Schrodinger (NASDAQ:SDGR) Shares Gap Up After Better-Than-Expected Earnings

Schrodinger, Inc. (NASDAQ:SDGR) shares 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 traded.

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 return on equity of 48.24% and a negative net margin of 68.49%.The firm had revenue of $87.24 million for the quarter, compared to the consensus estimate of $83.66 million. During the same quarter in the previous year, the company earned ($0.24) EPS. The business’s revenue for the quarter was up 4.7% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. UBS Group initiated coverage on shares of Schrodinger in a research note on Wednesday, January 7th. They issued a “neutral” rating and a $18.00 price objective for the company. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Schrodinger in a research report on Friday, January 9th. KeyCorp lowered their price target on Schrodinger from $28.00 to $25.00 and set an “overweight” rating on the stock in a report on Thursday, January 8th. TD Cowen reissued a “buy” rating on shares of Schrodinger in a research note on Thursday, January 8th. Finally, Wall Street Zen upgraded Schrodinger from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $24.33.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Millennium Management LLC raised its stake 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 in the last quarter. Lazard Asset Management LLC increased its holdings in Schrodinger by 65.3% in the third quarter. Lazard Asset Management LLC now owns 2,346,441 shares of the company’s stock worth $47,070,000 after buying an additional 927,234 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position 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 valued at $91,365,000 after acquiring an additional 904,619 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its stake in Schrodinger by 38.7% in the third quarter. Massachusetts Financial Services Co. MA now owns 2,072,433 shares of the company’s stock valued at $41,573,000 after acquiring an additional 577,899 shares during the last quarter. Finally, Bank of America Corp DE grew its position in Schrodinger by 428.3% in the second quarter. Bank of America Corp DE now owns 606,916 shares of the company’s stock worth $12,211,000 after acquiring an additional 492,032 shares in the last quarter. 79.05% of the stock is owned by institutional investors and hedge funds.

Schrodinger Stock Up 3.3%

The company’s 50-day simple moving average is $15.57 and its 200 day simple moving average is $17.91. The company has a market capitalization of $897.89 million, a P/E ratio of -5.09 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.