Schrodinger Inc. (NASDAQ: SDGR) – Suitable For Long Term Buy?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Schrodinger Inc. (NASDAQ:SDGR). The institutional investor has increased its shareholding in the Healthcare company by 86.81% to 1.34 million shares with purchase of 0.62 million shares. This fresh investment now brings its stake to 2.67% valued currently at $96.85 million. In addition, BAMCO, Inc. raised its holdings by 1000.0 to 0.95 million shares. And Credit Suisse Securities (USA) LL.. has lifted its position by 29.65% or 0.21 million shares – to 0.91 million shares.

With over 1.37 million Schrodinger Inc. (SDGR) shares trading Tuesday and a closing price of $64.64 on the day, the dollar volume was approximately $88.56 million. The shares have shown a negative weekly performance of -5.81% and its price on 08/25/20 gained nearly 1.38%. Currently, there are 63.30M common shares owned by the public and among those 23.76M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for SDGR have a consensus price objective of $86.75. The analysts have set the share’s price value over the next 12 months at a high of $93.00 and a low of $70.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Schrodinger Inc. stock is 2.70 for the next 12 months. The average price target is 25.49% above its last price level and an upside to the estimated low will see the stock gain 7.66% over that period. But an upside of 30.49% will see the stock hit the forecast high price target while mean target price for the stock is $92.00.

Insiders at the company have transacted a total of 49 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 12 of these insider trades were purchases, accounting for 16,644,589 shares. Insider sales of the common stock occurred on 37 occasions, with total insider shares sold totaling 2,811,249 shares.

The top 3 mutual fund holders in Schrodinger Inc. are Baron Growth Fund, Vanguard Total Stock Market Index, and T Rowe Price New Horizons Fund. Baron Growth Fund owns 0.93 million shares of the company’s stock, all valued at over $67.47 million. Vanguard Total Stock Market Index bought 114.0 shares to see its total holdings expand to 0.36 million shares valued at over $26.03 million and representing 0.72% of the shares outstanding. T Rowe Price New Horizons Fund sold 16700.0 shares to bring its total holdings to over 0.34 million shares at a value of $24.52 million. T Rowe Price New Horizons Fund now owns shares totaling to 0.68% of the shares outstanding.

Shares of Schrodinger Inc. (NASDAQ: SDGR) opened at $63.46, down -$0.3 from a prior closing price of $63.76. However, the script later closed the day at $64.64, up 1.38%. The company’s stock has a 5-day price change of -5.81% and -0.93% over the past three months. It has a 12-month low price of $25.50 and touched a high of $99.50 over the same period. Currently, 1.37 million shares have been traded, compared to an average intraday trading volume of 1.16 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -9.04%, -17.51%, and 11.25% respectively.

Institutional ownership of Schrodinger Inc. (NASDAQ: SDGR) shares accounts for 42.40% of the company’s 63.30M shares outstanding. Mutual fund holders own 13.14%, while other institutional holders and individual stakeholders account for 29.71% and 11.94% respectively.

It has a market capitalization of $4.28B. The earnings-per-share (ttm) stands at -$0.69. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.84% over the week and 6.85% over the month.

Analysts forecast that Schrodinger Inc. (SDGR) will achieve an EPS of -$0.12 for the current quarter, -$0.09 for the next quarter and -$0.22 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.29 while analysts give the company a high EPS estimate of $0.09. Earnings per share for the fiscal year are expected to increase by 13.60%, and 47.60% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Schrodinger Inc. (SDGR) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the SDGR, a number of firms have released research notes about the stock. Morgan Stanley stated their Equal-Weight rating for the stock in a research note on March 02, 2020, with the firm’s price target at $43. Jefferies coverage for the Schrodinger Inc. (SDGR) stock in a research note released on March 02, 2020 offered a Hold rating with a price target of $42.


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