Schrodinger(SDGR) Shares Plunge 2.76% Amid Rising Short Interest

Schrodinger(SDGR) shares fell 2.76% today, reaching their lowest level since April 2025, with an intraday decline of 4.37%.

The strategy of buying SDGR shares after they reached a recent low and holding for one week yielded a 60.16% return, slightly outperforming the benchmark return of 56.94%. The excess return was 3.22%, with a CAGR of 21.25%. The strategy had a Sharpe ratio of 0.33, indicating a reasonable risk-adjusted return. However, it had a maximum drawdown of -63.39% and a volatility of 63.66%, suggesting significant risk fluctuations.

One of the key factors influencing Schrodinger's stock price is the recent increase in short interest. As of May 31, 2025, short interest rose by 4.6%, totaling 10,690,000 shares. This significant increase suggests a growing bearish sentiment among investors, who may be betting on a further decline in the stock price.

Technical indicators also point to a negative outlook for Schrodinger. The stock is currently showing sell signals from both short and long-term moving averages, which could further dampen investor confidence and contribute to the downward trend in the stock price.

On the other hand, there are some positive developments that could potentially offset the negative sentiment. Schrodinger recently announced encouraging initial data for SGR-1505, a treatment for relapsed or refractory B-cell lymphoma. This news could provide a boost to the stock price, as investors may see it as a sign of the company's potential for future growth and success in the biotech sector.

Additionally, Schrodinger is implementing a restructuring plan that includes reducing its workforce by 7%. While this move may be seen as a cost-cutting measure, it could also signal a shift in the company's strategic direction, which may have implications for its long-term performance and stock price.