Schrodinger (NASDAQ:SDGR) Trading Up 5.8% - Here's Why

Key Points

• SDGR jumped 5.8% to $12.42 on Tuesday, with 793,339 shares traded—about 42% below its average session volume.
• Analysts are mixed: the consensus rating is Hold with a $20.50 average price target after recent cuts (UBS lowered its target to $13 while KeyCorp trimmed its objective to $20), reflecting divided views.
• Schrödinger posted an EPS and revenue beat for the quarter ($0.44 EPS vs. -$0.13 estimate; $87.24M revenue vs. $83.66M) but remains unprofitable (net margin -40.4%) and analysts forecast -$1.25 EPS for the fiscal year.

Schrodinger, Inc. (NASDAQ:SDGR - Get Free Report) shot up 5.8% on Tuesday . The stock traded as high as $12.43 and last traded at $12.42. 793,339 shares changed hands during mid-day trading, a decline of 42% from the average session volume of 1,378,775 shares. The stock had previously closed at $11.74.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on SDGR shares. UBS Group reduced their price target on shares of Schrodinger from $18.00 to $13.00 and set a "neutral" rating for the company in a report on Tuesday, March 17th. TD Cowen restated a "buy" rating on shares of Schrodinger in a research report on Thursday, January 8th. Wall Street Zen upgraded shares of Schrodinger from a "sell" rating to a "hold" rating in a research note on Saturday, January 31st. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Schrodinger in a report on Friday, January 9th. Finally, KeyCorp reduced their price objective on Schrodinger from $25.00 to $20.00 and set an "overweight" rating for the company in a research report on Wednesday, April 8th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $20.50.

Schrodinger Stock Up 4.3%

The business's 50 day moving average is $11.97 and its two-hundred day moving average is $15.62. The firm has a market capitalization of $903.56 million, a P/E ratio of -8.62 and a beta of 1.62.

Schrodinger (NASDAQ:SDGR - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.13) by $0.57. The firm had revenue of $87.24 million during the quarter, compared to analyst estimates of $83.66 million. Schrodinger had a negative net margin of 40.37% and a negative return on equity of 29.47%. Schrodinger's revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.24) EPS. As a group, equities analysts anticipate that Schrodinger, Inc. will post -1.25 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Ramy Farid sold 43,000 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $12.33, for a total value of $530,190.00. Following the completion of the transaction, the chief executive officer directly owned 330,824 shares in the company, valued at $4,079,059.92. This trade represents a 11.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 59,184 shares of company stock valued at $741,556 in the last ninety days. Company insiders own 21.00% of the company's stock.

Hedge Funds Weigh In On Schrodinger

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SDGR. Millennium Management LLC lifted its holdings in shares of Schrodinger by 1,075.8% in the third quarter. Millennium Management LLC now owns 1,551,721 shares of the company's stock valued at $31,128,000 after buying an additional 1,419,750 shares during the period. Lazard Asset Management LLC raised its position in Schrodinger by 65.3% in the third quarter. Lazard Asset Management LLC now owns 2,346,441 shares of the company's stock worth $47,070,000 after acquiring an additional 927,234 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in Schrodinger by 24.8% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,554,569 shares of the company's stock worth $91,365,000 after acquiring an additional 904,619 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in Schrodinger by 38.7% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 2,072,433 shares of the company's stock valued at $41,573,000 after acquiring an additional 577,899 shares during the last quarter. Finally, Bank of America Corp DE lifted its holdings in Schrodinger by 428.3% in the 2nd quarter. Bank of America Corp DE now owns 606,916 shares of the company's stock valued at $12,211,000 after acquiring an additional 492,032 shares during the last quarter. 79.05% of the stock is owned by institutional investors.

Schrodinger Company Profile

Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

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