Wall Street Zen Upgrades Schrodinger (NASDAQ:SDGR) to "Hold"

Key Points

• Wall Street Zen upgraded Schrodinger (NASDAQ:SDGR) from a "sell" to a "hold" rating, indicating a more positive outlook on the stock.
• Analysts have varying assessments, with some reducing target prices: KeyCorp lowered theirs from $32 to $30, while Citigroup reduced theirs from $35 to $20.
• Schrodinger's shares rose 1.4% to $19.30, reflecting a slight increase in investor confidence amid recent rating changes and a reported revenue growth of 15.7% year-over-year.

Schrodinger (NASDAQ:SDGR - Get Free Report) was upgraded by analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Friday.

Several other equities analysts have also recently commented on the company. KeyCorp reduced their target price on Schrodinger from $32.00 to $30.00 and set an "overweight" rating for the company in a research note on Monday, July 14th. Citigroup cut Schrodinger from a "buy" rating to a "neutral" rating and reduced their price objective for the stock from $35.00 to $20.00 in a research note on Friday, August 15th. Barclays started coverage on Schrodinger in a research note on Thursday, August 14th. They set an "overweight" rating and a $25.00 price objective on the stock. Finally, Morgan Stanley reduced their price objective on Schrodinger from $28.00 to $19.00 and set an "equal weight" rating on the stock in a research note on Monday, August 18th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $27.83.

Schrodinger Stock Up 1.4%

Shares of Schrodinger stock traded up $0.27 on Friday, hitting $19.30. 698,280 shares of the company's stock traded hands, compared to its average volume of 978,781. The stock has a market cap of $1.42 billion, a P/E ratio of -7.78 and a beta of 1.79. The firm's 50-day moving average is $19.81 and its 200 day moving average is $21.47. Schrodinger has a 52-week low of $16.60 and a 52-week high of $28.47.

Schrodinger (NASDAQ:SDGR - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported ($0.59) EPS for the quarter, beating the consensus estimate of ($0.83) by $0.24. The company had revenue of $54.76 million during the quarter, compared to analysts' expectations of $52.03 million. Schrodinger had a negative return on equity of 45.70% and a negative net margin of 76.22%.The business's revenue was up 15.7% on a year-over-year basis. During the same period in the prior year, the business posted ($0.66) EPS. Equities research analysts forecast that Schrodinger will post -2.37 EPS for the current year.

Institutional Investors Weigh In On Schrodinger

Hedge funds have recently added to or reduced their stakes in the stock. Two Sigma Advisers LP bought a new stake in Schrodinger in the fourth quarter valued at $473,000. Allspring Global Investments Holdings LLC lifted its stake in Schrodinger by 30.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 174,371 shares of the company's stock valued at $3,442,000 after buying an additional 40,568 shares during the last quarter. GAMMA Investing LLC lifted its stake in Schrodinger by 118.5% in the first quarter. GAMMA Investing LLC now owns 6,109 shares of the company's stock valued at $121,000 after buying an additional 3,313 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in Schrodinger by 41.6% in the first quarter. Geneos Wealth Management Inc. now owns 84,943 shares of the company's stock valued at $1,677,000 after buying an additional 24,947 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in 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 valued at $86,018,000 after buying an additional 2,737,728 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.

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