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
Pillars as of Jul 5, 2026, based on the 10-K filed Feb 25, 2026· older than 90 days
Schrodinger, Inc. (SDGR) Stock Analysis
Breakout setup
Healthcare · Health Information Services
Sell if holding. Engine safety override at $27.18: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 25%; Elevated put/call ratio: 2.00; Below-average business quality.
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 $27.18: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 25%; Elevated put/call ratio: 2.00; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. Score 4.0/10, high confidence.
Passes 5/9 gates (positive momentum, clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: aggressive.
Recent developments
updated Oct 28, 2026Recent Developments — Schrodinger, Inc.
Latest news
- NEWS 10 Health Care Stocks Whale Activity In Today’s Session — benzinga Oct 28, 2026 neutral
- NEWS Schrödinger to Present at UBS Global Healthcare Conference — fiscal.ai Oct 28, 2026
- NEWS Schrödinger, Inc. Reports Inducement Equity Grants — fiscal.ai Oct 26, 2026 neutral
- NEWS Schrödinger to Announce Third Quarter 2026 Financial Results on November 4 — fiscal.ai Oct 21, 2026 neutral
- NEWS UBS Adjusts Schrödinger Price Target to $21 From $19, Maintains Neutral Rating — fiscal.ai Oct 20, 2026 positive
Latest item Oct 28, 2026 · Generated 2026-11-04T12:10:05Z.
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. How we score · Editorial policy
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Rating Breakdown
4 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.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 $27.18: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 25%; Elevated put/call ratio: 2.00; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. Prior stop was $25.28. Score 4.0/10, high confidence.
Analyst target $22.50 reached (−17.2% from $27.18); no take-profit level is published. Prior stop was $25.28. Stop-loss: $25.28.
Target reached (-17.2% upside); Quality below floor (3.2 < 4.0); Value-trap signals (2/5): Margin compression (op margin -62.9%), Material insider selling (6 sells, 3.53% of cap).
Schrodinger, Inc. trades at a P/E of N/A (forward -20.1). TrendMatrix value score: 3.8/10. Verdict: Sell.
13 analysts rate SDGR, with a consensus score of 4.0/5. 7 analysts publish price targets averaging $26.
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.