Shares of Certara, Inc. (NASDAQ:CERT) hit a new 52-week low on Saturday, trading as low as $8.47 before closing at $8.67. This decline followed a downgrade from Barclays, which lowered its price target from $16.00 to $14.00. Despite this adjustment, Barclays maintains an “overweight” rating on the stock. The stock’s trading volume reached over 9 million shares during the session, a significant increase from its previous close of $11.27.
Analysts have been actively revising their outlook on Certara in recent weeks. On August 7, UBS Group reduced its price target from $17.50 to $15.00 while keeping a “buy” rating. Zacks Research upgraded Certara from a “strong sell” to a “hold” rating on September 5. Meanwhile, Weiss Ratings reiterated a “sell (d)” rating on October 8, coinciding with KeyCorp’s increase of its target price from $15.00 to $16.00, maintaining an “overweight” rating. Craig Hallum also initiated coverage with a “buy” rating and a $16.00 price target on September 29.
Among analysts, sentiment appears mixed. Six have rated Certara as a “buy,” five as a “hold,” and one as a “sell.” According to MarketBeat data, the stock currently holds an average rating of “hold” with an average target price of $15.38.
Institutional Investors Adjust Positions
Recent changes in institutional ownership may reflect growing interest or concern about Certara’s future. Wasatch Advisors LP significantly increased its stake in the company by 45.7% during the second quarter, now holding over 13.5 million shares valued at approximately $158.3 million. Other notable adjustments include Geneva Capital Management, which raised its holdings by 7.8%, and Teacher Retirement System of Texas, boosting its position by 25.3%.
Ameriprise Financial also increased its stake by 27.1%, while Mackenzie Financial raised its holdings by 47.7%. Overall, institutional investors and hedge funds now own nearly 74% of Certara’s stock.
Certara’s Financial Performance
Certara reported its quarterly earnings on November 6, revealing earnings per share of $0.14, surpassing analyst expectations of $0.11. The company achieved a revenue of $104.62 million, slightly above the anticipated $104.53 million. Certara’s net margin stands at 2.62%, with a return on equity of 5.18%. The firm has set its fiscal year 2025 guidance at an earnings per share of $0.450 to $0.470.
Certara operates in the biosimulation sector, providing software products and technology-enabled services that support drug discovery, preclinical and clinical research, regulatory submissions, and market access. The company focuses on model-informed drug development and solutions to predict pharmacokinetics and pharmacodynamics.
As the market continues to react to analyst evaluations and institutional investments, Certara’s future remains closely watched by investors and analysts alike.
