Certara (NASDAQ:CERT) Shares Gap Down Following Weak Earnings

Certara, Inc. (NASDAQ:CERT) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $8.18, but opened at $6.33. Certara shares last traded at $6.9460, with a volume of 1,816,245 shares changing hands.

The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.01). The company had revenue of $93.27 million during the quarter, compared to analyst estimates of $98.09 million. Certara had a negative net margin of 3.60% and a positive return on equity of 3.52%. The business’s revenue was down 10.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.07 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Robert W. Baird decreased their price objective on Certara from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Tuesday, May 12th. Barclays lowered their price objective on shares of Certara from $8.00 to $6.50 and set an “equal weight” rating on the stock in a research report on Tuesday, May 12th. BMO Capital Markets reduced their target price on shares of Certara from $7.00 to $6.00 and set a “market perform” rating for the company in a report on Tuesday, May 12th. Stephens lowered their price target on Certara from $10.00 to $9.00 and set an “overweight” rating on the stock in a report on Tuesday, May 12th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Certara in a research report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $8.85.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. raised its position in shares of Certara by 50.7% during the 2nd quarter. Osaic Holdings Inc. now owns 3,491 shares of the company’s stock worth $41,000 after purchasing an additional 1,175 shares during the last quarter. Corient Private Wealth LLC grew its holdings in Certara by 11.7% during the 2nd quarter. Corient Private Wealth LLC now owns 12,362 shares of the company’s stock valued at $144,000 after buying an additional 1,295 shares during the last quarter. Central Pacific Bank Trust Division grew its holdings in Certara by 8.7% during the 2nd quarter. Central Pacific Bank Trust Division now owns 19,460 shares of the company’s stock valued at $127,000 after buying an additional 1,558 shares during the last quarter. Treasurer of the State of North Carolina increased its position in Certara by 2.9% during the second quarter. Treasurer of the State of North Carolina now owns 56,628 shares of the company’s stock worth $663,000 after buying an additional 1,597 shares in the last quarter. Finally, Nicolet Advisory Services LLC increased its position in Certara by 7.4% during the third quarter. Nicolet Advisory Services LLC now owns 30,608 shares of the company’s stock worth $396,000 after buying an additional 2,100 shares in the last quarter. 73.96% of the stock is owned by hedge funds and other institutional investors.

Certara Stock Performance

The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.28. The stock has a fifty day moving average price of $6.36 and a two-hundred day moving average price of $6.57. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of -70.55 and a beta of 1.44.

Certara Company Profile

Certara is a biosimulation software and services company that partners with pharmaceutical, biotechnology and medical device developers to accelerate drug discovery, development and regulatory approval. The company’s platform integrates quantitative pharmacology, real-world evidence, artificial intelligence and machine learning to model and simulate drug behavior across a range of therapeutic areas and patient populations. By applying these mechanistic and data-driven approaches, Certara helps its clients predict clinical outcomes, optimize dosing strategies and streamline decision-making throughout the product lifecycle.

The company’s offerings are divided into software tools and consulting services.