Schrodinger (NASDAQ:SDGR) Sets New 1-Year Low - What's Next?

Key Points

• Schrodinger, Inc. (NASDAQ:SDGR) shares reached a new 12-month low, trading as low as $16.51 before recovering to $18.05. This is a significant drop from its previous close of $19.84.
• Despite the recent stock price decline, analysts maintain a Moderate Buy rating on Schrodinger, with an average price target of $31.20 and various target prices set between $25.00 and $28.00.
• Schrodinger reported a quarterly earnings per share (EPS) of ($0.59), exceeding expectations and showing a 15.7% year-over-year revenue increase to $54.76 million.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report)'s stock price reached a new 52-week low on Thursday . The stock traded as low as $16.51 and last traded at $18.05, with a volume of 353045 shares. The stock had previously closed at $19.84.

Analyst Ratings Changes

SDGR has been the topic of several recent analyst reports. KeyCorp lowered their price target on Schrodinger from $32.00 to $30.00 and set an "overweight" rating on the stock in a research report on Monday, July 14th. Citigroup downgraded Schrodinger from a "buy" rating to a "neutral" rating and reduced their target price for the stock from $35.00 to $20.00 in a research note on Friday. Morgan Stanley initiated coverage on Schrodinger in a research note on Thursday, July 3rd. They set an "equal weight" rating and a $28.00 target price for the company. Finally, Barclays initiated coverage on Schrodinger in a research note on Thursday. They set an "overweight" rating and a $25.00 target price for the company. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, Schrodinger has a consensus rating of "Moderate Buy" and a consensus target price of $29.33.

Schrodinger Trading Down 0.4%

The company has a 50 day moving average price of $21.14 and a 200 day moving average price of $22.33. The company has a market capitalization of $1.42 billion, a P/E ratio of -7.81 and a beta of 1.67.

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

Institutional Trading of Schrodinger

Several institutional investors have recently added to or reduced their stakes in SDGR. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Schrodinger by 169.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,357,532 shares of the company's stock valued at $86,018,000 after purchasing an additional 2,737,728 shares during the period. American Century Companies Inc. bought a new stake in Schrodinger in the 1st quarter valued at $19,787,000. Bank of America Corp DE boosted its stake in Schrodinger by 428.3% in the 2nd quarter. Bank of America Corp DE now owns 606,916 shares of the company's stock valued at $12,211,000 after purchasing an additional 492,032 shares during the period. Stephens Investment Management Group LLC boosted its stake in Schrodinger by 22.5% in the 1st quarter. Stephens Investment Management Group LLC now owns 1,969,941 shares of the company's stock valued at $38,887,000 after purchasing an additional 362,285 shares during the period. Finally, Millennium Management LLC boosted its stake in Schrodinger by 42.3% in the 4th quarter. Millennium Management LLC now owns 761,653 shares of the company's stock valued at $14,692,000 after purchasing an additional 226,536 shares during the period. 79.05% of the stock is currently owned by institutional investors.

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.