Schrodinger (NASDAQ:SDGR) Stock Price Down 5.9% - Should You Sell?

Key Points

• Schrodinger's stock price fell by 5.9% on Wednesday, trading at $18.32, with a significant decrease in trading volume compared to the average.
• Analysts have reduced their price targets on Schrodinger, with Citigroup downgrading the stock from a "buy" to a "neutral" rating, setting a new target of $20.00.
• Despite recent quarterly earnings beating expectations, Schrodinger has a negative return on equity of 45.70% and a consensus target price of $27.83 among analysts.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report)'s stock price was down 5.9% on Wednesday . The company traded as low as $18.32 and last traded at $18.32. Approximately 598,203 shares changed hands during trading, a decline of 48% from the average daily volume of 1,146,984 shares. The stock had previously closed at $19.46.

Analyst Ratings Changes

Several analysts recently weighed in on the company. KeyCorp dropped their price objective on Schrodinger from $32.00 to $30.00 and set an "overweight" rating for the company in a research report on Monday, July 14th. Citigroup downgraded Schrodinger from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $35.00 to $20.00 in a research report on Friday, August 15th. Wall Street Zen downgraded Schrodinger from a "hold" rating to a "sell" rating in a research report on Saturday, August 30th. Barclays assumed coverage on Schrodinger in a research report on Thursday, August 14th. They set an "overweight" rating and a $25.00 price objective for the company. Finally, Morgan Stanley dropped their price objective on Schrodinger from $28.00 to $19.00 and set an "equal weight" rating for the company in a research report on Monday, August 18th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $27.83.

Schrodinger Stock Down 6.7%

The company has a market cap of $1.34 billion, a price-to-earnings ratio of -7.32 and a beta of 1.79. The firm has a 50 day moving average price of $20.36 and a two-hundred day moving average price of $21.68.

Schrodinger (NASDAQ:SDGR - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported ($0.59) earnings per share for the quarter, beating the consensus estimate of ($0.83) by $0.24. The company had revenue of $54.76 million during the quarter, compared to analysts' expectations 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 quarterly revenue was up 15.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.66) earnings per share. On average, equities analysts expect that Schrodinger, Inc. will post -2.37 earnings per share for the current year.

Institutional Investors Weigh In On Schrodinger

Several institutional investors and hedge funds have recently made changes to their positions in SDGR. Northern Trust Corp boosted its position in shares of Schrodinger by 11.3% during the 4th quarter. Northern Trust Corp now owns 602,618 shares of the company's stock valued at $11,625,000 after purchasing an additional 60,987 shares in the last quarter. BNP Paribas Financial Markets bought a new position in Schrodinger in the fourth quarter worth approximately $330,000. Captrust Financial Advisors bought a new position in Schrodinger in the fourth quarter worth approximately $240,000. Deutsche Bank AG boosted its holdings in Schrodinger by 8.2% in the fourth quarter. Deutsche Bank AG now owns 233,026 shares of the company's stock worth $4,495,000 after acquiring an additional 17,700 shares in the last quarter. Finally, Ensign Peak Advisors Inc boosted its holdings in Schrodinger by 7.3% in the fourth quarter. Ensign Peak Advisors Inc now owns 25,643 shares of the company's stock worth $495,000 after acquiring an additional 1,750 shares in the last quarter. Institutional investors own 79.05% of the company's stock.

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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