Simulations Plus (NASDAQ:SLP) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Simulations Plus (NASDAQ:SLP) from a hold rating to a sell rating in a report issued on Saturday morning, Zacks.com reports.

According to Zacks, “Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. They have two other businesses, Words+, Inc. and FutureLab, which are based on its proprietary software technologies. “

A number of other research firms also recently issued reports on SLP. Craig Hallum assumed coverage on shares of Simulations Plus in a research report on Monday, January 6th. They set a buy rating and a $40.00 price target for the company. ValuEngine downgraded shares of Simulations Plus from a buy rating to a hold rating in a research report on Wednesday, October 2nd. Finally, BidaskClub downgraded shares of Simulations Plus from a hold rating to a sell rating in a research report on Saturday, January 4th. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the stock. The stock has an average rating of Hold and an average price target of $39.00.

SLP stock opened at $33.78 on Friday. The firm has a 50 day moving average of $32.81 and a 200-day moving average of $34.18. Simulations Plus has a 12-month low of $18.21 and a 12-month high of $41.95. The company has a current ratio of 4.10, a quick ratio of 4.10 and a debt-to-equity ratio of 0.01. The company has a market cap of $587.98 million, a price-to-earnings ratio of 70.38 and a beta of -0.41.

Simulations Plus (NASDAQ:SLP) last posted its quarterly earnings results on Thursday, January 9th. The technology company reported $0.11 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.10 by $0.01. Simulations Plus had a net margin of 25.41% and a return on equity of 24.84%. The company had revenue of $9.40 million during the quarter, compared to the consensus estimate of $8.37 million. Sell-side analysts forecast that Simulations Plus will post 0.54 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, February 3rd. Investors of record on Monday, January 27th will be given a dividend of $0.06 per share. The ex-dividend date is Friday, January 24th. This represents a $0.24 annualized dividend and a dividend yield of 0.71%. Simulations Plus’s dividend payout ratio is currently 50.00%.

In related news, Director Walter S. Woltosz sold 24,000 shares of Simulations Plus stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $34.67, for a total transaction of $832,080.00. Following the completion of the transaction, the director now directly owns 5,040,327 shares in the company, valued at approximately $174,748,137.09. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 28.96% of the company’s stock.

Several institutional investors have recently modified their holdings of the stock. Wells Fargo & Company MN raised its holdings in Simulations Plus by 10.0% in the 2nd quarter. Wells Fargo & Company MN now owns 45,738 shares of the technology company’s stock valued at $1,307,000 after acquiring an additional 4,143 shares during the last quarter. Janus Henderson Group PLC acquired a new position in Simulations Plus in the 2nd quarter valued at $238,000. Prudential Financial Inc. acquired a new position in Simulations Plus in the 2nd quarter valued at $1,353,000. Oppenheimer Asset Management Inc. raised its holdings in Simulations Plus by 5.9% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 4,783 shares of the technology company’s stock valued at $137,000 after acquiring an additional 265 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its holdings in Simulations Plus by 9.6% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 28,039 shares of the technology company’s stock valued at $801,000 after acquiring an additional 2,446 shares during the last quarter. Hedge funds and other institutional investors own 45.31% of the company’s stock.

About Simulations Plus

Simulations Plus, Inc develops drug discovery and development software for mechanistic modeling and simulation, and machine-learning-based prediction of properties of molecules from their structure worldwide. The company offers GastroPlus, which simulates the absorption, pharmacokinetics (PK), pharmacodynamics, and drug-drug interactions of compounds administered to humans and animals; DDDPlus that simulates in vitro laboratory experiments that measure the rate of dissolution of the drug and additives in a dosage form; and MembranePlus, which simulates laboratory experiments.

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