Shares of Certara, Inc. (NASDAQ:CERT) reached a new low of $8.47 during trading on Saturday, following a downgrade from Barclays, which reduced its price target from $16.00 to $14.00. Despite this adjustment, Barclays maintains an overweight rating on the stock, indicating their overall positive outlook.
The stock, which closed at $11.27 the previous day, traded with significant volume, totaling 9,104,388 shares. In the wake of the downgrade, Certara’s stock has faced increased scrutiny from various analysts.
Analyst Ratings and Market Reactions
In addition to Barclays, other financial institutions have also adjusted their ratings on Certara. On August 7, UBS Group lowered its price objective from $17.50 to $15.00, while maintaining a buy rating. On September 5, Zacks Research changed its stance from a strong sell to a hold rating. Conversely, Weiss Ratings reaffirmed a sell rating on October 8, the same day KeyCorp raised its target price from $15.00 to $16.00.
The mixed signals from analysts reflect a divided sentiment towards Certara, with six analysts recommending a buy, five suggesting a hold, and one advising a sell. According to data from MarketBeat, the average rating for Certara stands at hold, with an average target price of $15.38.
Institutional Investor Activity
Recent trading activity has also seen several institutional investors adjusting their positions in Certara. Wasatch Advisors LP increased its stake by 45.7% during the second quarter, now owning 13,532,882 shares valued at approximately $158.3 million. Similarly, Geneva Capital Management LLC raised its holdings by 7.8%, owning 6,114,895 shares worth about $71.5 million.
Other notable investors include the Teacher Retirement System of Texas, which boosted its position by 25.3%, and Ameriprise Financial Inc., which increased its stake by 27.1%. Together, institutional investors hold approximately 73.96% of Certara’s stock.
Certara has a market capitalization of $1.39 billion, with a debt-to-equity ratio of 0.27. The company reported a price-to-earnings ratio of 123.86 and a beta of 1.44, indicating moderate volatility in its stock performance.
The company last reported its quarterly earnings on November 6, announcing earnings per share of $0.14, surpassing the consensus estimate of $0.11. Certara’s revenue for the quarter was $104.62 million, slightly above analyst expectations of $104.53 million. The firm has projected earnings per share between $0.450 and $0.470 for fiscal year 2025.
Founded to provide biosimulation software and technology-enabled services, Certara aims to advance drug development and clinical research globally. Its solutions are widely used in model-informed drug development and pharmacokinetics prediction, catering to a range of clients in the pharmaceutical sector.
As the stock continues to respond to market dynamics and analyst evaluations, stakeholders will be closely monitoring Certara’s performance in the coming months.
