Schrodinger Stock Has Technical Strength as It Hits New 2-Year Highs

• Schrodinger (SDGR) is trading at new 2-year highs.
• SDGR maintains strong technical momentum with shares up more than 50% over the past year.
• SDGR maintains a 100% “Buy” technical opinion from Barchart.
• Analyst sentiment is mixed, with price targets from $17 to $41.17 and high short interest (15.02%). Caution is warranted after the recent run.

Today’s Featured Stock

Valued at $2.67 billion, Schrodinger (SDGR) provides computational platforms to accelerate drug discovery and materials design that are deployed by biopharmaceutical and industrial companies, academic institutions, and government laboratories.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. SDGR checks those boxes. The Trend Seeker issued a new “Buy” signal on Aug. 5. The stock has gained 76.43% since that signal.

Barchart’s Technical Indicators for Schrodinger

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Schrodinger hit a 2-year high of $31.59 on Sept. 22.

• Schrodinger has a Weighted Alpha of 44.07.
• SDGR has a 100% “Buy” opinion from Barchart.
• The stock has gained 51.73% over the past 52 weeks.
• Schrodinger has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $28.92 with a 50-day moving average of $19.25.
• SDGR had 11 highs and gained 46.73% in the last month.
• 60-month beta of 1.69.
• Relative Strength Index (RSI) is at 70.69.
• There’s a technical support level around $29.73.

Don’t Forget the Fundamentals

• $2.67 billion market capitalization.
• Revenue is projected to decrease by 5.14% this year but grow again by 3.12% next year.
• Earnings are estimated to increase by 9.47% this year and an additional 26.23% next year.

Analyst and Investor Sentiment on Schrodinger

• The Wall Street analysts followed by Barchart give the stock 5 “Strong Buy” and 3 “Hold” opinions with price targets from $17 to $30.
• Value Line rates the stock “Average.”
• Morningstar thinks the stock is 26% undervalued with a fair value of $41.17.
• CFRA’s MarketScope rates the stock as “Sell.”
• 19,530 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.”
• TipRanks’ analysts’ price target is $20.00.
• Short interest is a very high 15.02% of the float with 11.76 days to cover the float.

The Bottom Line on Schrodinger

Analysts are all over the place on their price targets. The stock has had a pretty good run up and the short sellers are betting against the stock. I wouldn’t be willing to buy at this point, but if you already own it and have a reasonable stop loss in place, you should be fine.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.