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

Key Points

• Wall Street Zen downgraded Schrödinger (NASDAQ:SDGR) from “hold” to “strong sell”, adding to a mixed analyst picture that still shows a consensus Hold rating and an average price target of $20.50.
• Schrödinger shares fell 1.1% and opened at $13.13, well below the consensus target and near the company’s 12-month low of $10.94.
• The company’s latest earnings missed EPS expectations, reporting ($0.81) per share versus an expected ($0.56), even though revenue of $58.59 million topped estimates; CEO Ramy Farid also sold 43,000 shares in April.

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

SDGR has been the topic of a number of other research reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Schrodinger in a research report on Friday, January 9th. KeyCorp dropped their target price on shares of Schrodinger from $25.00 to $20.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 8th. Finally, UBS Group dropped their target price on shares of Schrodinger from $18.00 to $13.00 and set a "neutral" rating on the stock in a research report on Tuesday, March 17th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $20.50.

Schrodinger Stock Down 1.1%

Schrodinger stock opened at $13.13 on Friday. Schrodinger has a 12-month low of $10.94 and a 12-month high of $27.63. The firm's fifty day moving average is $12.09 and its 200 day moving average is $15.31. The company has a market capitalization of $969.26 million, a PE ratio of -9.31 and a beta of 1.57.

Schrodinger (NASDAQ:SDGR - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported ($0.81) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.25). Schrodinger had a negative net margin of 40.61% and a negative return on equity of 30.85%. The company had revenue of $58.59 million for the quarter, compared to analyst estimates of $47.57 million. During the same quarter in the previous year, the firm earned ($0.82) EPS. The firm's revenue was down 1.6% on a year-over-year basis. Sell-side analysts expect that Schrodinger will post -1.26 EPS for the current fiscal year.

Insider Buying and Selling

In other Schrodinger news, CEO Ramy Farid sold 43,000 shares of the business's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $12.33, for a total transaction of $530,190.00. Following the completion of the sale, the chief executive officer owned 330,824 shares in the company, valued at approximately $4,079,059.92. The trade was a 11.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 59,184 shares of company stock worth $741,556. Insiders own 21.00% of the company's stock.

Institutional Trading of Schrodinger

Hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC increased its stake in Schrodinger by 722.8% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,374 shares of the company's stock valued at $25,000 after purchasing an additional 1,207 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in Schrodinger during the 4th quarter valued at $26,000. Hantz Financial Services Inc. increased its stake in Schrodinger by 5,025.8% during the 4th quarter. Hantz Financial Services Inc. now owns 1,589 shares of the company's stock valued at $28,000 after purchasing an additional 1,558 shares in the last quarter. State of Wyoming bought a new stake in Schrodinger during the 2nd quarter valued at $39,000. Finally, Aster Capital Management DIFC Ltd increased its stake in Schrodinger by 212.4% during the 3rd quarter. Aster Capital Management DIFC Ltd now owns 1,943 shares of the company's stock valued at $39,000 after purchasing an additional 1,321 shares in the last quarter. Institutional investors own 79.05% of the company's stock.

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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