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→Stable
- +2 more pillars — see the Why tab for full reasoning
Schrodinger, Inc. (SDGR) Stock Analysis
Recovery setup
Healthcare · Health Information Services
Sell if holding. Engine safety override at $17.18: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 24%; 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 $17.18: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 24%; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 70. Score 4.1/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-07Recent Developments — Schrodinger, Inc.
Latest news
- NEWS Anthropic Is Going All In on Drug Discovery Just as Pharma Stops Talking About AI — benzinga Jul 1, 2026 neutral
Generated 2026-07-07T13:21:48Z.
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.
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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
Revenue shrinking — -1.6% YoY. Growth thesis broken unless recovery story develops.static
Unprofitable operations — net margin -40.6%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $17.18: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 24%; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 70. Prior stop was $15.81. Score 4.1/10, moderate confidence.
Take-profit target: $18.16 (+6.8% upside). Prior stop was $15.81. Stop-loss: $15.81.
Quality below floor (2.8 < 4.0); Value-trap signals (2/5): High leverage (D/E 3.6), Material insider selling (3 sells, 15.11% of cap).
Schrodinger, Inc. trades at a P/E of N/A (forward -10.8). TrendMatrix value score: 6.4/10. Verdict: Sell.
14 analysts cover SDGR with a consensus score of 4.1/5. 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.