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
Pillars as of Jul 5, 2026, based on the 10-K filed Feb 25, 2026
Schrodinger, Inc. (SDGR) Stock Analysis
Breakout setup
Healthcare · Health Information Services
Sell if holding. Engine safety override at $30.87: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: High short interest: 25%; 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 $30.87: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: High short interest: 25%; Below-average business quality; Rich valuation. Chart setup: Golden cross, above all MAs, RSI 63, MACD bullish. Score 4.3/10, moderate confidence.
Passes 5/8 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 6d<=7d. Suitability: aggressive.
Recent developments
updated 2026-10-29Recent 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
Generated 2026-10-29T11:14:35Z.
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
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. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
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
3 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
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 $30.87: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: High short interest: 25%; Below-average business quality; Rich valuation. Chart setup: Golden cross, above all MAs, RSI 63, MACD bullish. Prior stop was $28.71. Score 4.3/10, moderate confidence.
Analyst target $22.50 reached (−27.1% from $30.87); no take-profit level is published. Prior stop was $28.71. Stop-loss: $28.71.
Target reached (-27.1% upside); Quality below floor (3.2 < 4.0); Value-trap signals (2/5): Margin compression (op margin -62.9%), Material insider selling (8 sells, 3.50% of cap).
Schrodinger, Inc. trades at a P/E of N/A (forward -22.9). TrendMatrix value score: 3.5/10. Verdict: Sell.
13 analysts cover SDGR with a consensus score of 4.0/5. Average price target: $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.