Schrodinger (NASDAQ:SDGR) Issues Earnings Results

Key Points

• Earnings miss despite revenue beat: Schrodinger reported Q EPS of $(0.81), missing consensus by $0.25, while revenue topped estimates at $58.59 million versus $47.57 million; the company remains unprofitable with a negative ROE (29.47%) and net margin (-40.37%).
• Market reaction and insider/analyst activity: Shares dipped to $12.87 (market cap ≈ $950M) after the report; CEO Ramy Farid sold 43,000 shares under a pre-arranged 10b5-1 plan and insiders own 21% of stock, while analysts are mixed with a consensus "Hold" and an average target of $20.50 (UBS cut its target to $13).

Schrodinger (NASDAQ:SDGR - Get Free Report) released its quarterly earnings data on Tuesday. The company reported ($0.81) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.25), FiscalAI reports. Schrodinger had a negative return on equity of 29.47% and a negative net margin of 40.37%.The firm had revenue of $58.59 million during the quarter, compared to the consensus estimate of $47.57 million.

Schrodinger Trading Down 0.2%

Shares of NASDAQ SDGR traded down $0.03 during trading hours on Tuesday, hitting $12.87. 1,496,343 shares of the company traded hands, compared to its average volume of 1,379,425. The stock has a market capitalization of $950.13 million, a price-to-earnings ratio of -9.06 and a beta of 1.57. The company's 50 day moving average price is $11.99 and its 200 day moving average price is $15.46. Schrodinger has a 12 month low of $10.94 and a 12 month high of $27.63.

Insider Buying and Selling at Schrodinger

In other news, CEO Ramy Farid sold 43,000 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $12.33, for a total transaction of $530,190.00. Following the transaction, the chief executive officer owned 330,824 shares of the company's stock, valued at approximately $4,079,059.92. The trade was a 11.50% decrease in their position. The transaction 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. Over the last 90 days, insiders sold 59,184 shares of company stock worth $741,556. Insiders own 21.00% of the company's stock.

Hedge Funds Weigh In On Schrodinger

Large investors have recently modified their holdings of the stock. Los Angeles Capital Management LLC bought a new position in shares of Schrodinger during the 4th quarter valued at approximately $26,000. State of Wyoming bought a new position in shares of Schrodinger during the 2nd quarter valued at approximately $39,000. Quarry LP increased its position in shares of Schrodinger by 73.6% during the 3rd quarter. Quarry LP now owns 2,401 shares of the company's stock valued at $48,000 after purchasing an additional 1,018 shares during the last quarter. Canada Pension Plan Investment Board bought a new position in shares of Schrodinger during the 2nd quarter valued at approximately $143,000. Finally, Entropy Technologies LP bought a new position in shares of Schrodinger during the 3rd quarter valued at approximately $233,000. Institutional investors own 79.05% of the company's stock.

Analyst Ratings Changes

SDGR has been the topic of a number of research reports. Wall Street Zen raised Schrodinger from a "sell" rating to a "hold" rating in a research note on Saturday, January 31st. TD Cowen reaffirmed a "buy" rating on shares of Schrodinger in a research note on Thursday, January 8th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Schrodinger in a research note on Friday, January 9th. UBS Group reduced their price objective on Schrodinger from $18.00 to $13.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 17th. Finally, KeyCorp reduced their price objective on Schrodinger from $25.00 to $20.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 8th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $20.50.

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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