Schrodinger (NASDAQ:SDGR) Shares Gap Up on Strong Earnings

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 trading hands.

The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.57. Schrodinger had a negative net margin of 40.37% and a negative return on equity of 29.86%. The company had revenue of $87.24 million for the quarter, compared to analysts’ expectations of $83.66 million. During the same quarter last year, the company posted ($0.24) earnings per share. The firm’s quarterly revenue was up 4.7% on a year-over-year basis.

Analyst Ratings Changes

A number of research firms recently commented on SDGR. Wall Street Zen upgraded Schrodinger from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. TD Cowen restated a “buy” rating on shares of Schrodinger in a research note on Thursday, January 8th. UBS Group assumed coverage on shares of Schrodinger in a research report on Wednesday, January 7th. They set a “neutral” rating and a $18.00 price target for the company. Bank of America raised shares of Schrodinger from a “neutral” rating to a “buy” rating and set a $24.00 price objective on the stock in a report on Monday, December 15th. Finally, KeyCorp cut their target price on shares of Schrodinger from $28.00 to $25.00 and set an “overweight” rating for the company in a research report on Thursday, January 8th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $21.75.

Institutional Trading of Schrodinger

Several hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC grew its holdings in shares of Schrodinger by 722.8% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,374 shares of the company’s stock valued at $25,000 after purchasing an additional 1,207 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in Schrodinger during the fourth quarter valued at $26,000. Hantz Financial Services Inc. grew its stake in shares of Schrodinger by 5,025.8% in the 4th quarter. Hantz Financial Services Inc. now owns 1,589 shares of the company’s stock worth $28,000 after buying an additional 1,558 shares in the last quarter. State of Wyoming bought a new stake in shares of Schrodinger in the 2nd quarter worth about $39,000. Finally, Aster Capital Management DIFC Ltd raised its position in shares of Schrodinger by 212.4% during the 3rd quarter. Aster Capital Management DIFC Ltd now owns 1,943 shares of the company’s stock valued at $39,000 after buying an additional 1,321 shares in the last quarter. 79.05% of the stock is owned by hedge funds and other institutional investors.

Schrodinger Stock Performance

The stock has a market cap of $940.03 million, a P/E ratio of -8.99 and a beta of 1.57. The stock’s fifty day moving average is $15.48 and its 200 day moving average is $17.88.

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.