Simulations Plus (NASDAQ:SLP) Stock Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• Simulations Plus shares moved above their 200-day moving average, reaching $18.36 and last trading at $18.31, compared with the moving average of $15.40.
• Analysts remain cautious: seven rate the stock Hold and one rates it Sell, producing a consensus “Reduce” rating and a $17.25 price target.
• The company exceeded quarterly expectations, reporting $0.30 in earnings per share versus $0.23 expected and revenue of $21.89 million versus $20.90 million projected.

Simulations Plus, Inc. (NASDAQ:SLP - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $15.40 and traded as high as $18.36. Simulations Plus shares last traded at $18.31, with a volume of 208,916 shares trading hands.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Craig Hallum lowered shares of Simulations Plus from a "buy" rating to a "hold" rating and set a $18.50 price objective on the stock. in a report on Thursday, June 18th. Weiss Ratings upgraded shares of Simulations Plus from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, July 10th. William Blair lowered shares of Simulations Plus from an "outperform" rating to a "market perform" rating in a research report on Wednesday, June 17th. TD Cowen cut their price target on shares of Simulations Plus from $19.00 to $16.00 and set a "hold" rating on the stock in a research note on Friday, April 10th. Finally, Wall Street Zen downgraded shares of Simulations Plus from a "buy" rating to a "hold" rating in a research note on Saturday, June 13th. Seven research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $17.25.

Simulations Plus Price Performance

The stock has a market cap of $370.32 million, a PE ratio of 45.77 and a beta of 1.30. The stock has a 50-day simple moving average of $17.69 and a 200-day simple moving average of $15.40.

Simulations Plus (NASDAQ:SLP - Get Free Report) last released its quarterly earnings data on Thursday, July 9th. The technology company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.07. The company had revenue of $21.89 million for the quarter, compared to the consensus estimate of $20.90 million. Simulations Plus had a return on equity of 13.50% and a net margin of 9.88%. As a group, equities research analysts anticipate that Simulations Plus, Inc. will post 0.8 EPS for the current year.

Insider Transactions at Simulations Plus

In related news, Director Walter S. Woltosz sold 4,177 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $18.44, for a total value of $77,023.88. Following the transaction, the director owned 3,202,131 shares in the company, valued at approximately $59,047,295.64. This trade represents a 0.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 19.10% of the company's stock.

Hedge Funds Weigh In On Simulations Plus

A number of hedge funds have recently made changes to their positions in SLP. Raymond James Financial Inc. purchased a new stake in Simulations Plus during the 2nd quarter worth $25,000. Quarry LP acquired a new stake in Simulations Plus in the 3rd quarter valued at $28,000. GAMMA Investing LLC raised its position in Simulations Plus by 26.0% in the second quarter. GAMMA Investing LLC now owns 2,831 shares of the technology company's stock valued at $52,000 after purchasing an additional 585 shares during the period. PNC Financial Services Group Inc. raised its position in Simulations Plus by 59.3% in the first quarter. PNC Financial Services Group Inc. now owns 4,485 shares of the technology company's stock valued at $53,000 after purchasing an additional 1,669 shares during the period. Finally, Fifth Third Bancorp acquired a new position in shares of Simulations Plus during the first quarter worth about $54,000. Hedge funds and other institutional investors own 78.08% of the company's stock.

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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