Schrodinger (NASDAQ:SDGR) Trading Down 5.9% - What's Next?

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.

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

Wall Street Analysts Forecast Growth

SDGR has been the topic of several research analyst reports. Wall Street Zen cut Schrodinger from a "hold" rating to a "sell" rating in a research report on Saturday, August 30th. Citigroup cut Schrodinger from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $35.00 to $20.00 in a research report on Friday, August 15th. Barclays started coverage on Schrodinger in a research report on Thursday, August 14th. They issued an "overweight" rating and a $25.00 price objective on the stock. Morgan Stanley dropped their price target on Schrodinger from $28.00 to $19.00 and set an "equal weight" rating on the stock in a research report on Monday, August 18th. Finally, KeyCorp dropped 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. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Schrodinger presently has an average rating of "Moderate Buy" and a consensus target price of $27.83.

Schrodinger Stock Performance

The company has a market capitalization of $1.36 billion, a P/E ratio of -7.44 and a beta of 1.79. The business has a 50 day moving average of $20.17 and a 200-day moving average of $21.59.

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

Institutional Trading of Schrodinger

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. State of Wyoming bought a new stake in shares of Schrodinger during the 2nd quarter valued at $39,000. Geneos Wealth Management Inc. increased its stake in Schrodinger by 18.1% in the 2nd quarter. Geneos Wealth Management Inc. now owns 100,329 shares of the company's stock worth $2,019,000 after acquiring an additional 15,386 shares during the last quarter. Nikko Asset Management Americas Inc. increased its stake in Schrodinger by 7.2% in the 2nd quarter. Nikko Asset Management Americas Inc. now owns 2,591,492 shares of the company's stock worth $52,089,000 after acquiring an additional 174,684 shares during the last quarter. Public Sector Pension Investment Board increased its stake in Schrodinger by 8.3% in the 2nd quarter. Public Sector Pension Investment Board now owns 190,431 shares of the company's stock worth $3,831,000 after acquiring an additional 14,671 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its stake in Schrodinger by 59.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 14,380 shares of the company's stock worth $289,000 after acquiring an additional 5,364 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.