Simulations Plus (NASDAQ:SLP) Announces Earnings Results

Key Points

• Simulations Plus beat quarterly expectations, reporting EPS of $0.30 versus the $0.23 consensus estimate. Revenue also came in ahead of forecasts at $21.89 million compared with $20.90 million expected.
• The stock traded slightly higher on the day to $18.34, while the company remains down from its 52-week high of $21.01 and has a market cap of about $370 million.
• Analyst sentiment is mixed but cautious: the stock now carries a Hold consensus rating, with several recent downgrades and a consensus price target of $19.88.

Simulations Plus (NASDAQ:SLP - Get Free Report) posted its quarterly earnings data on Thursday. The technology company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.07, FiscalAI reports. Simulations Plus had a negative net margin of 77.96% and a positive return on equity of 16.21%. The firm had revenue of $21.89 million during the quarter, compared to the consensus estimate of $20.90 million.

Simulations Plus Stock Performance

Shares of NASDAQ SLP traded up $0.07 during trading hours on Thursday, hitting $18.34. 378,542 shares of the stock were exchanged, compared to its average volume of 387,888. The company's fifty day simple moving average is $16.40 and its two-hundred day simple moving average is $15.48. The company has a market cap of $370.47 million, a PE ratio of -5.86 and a beta of 1.30. Simulations Plus has a 1-year low of $11.09 and a 1-year high of $21.01.

Insider Buying and Selling

In other Simulations Plus news, Director Walter S. Woltosz sold 4,177 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $18.44, for a total transaction of $77,023.88. Following the completion of the sale, the director directly owned 3,202,131 shares in the company, valued at $59,047,295.64. This represents a 0.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,177 shares of company stock worth $108,754 in the last three months. 19.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Simulations Plus

A number of hedge funds and other institutional investors have recently bought and sold shares of SLP. First Light Asset Management LLC boosted its stake in shares of Simulations Plus by 156.4% in the 4th quarter. First Light Asset Management LLC now owns 1,968,917 shares of the technology company's stock valued at $35,893,000 after purchasing an additional 1,201,157 shares during the last quarter. Marshall Wace LLP raised its stake in Simulations Plus by 127.5% during the fourth quarter. Marshall Wace LLP now owns 569,783 shares of the technology company's stock worth $10,387,000 after buying an additional 319,301 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Simulations Plus by 278.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 427,865 shares of the technology company's stock valued at $7,800,000 after buying an additional 314,844 shares during the period. Squarepoint Ops LLC lifted its holdings in Simulations Plus by 522.1% in the third quarter. Squarepoint Ops LLC now owns 220,103 shares of the technology company's stock valued at $3,317,000 after buying an additional 184,725 shares during the period. Finally, Ameriprise Financial Inc. boosted its position in Simulations Plus by 25.3% during the second quarter. Ameriprise Financial Inc. now owns 875,447 shares of the technology company's stock valued at $15,277,000 after acquiring an additional 176,747 shares during the last quarter. Institutional investors own 78.08% of the company's stock.

Analyst Ratings Changes

SLP has been the subject of a number of analyst reports. Wall Street Zen downgraded shares of Simulations Plus from a "buy" rating to a "hold" rating in a research report on Saturday, June 13th. Weiss Ratings upgraded Simulations Plus from a "sell (d-)" rating to a "sell (d)" rating in a research note on Friday, June 5th. Craig Hallum cut Simulations Plus from a "buy" rating to a "hold" rating and set a $18.50 price objective for the company. in a report on Thursday, June 18th. William Blair downgraded Simulations Plus from an "outperform" rating to a "market perform" rating in a research report on Wednesday, June 17th. Finally, TD Cowen reduced their target price on Simulations Plus from $19.00 to $16.00 and set a "hold" rating on the stock in a report on Friday, April 10th. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Simulations Plus currently has a consensus rating of "Hold" and a consensus target price of $19.88.

About Simulations Plus

Simulations Plus, Inc NASDAQ: SLP specializes in advanced modeling and simulation software tailored to the pharmaceutical, biotechnology and chemical industries. The company's flagship products include ADMET Predictor, a quantitative structure-activity relationship (QSAR) tool for predicting absorption, distribution, metabolism, excretion and toxicity properties, and GastroPlus, a physiologically based pharmacokinetic (PBPK) modeling platform for simulating drug absorption and pharmacokinetics.

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