Schrodinger (NASDAQ:SDGR) Shares Up 11.3% - Still a Buy?

Key Points

• Schrodinger's shares increased by 11.3% on Monday, reaching a last traded price of $21.49, despite a drop in trading volume.
• Brokerage analysts have mixed views, with Barclays setting a target price of $25.00 while Citigroup downgraded it to $20.00, reflecting varied confidence in the company.
• Insider trading activity showed a notable sale by Margaret Dugan, who sold 1,395 shares at an average price of $21.07, reducing her ownership stake by 5.37%.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) shot up 11.3% during trading on Monday . The stock traded as high as $21.50 and last traded at $21.49. 882,623 shares were traded during trading, a decline of 23% from the average session volume of 1,148,217 shares. The stock had previously closed at $19.31.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SDGR. Barclays initiated coverage on shares of Schrodinger in a research note on Thursday, August 14th. They issued an "overweight" rating and a $25.00 target price on the stock. Citigroup downgraded shares of Schrodinger from a "buy" rating to a "neutral" rating and decreased their price objective for the stock from $35.00 to $20.00 in a research note on Friday, August 15th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Schrodinger in a report on Tuesday, October 14th. Wall Street Zen cut Schrodinger from a "hold" rating to a "sell" rating in a report on Saturday, October 4th. Finally, KeyCorp cut their price objective on Schrodinger from $30.00 to $28.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 8th. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Schrodinger has an average rating of "Hold" and an average target price of $26.29.

Schrodinger Trading Up 13.8%

The stock has a 50-day simple moving average of $19.60 and a two-hundred day simple moving average of $21.36. The firm has a market capitalization of $1.62 billion, a P/E ratio of -8.86 and a beta of 1.74.

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, topping analysts' consensus estimates of ($0.83) by $0.24. The business had revenue of $54.76 million for 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 business's revenue was up 15.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.66) EPS. As a group, research analysts expect that Schrodinger, Inc. will post -2.37 EPS for the current year.

Insider Activity

In related news, insider Margaret Dugan sold 1,395 shares of Schrodinger stock in a transaction that occurred on Thursday, October 16th. The shares were sold at an average price of $21.07, for a total transaction of $29,392.65. Following the transaction, the insider directly owned 24,574 shares of the company's stock, valued at $517,774.18. This trade represents a 5.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 21.00% of the company's stock.

Hedge Funds Weigh In On Schrodinger

A number of large investors have recently added to or reduced their stakes in SDGR. Farther Finance Advisors LLC grew its position in shares of Schrodinger by 347.4% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock worth $26,000 after buying an additional 997 shares during the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Schrodinger in the 2nd quarter worth $30,000. ANTIPODES PARTNERS Ltd purchased a new position in Schrodinger during the 1st quarter worth $37,000. State of Wyoming acquired a new position in Schrodinger during the 2nd quarter valued at about $39,000. Finally, PNC Financial Services Group Inc. raised its stake in Schrodinger by 29.9% in 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 during the last quarter. 79.05% of the stock is currently owned by institutional investors.

Schrodinger Company Profile

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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