NEW YORK—Margaret Dugan, the Chief Medical Officer of Schrodinger, Inc. (NASDAQ:SDGR), recently sold 1,531 shares of the company's common stock. The sale, executed on October 15, was completed at an average price of $17.783 per share, amounting to a total transaction value of $27,225.
This transaction was conducted as part of a pre-arranged trading plan under Rule 10b5-1, which Dugan adopted on November 13, 2023. The sale was broker-assisted to cover withholding tax liabilities from the vesting of restricted stock units (RSUs), and it was not a discretionary trade by Dugan.
Following this sale, Dugan retains ownership of 13,469 shares, which includes 11,250 unvested RSUs.
In other recent news, Schrodinger Inc . has maintained its full-year revenue outlook despite reporting a total revenue of $47.3 million and an operating loss of $52.7 million in its Q2 2024 earnings call. The company's software business contributed significantly to the revenue, posting $35.4 million. Schrodinger also highlighted strategic advances, such as the initiation of dosing for its Phase 1 solid tumor study for SGR-3515 and an expected receipt of $48 million from the sale of its stake in Morphic Therapeutic.
Additionally, Schrodinger has streamlined its licensing arrangements with Columbia University through a Master License Agreement, granting the company exclusive access to significant programs. This move is expected to reduce complexities and costs associated with commercializing products developed using the licensed technology.
Analysts from TD Cowen and Morgan Stanley have given their perspectives on Schrodinger's recent developments. TD Cowen maintained a Buy rating for the company, citing its unique physics-based computation methods, while Morgan Stanley revised its outlook, adjusting the price target for Schrodinger's shares to $30 from $43, influenced by a decrease in projected revenues from the company's drug discovery endeavors.
Schrodinger's future plans include scaling its software business and advancing its drug discovery programs, supported by a $10 million grant from the Bill & Melinda Gates Foundation for a new computational solution to predict off-target protein binding.
InvestingPro Insights
While Margaret Dugan's recent stock sale was part of a pre-arranged plan, it's worth examining Schrodinger's current financial position to provide context for investors. According to InvestingPro data, Schrodinger's market capitalization stands at $1.3 billion, reflecting its position in the biotechnology sector.
The company's financial health shows some strengths, as highlighted by InvestingPro Tips. Notably, Schrodinger holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These factors suggest a solid financial foundation, which could be reassuring for investors in light of insider transactions.
However, profitability remains a challenge for Schrodinger. The company was not profitable over the last twelve months, with a negative P/E ratio of -7.1. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year. Despite these challenges, Schrodinger's revenue for the last twelve months reached $200.63 million, with a quarterly revenue growth of 34.51% in Q2 2024, signaling potential for future growth.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with over 10 more tips available for Schrodinger. These tips could provide valuable context for understanding the company's position in the market and its future prospects.
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