Schrodinger (NASDAQ:SDGR) Trading Down 3.6% - Here's Why

Key Points

• Schrodinger's stock fell by 3.6%, closing at $20.68 after trading as low as $20.75, with significantly reduced trading volume compared to its average.
• Analysts have recently adjusted their ratings on Schrodinger, with **Morgan Stanley** lowering its price target from $28 to $19, while **Barclays** initiated coverage with an **overweight** rating at a $25 price target.
• The company reported a quarterly revenue of **$54.76 million**, which exceeded expectations, and its earnings per share were better than anticipated at **($0.59)**, indicating potential improvement despite a negative net margin.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report)'s stock price fell 3.6% during mid-day trading on Friday . The company traded as low as $20.75 and last traded at $20.68. 367,739 shares traded hands during mid-day trading, a decline of 68% from the average session volume of 1,140,927 shares. The stock had previously closed at $21.45.

Analyst Ratings Changes

A number of brokerages have recently commented on SDGR. 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. Barclays began coverage on Schrodinger in a report on Thursday, August 14th. They set an "overweight" rating and a $25.00 price objective on the stock. Wall Street Zen raised Schrodinger from a "sell" rating to a "hold" rating in a report on Friday, September 26th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Schrodinger in a report on Saturday, September 27th. Finally, Citigroup lowered Schrodinger from a "buy" rating to a "neutral" rating and reduced their price objective for the company from $35.00 to $20.00 in a research report on Friday, August 15th. Four 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. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $26.57.

Schrodinger Stock Performance

The firm has a market cap of $1.52 billion, a P/E ratio of -8.30 and a beta of 1.74. The stock has a fifty day simple moving average of $19.64 and a 200 day simple moving average of $21.41.

Schrodinger (NASDAQ:SDGR - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported ($0.59) EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $52.03 million. During the same quarter in the previous year, the company posted ($0.66) earnings per share. Schrodinger's revenue was up 15.7% compared to the same quarter last year. Research analysts predict that Schrodinger, Inc. will post -2.37 earnings per share for the current year.

Hedge Funds Weigh In On Schrodinger

Large investors have recently made changes to their positions in the business. Rubric Capital Management LP lifted its position in shares of Schrodinger by 4.2% in the second quarter. Rubric Capital Management LP now owns 5,000,000 shares of the company's stock worth $100,600,000 after buying an additional 200,000 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Schrodinger by 169.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,357,532 shares of the company's stock worth $86,018,000 after buying an additional 2,737,728 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Schrodinger by 5.4% in the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,649,950 shares of the company's stock worth $73,437,000 after buying an additional 187,535 shares in the last quarter. Nikko Asset Management Americas Inc. lifted its position in shares of Schrodinger by 7.2% in the second quarter. Nikko Asset Management Americas Inc. now owns 2,591,492 shares of the company's stock worth $52,089,000 after buying an additional 174,684 shares in the last quarter. Finally, ARK Investment Management LLC raised its position in Schrodinger by 3.9% during the first quarter. ARK Investment Management LLC now owns 2,294,519 shares of the company's stock valued at $45,294,000 after purchasing an additional 85,761 shares during the period. 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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