Schrodinger shows deteriorating fundamental quality — cash burn, no moat, declining revenue, and a consistent earnings-miss pattern — that keeps it below the investment quality floor, even though price momentum and rising volume have shown some resilience a bull case could point to.
Thesis pillars
- Deteriorating Quality Cash Burn→Stable
- Declining Revenue Trend→Stable
- Earnings Miss Pattern↓Deteriorating
- +2 more pillars — see the Why tab for full reasoning
Schrodinger, Inc. (SDGR) Stock Analysis
Healthcare · Health Information Services
Sell if holding. Engine safety override at $28.85: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.9/10. Specifically: High short interest: 27%; Below-average business quality; Rich valuation.
Schrödinger, Inc., together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications in the United States, the Asia-Pacific, Europe, Middle East, Africa, and internationally.... Read more
Sell if holding. Engine safety override at $28.85: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.9/10. Specifically: High short interest: 27%; Below-average business quality; Rich valuation. Chart setup: No clear chart pattern; technical signals are mixed. Score 3.9/10, high confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 40d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-09-26Recent Developments — Schrodinger, Inc.
Latest news
- NEWS Vicor, Arm Holdings, Micron Technology And Other Big Stocks Moving Higher On Thursday — benzinga Sep 17, 2026 positive
- NEWS Schrödinger Announces Formation Of Tectora, New Biotechnology Company; Tectora Secures $55M Series A Investment From NEA — benzinga Sep 9, 2026 positive
- NEWS Schrodinger Sees FY Drug Discovery Revenue At $65M-$75M — benzinga Aug 5, 2026 positive
- NEWS Schrodinger Q2 Adj. EPS $0.08 Beats $(0.48) Estimate, Sales $58.889M Beat $47.228M Estimate — benzinga Aug 5, 2026 positive
- NEWS Schrödinger Announces Strategic Agreement With Bristol Myers Squibb To Deploy Bunsen Agentic AI Co-Scientist At Scale Ac — benzinga Aug 5, 2026 positive
Generated 2026-09-26T02:36:58Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-06-23Item 5.02LOWStockholders approved an amendment to the 2022 Equity Incentive Plan increasing shares available for issuance by 3,000,000 shares; routine compensatory plan increase, not a departure.SEC filing →
- 2026-06-08Item 5.02LOWCompany entered a separation agreement with former Chief Commercial Officer Mannix Aklian confirming previously disclosed severance terms following his May 2026 departure, including nine months of salary continuation.SEC filing →
- 2026-05-20Item 5.02MEDIUMMannix Aklian ceased serving as Chief Commercial Officer effective May 18, 2026; Paul Davie, the company's former EVP of Sales, returns as interim CCO while a search for a permanent replacement is conducted.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
5 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Volatile — 7.1% daily ATR makes tight stops impractical. Position-size conservatively.static
Unprofitable operations — net margin -21.0%. Quality floor flags this regardless of sector context.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $28.85: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.9/10. Specifically: High short interest: 27%; Below-average business quality; Rich valuation. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $26.83. Score 3.9/10, high confidence.
Take-profit target: $30.96 (-35.4% upside). Prior stop was $26.83. Stop-loss: $26.83.
Target reached (-35.4% upside); Quality below floor (3.2 < 4.0); Value-trap signals (2/5): Margin compression (op margin -62.9%), Material insider selling (11 sells, 4.07% of cap).
Schrodinger, Inc. trades at a P/E of N/A (forward -21.8). TrendMatrix value score: 3.6/10. Verdict: Sell.
13 analysts cover SDGR with a consensus score of 4.0/5. Average price target: $21.
What does Schrodinger, Inc. do?Schrödinger, Inc., together with its subsidiaries, develops physics-based computational platform that enables discovery...
Schrödinger, Inc., together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications in the United States, the Asia-Pacific, Europe, Middle East, Africa, and internationally. The company operates in two segments, Software and Drug Discovery. The Software segment sells its software to transform molecular discovery for life sciences and materials science industries. The Drug Discovery segment focuses on building a portfolio of preclinical and clinical programs, internally and through collaborations. It has a research collaboration and license agreement with Novartis Pharma AG to advance multiple development candidates. Schrödinger, Inc. was incorporated in 1990 and is based in New York, New York.