Weiss Ratings Reaffirms Sell (D-) Rating for Simulations Plus (NASDAQ:SLP)

Key Points

• Weiss Ratings has reaffirmed a "Sell (D-)" rating for Simulations Plus (NASDAQ: SLP), indicating ongoing concerns about the company's stock performance.
• Recent analyst reports show mixed sentiments: while Craig Hallum and others lowered their price targets, four analysts still maintain a "Buy" rating overall, suggesting a cautious but not entirely negative outlook.
• Simulations Plus reported an earnings per share (EPS) of $0.45 for the last quarter, surpassing estimates, but its revenue was below expectations, highlighting challenges in revenue generation despite strong earnings performance.

Simulations Plus (NASDAQ:SLP - Get Free Report)'s stock had its "sell (d-)" rating restated by equities researchers at Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

A number of other research firms also recently issued reports on SLP. Craig Hallum reduced their price target on shares of Simulations Plus from $45.00 to $36.00 and set a "buy" rating on the stock in a research note on Friday, June 13th. Cowen assumed coverage on shares of Simulations Plus in a research note on Tuesday, September 30th. They issued a "hold" rating on the stock. Stephens cut their target price on shares of Simulations Plus from $28.00 to $20.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 15th. JMP Securities reaffirmed a "market perform" rating on shares of Simulations Plus in a research note on Wednesday, June 18th. Finally, TD Cowen assumed coverage on shares of Simulations Plus in a research note on Tuesday, September 30th. They set a "hold" rating and a $16.00 target price on the stock. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $24.40.

Simulations Plus Stock Performance

Simulations Plus stock opened at $16.47 on Wednesday. The company's 50 day simple moving average is $14.52 and its 200-day simple moving average is $21.24. The company has a market capitalization of $331.49 million, a price-to-earnings ratio of -5.23 and a beta of 0.99. Simulations Plus has a 1 year low of $12.39 and a 1 year high of $37.67.

Simulations Plus (NASDAQ:SLP - Get Free Report) last released its quarterly earnings results on Monday, July 14th. The technology company reported $0.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.26 by $0.19. The business had revenue of $20.36 million for the quarter, compared to the consensus estimate of $22.83 million. Simulations Plus had a negative net margin of 78.63% and a positive return on equity of 11.62%. The business's revenue was up 9.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.27 EPS. Equities analysts expect that Simulations Plus will post 1.09 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Raymond James Financial Inc. acquired a new position in Simulations Plus during the 2nd quarter worth approximately $25,000. Fifth Third Bancorp grew its holdings in Simulations Plus by 33.8% during the 1st quarter. Fifth Third Bancorp now owns 1,485 shares of the technology company's stock worth $36,000 after acquiring an additional 375 shares in the last quarter. AlphaQuest LLC acquired a new position in Simulations Plus during the 2nd quarter worth approximately $69,000. US Bancorp DE grew its holdings in Simulations Plus by 15.6% during the 1st quarter. US Bancorp DE now owns 6,576 shares of the technology company's stock worth $161,000 after acquiring an additional 889 shares in the last quarter. Finally, State of Tennessee Department of Treasury grew its holdings in Simulations Plus by 182.9% during the 2nd quarter. State of Tennessee Department of Treasury now owns 11,191 shares of the technology company's stock worth $195,000 after acquiring an additional 7,235 shares in the last quarter. Institutional investors and hedge funds own 78.08% of the company's stock.

Simulations Plus Company Profile

Simulations Plus, Inc develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products.

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