Certara (NASDAQ:CERT) Sets New 1-Year Low Following Weak Earnings

Certara, Inc. (NASDAQ:CERT) hit a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $6.04 and last traded at $6.4030, with a volume of 502587 shares. The stock had previously closed at $6.59.

The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.02). Certara had a return on equity of 5.18% and a net margin of 2.62%.The firm had revenue of $103.65 million during the quarter, compared to analysts’ expectations of $103.23 million. During the same period in the previous year, the company posted $0.15 earnings per share. The company’s quarterly revenue was up 3.2% compared to the same quarter last year. Certara has set its FY 2026 guidance at 0.440-0.480 EPS.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. KeyCorp reduced their price target on shares of Certara from $13.00 to $12.00 and set an “overweight” rating for the company in a research report on Thursday, January 8th. Morgan Stanley dropped their price objective on Certara from $16.00 to $12.00 and set an “equal weight” rating for the company in a research note on Thursday, December 18th. BMO Capital Markets initiated coverage on Certara in a research note on Thursday, November 13th. They issued a “market perform” rating and a $9.00 target price on the stock. Stephens lowered their price target on Certara from $15.00 to $12.00 and set an “overweight” rating on the stock in a report on Friday, December 12th. Finally, Rothschild & Co Redburn set a $10.00 price objective on Certara in a report on Friday, November 21st. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $12.82.

Hedge Funds Weigh In On Certara

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. boosted its stake in Certara by 2,733.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,975 shares of the company’s stock worth $26,000 after buying an additional 2,870 shares in the last quarter. First Horizon Corp purchased a new position in shares of Certara during the third quarter worth approximately $30,000. Versant Capital Management Inc boosted its stake in shares of Certara by 66.7% in the 3rd quarter. Versant Capital Management Inc now owns 2,881 shares of the company’s stock valued at $35,000 after purchasing an additional 1,153 shares in the last quarter. Osaic Holdings Inc. boosted its stake in shares of Certara by 50.7% in the 2nd quarter. Osaic Holdings Inc. now owns 3,491 shares of the company’s stock valued at $41,000 after purchasing an additional 1,175 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC purchased a new position in Certara in the 2nd quarter worth $59,000. 73.96% of the stock is currently owned by hedge funds and other institutional investors.

Certara Stock Performance

The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.09 and a current ratio of 2.09. The company has a market cap of $997.83 million, a PE ratio of 89.66 and a beta of 1.47. The business’s 50-day moving average is $8.44 and its 200 day moving average is $9.94.

About Certara

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.