Simulations Plus (SLP) Plunges 26.10% on Earnings Miss

Simulations Plus (SLP) experienced a decline of 0.46%, marking its second consecutive day of losses, with a total drop of 26.10% over the past two days. The share price fell to its lowest level since July 2017 today, with an intraday decline of 0.93%.

The strategy of buying S&P 500 (SLP) shares after they reach a recent low and holding for one week resulted in poor performance over the past five years. The strategy’s CAGR was -11.31%, with a total return of -26.07% and an excess return of -84.10%. It underperformed the benchmark significantly and exhibited high volatility, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.26.

Simulations Plus Inc. (NASDAQ:SLP) faced a significant decline in its stock price on July 16, 2025, primarily due to its third-quarter 2025 earnings report. The report revealed a substantial net loss of $3.35 per share, a stark contrast to the profit of $0.16 per share reported in the same quarter of 2024. This financial performance raised concerns about the company's recent performance and future prospects.

On July 15, 2025, Simulations Plus experienced a notable pre-market trading drop of 10.82%. This decline was influenced by the company's recent financial performance and future outlook. The negative sentiment was further exacerbated by KeyBanc's decision to downgrade the company from an Overweight to a Sector Weight rating. This downgrade contributed to the overall pessimistic market sentiment surrounding Simulations Plus.

Despite the negative outlook, some analysts maintained a more optimistic stance. For instance, BTIG continued to hold a Buy rating for the company, indicating mixed market sentiment. Additionally, Stephens adjusted its price target for Simulations Plus from $28 to $20 while maintaining an Overweight rating. This adjustment reflected a more cautious outlook on the stock, acknowledging the company's recent challenges while still recognizing its potential for future growth.