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

Key Points

• Schrodinger has been downgraded from a "hold" to a "sell" rating by analysts at Wall Street Zen, indicating a bearish outlook for the stock.
• The stock's target price has been significantly lowered by multiple analysts, with Morgan Stanley reducing it from $28.00 to $19.00, while Citigroup decreased theirs from $35.00 to $20.00.
• Despite posting better-than-expected earnings with revenue growth of 15.7% year-over-year, the company's negative margins and return on equity may concern investors.

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

Several other equities research analysts have also issued reports on SDGR. Barclays started coverage on Schrodinger in a research report on Thursday, August 14th. They set an "overweight" rating and a $25.00 price target on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Schrodinger in a research report on Saturday, September 27th. Morgan Stanley dropped their price target on Schrodinger from $28.00 to $19.00 and set an "equal weight" rating on the stock in a research report on Monday, August 18th. Citigroup lowered Schrodinger from a "buy" rating to a "neutral" rating and dropped their price target for the company from $35.00 to $20.00 in a research report on Friday, August 15th. Finally, The Goldman Sachs Group began coverage on Schrodinger in a research note on Monday. They set a "neutral" rating and a $19.00 price objective for the company. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $26.57.

Schrodinger Trading Down 4.0%

SDGR stock opened at $20.59 on Friday. The firm has a market cap of $1.52 billion, a P/E ratio of -8.30 and a beta of 1.74. Schrodinger has a 12-month low of $16.60 and a 12-month high of $28.47. The stock's 50 day simple moving average is $19.61 and its 200 day simple moving average is $21.39.

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 the consensus estimate of ($0.83) by $0.24. The business had revenue of $54.76 million for 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 company posted ($0.66) EPS. On average, research analysts forecast that Schrodinger will post -2.37 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Greenwood Capital Associates LLC boosted its stake in Schrodinger by 2.7% during the first quarter. Greenwood Capital Associates LLC now owns 23,139 shares of the company's stock valued at $457,000 after buying an additional 612 shares in the last quarter. PNC Financial Services Group Inc. boosted its stake in Schrodinger by 29.9% during the first quarter. PNC Financial Services Group Inc. now owns 2,956 shares of the company's stock valued at $58,000 after buying an additional 680 shares in the last quarter. Bank of Montreal Can boosted its stake in Schrodinger by 5.8% during the second quarter. Bank of Montreal Can now owns 15,941 shares of the company's stock valued at $321,000 after buying an additional 879 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in Schrodinger by 347.4% during the second quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock valued at $26,000 after buying an additional 997 shares in the last quarter. Finally, Tema Etfs LLC boosted its stake in Schrodinger by 6.3% during the second quarter. Tema Etfs LLC now owns 17,493 shares of the company's stock valued at $352,000 after buying an additional 1,036 shares in the last quarter. Institutional investors 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.

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