Schrodinger (NASDAQ:SDGR) Shares Gap Up Following Earnings Beat

Schrodinger, Inc. (NASDAQ:SDGR) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $11.80, but opened at $13.00. Schrodinger shares last traded at $12.40, with a volume of 706,638 shares changing hands.

The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.57. The business had revenue of $87.24 million for 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 29.86%. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter last year, the business earned ($0.24) earnings per share.

Analyst Upgrades and Downgrades

A number of brokerages have commented on SDGR. Wall Street Zen raised Schrodinger from a “sell” rating to a “hold” rating in a report on Saturday, January 31st. UBS Group started coverage on Schrodinger in a research report on Wednesday, January 7th. They set a “neutral” rating and a $18.00 price target for the company. KeyCorp decreased their price objective on Schrodinger from $28.00 to $25.00 and set an “overweight” rating on the stock in a report on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Schrodinger in a research note on Friday, January 9th. Finally, Bank of America upgraded shares of Schrodinger from a “neutral” rating to a “buy” rating and set a $24.00 target price for the company in a research report on Monday, December 15th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $21.75.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SDGR. Millennium Management LLC grew its holdings in shares of Schrodinger by 1,075.8% during the 3rd quarter. Millennium Management LLC now owns 1,551,721 shares of the company’s stock worth $31,128,000 after purchasing an additional 1,419,750 shares during the period. Lazard Asset Management LLC lifted 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 valued at $47,070,000 after buying an additional 927,234 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in Schrodinger by 24.8% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,554,569 shares of the company’s stock worth $91,365,000 after buying an additional 904,619 shares during the period. Massachusetts Financial Services Co. MA boosted its stake in Schrodinger by 38.7% during the third quarter. Massachusetts Financial Services Co. MA now owns 2,072,433 shares of the company’s stock worth $41,573,000 after buying an additional 577,899 shares during the period. Finally, Bank of America Corp DE increased its position in shares of Schrodinger by 428.3% during the second 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 currently owned by hedge funds and other institutional investors.

Schrodinger Stock Performance

The business’s 50 day moving average price is $15.37 and its 200-day moving average price is $17.83. The firm has a market capitalization of $888.46 million, a PE ratio of -8.49 and a beta of 1.57.

About Schrodinger

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.