Shares of Certara, Inc. (NASDAQ:CERT) experienced a significant decline on Saturday, reaching a new 52-week low following an analyst downgrade by Barclays. The financial institution lowered its price target for the stock from $16.00 to $14.00, while maintaining an overweight rating. During the trading session, Certara’s shares fell to as low as $8.47 before ultimately closing at $8.67, with a trading volume of approximately 9,104,388 shares. The stock had previously closed at $11.27.
Analyst Ratings and Market Response
Certara has been at the center of various analysts’ reports recently. On August 7, UBS Group adjusted its price objective down from $17.50 to $15.00, while still assigning a “buy” rating. On September 5, Zacks Research upgraded the stock from a “strong sell” rating to a “hold” rating. However, Weiss Ratings reiterated a “sell (d)” rating on October 8, coinciding with a report from KeyCorp, which raised its target price from $15.00 to $16.00 and maintained an overweight rating.
In total, six analysts have given Certara a “buy” rating, five have issued a “hold” rating, and one has assigned a “sell” rating. According to data from MarketBeat, the stock currently holds an average rating of “hold” with an average target price of $15.38.
Institutional Investment Trends
Recent changes in institutional holdings further highlight investor sentiment around Certara. Wasatch Advisors LP increased its stake by 45.7% during the second quarter, now owning 13,532,882 shares valued at $158.3 million. Similarly, Geneva Capital Management LLC raised its holdings by 7.8%, owning 6,114,895 shares worth $71.5 million after acquiring additional shares.
The Teacher Retirement System of Texas increased its position by 25.3%, owning 5,674,485 shares valued at $66.4 million. Ameriprise Financial Inc. boosted its stake by 27.1%, while Mackenzie Financial Corp increased its holdings by 47.7%. Notably, institutional investors and hedge funds control approximately 73.96% of Certara’s stock.
Company Financial Performance
Certara’s recent financial performance shows mixed results. The company reported quarterly earnings of $0.14 per share on November 6, surpassing consensus estimates of $0.11 by $0.03. Certara’s net margin stands at 2.62%, with a return on equity of 5.18%, and revenue for the quarter totaled $104.62 million, slightly above analyst expectations of $104.53 million.
For the fiscal year 2025, Certara has projected earnings per share between $0.450 and $0.470. Analysts expect the company to post $0.28 earnings per share for the current year.
Founded to provide software products and technology-enabled services for biosimulation in drug development, Certara operates both in the United States and internationally. The firm’s solutions assist in model-informed drug development, predicting pharmacokinetics and pharmacodynamics.
The recent downgrade and stock performance illustrate the ongoing volatility in the market for biotechnology firms. Investors and analysts will be closely monitoring future developments and performance indicators as Certara strives to navigate these challenges.
