Schrodinger (NASDAQ:SDGR) Shares Gap Down - Should You Sell?

Key Points

• Shares of Schrodinger (NASDAQ:SDGR) gapped down from $19.45 to $18.67 before opening, last trading at $18.91.
• Analysts have mixed ratings on the stock; KeyCorp has an "overweight" rating with a target price of $30, while Citigroup downgraded it to "neutral" with a price target of $20.
• In the most recent quarter, Schrodinger reported a larger-than-expected loss of ($0.59) EPS, but achieved revenue of $54.76 million, surpassing analyst estimates of $52.03 million.

Shares of Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $19.45, but opened at $18.67. Schrodinger shares last traded at $18.91, with a volume of 409,203 shares changing hands.

Wall Street Analyst Weigh In

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

Schrodinger Stock Down 2.5%

The firm's 50-day moving average is $21.24 and its 200-day moving average is $22.39. The company has a market capitalization of $1.39 billion, a PE ratio of -7.60 and a beta of 1.67.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SDGR. JPMorgan Chase & Co. boosted its position in Schrodinger by 2.3% during the fourth quarter. JPMorgan Chase & Co. now owns 125,479 shares of the company's stock valued at $2,420,000 after buying an additional 2,777 shares during the period. Franklin Resources Inc. boosted its position in Schrodinger by 13.7% during the fourth quarter. Franklin Resources Inc. now owns 20,051 shares of the company's stock valued at $387,000 after buying an additional 2,412 shares during the period. Envestnet Asset Management Inc. boosted its position in Schrodinger by 6.5% during the fourth quarter. Envestnet Asset Management Inc. now owns 185,754 shares of the company's stock valued at $3,583,000 after buying an additional 11,343 shares during the period. Raymond James Financial Inc. purchased a new stake in Schrodinger during the fourth quarter valued at about $325,000. Finally, XTX Topco Ltd purchased a new stake in Schrodinger during the fourth quarter valued at about $199,000. 79.05% of the stock is currently owned by hedge funds and other 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.

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