lifted its stake in Schrodinger by 5.6% in the fourth quarter. MetLife Investment Management LLC now owns 34,554 shares of the company's stock valued at $667,000 after buying an additional 1,825 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Schrodinger by 8.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 42,009 shares of the company's stock valued at $811,000 after buying an additional 3,376 shares in the last quarter. Northern Trust Corp lifted its stake in Schrodinger by 11.3% in the fourth quarter. Northern Trust Corp now owns 602,618 shares of the company's stock valued at $11,625,000 after buying an additional 60,987 shares in the last quarter. Finally, BNP Paribas Financial Markets bought a new position in Schrodinger in the fourth quarter valued at approximately $330,000. Institutional investors and hedge funds own 79.05% of the company's stock.

About Schrodinger

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.