Bank of America Begins Coverage on Scholar Rock (NASDAQ:SRRK)

Key Points

• Bank of America has initiated coverage on Scholar Rock (NASDAQ:SRRK) with a "buy" rating and a price target of $53.00, indicating a potential upside of nearly 37% from its previous close.
• Scholar Rock's most recent quarterly earnings report showed a loss of ($0.98) per share, missing analyst expectations, and reflecting a significant increase in losses compared to the same period last year.
• Despite mixed ratings from other analysts, the stock currently holds a consensus rating of "Buy" with a target price averaging $47.00, while institutional investors own approximately 91% of the shares.

Bank of America assumed coverage on shares of Scholar Rock (NASDAQ:SRRK - Get Free Report) in a note issued to investors on Thursday,Benzinga reports. The brokerage set a "buy" rating and a $53.00 price target on the stock. Bank of America's price objective would suggest a potential upside of 36.99% from the stock's previous close.

Other research analysts also recently issued reports about the company. HC Wainwright dropped their price target on Scholar Rock from $50.00 to $44.00 and set a "buy" rating on the stock in a research note on Tuesday, September 23rd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Scholar Rock in a research note on Wednesday. Barclays dropped their price target on Scholar Rock from $45.00 to $44.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 24th. Raymond James Financial set a $53.00 price target on Scholar Rock and gave the stock a "strong-buy" rating in a research note on Wednesday, July 30th. Finally, Leerink Partners assumed coverage on Scholar Rock in a report on Monday, September 15th. They set an "outperform" rating and a $51.00 price objective for the company. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $47.00.

Scholar Rock Stock Down 2.1%

Shares of NASDAQ:SRRK opened at $38.69 on Thursday. The company has a market capitalization of $3.72 billion, a price-to-earnings ratio of -13.30 and a beta of 0.42. The company has a debt-to-equity ratio of 0.21, a current ratio of 6.33 and a quick ratio of 6.33. The business's 50-day moving average is $33.92 and its 200-day moving average is $33.27. Scholar Rock has a 1 year low of $22.71 and a 1 year high of $46.98.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.98) earnings per share for the quarter, missing analysts' consensus estimates of ($0.66) by ($0.32). During the same period last year, the business earned ($0.60) earnings per share. Equities research analysts predict that Scholar Rock will post -2.42 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Mo Qatanani sold 3,353 shares of the company's stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $30.67, for a total value of $102,836.51. Following the completion of the transaction, the insider directly owned 108,964 shares of the company's stock, valued at $3,341,925.88. This represents a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Jeffrey S. Flier sold 11,136 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $40.02, for a total value of $445,662.72. Following the completion of the transaction, the director directly owned 24,070 shares of the company's stock, valued at approximately $963,281.40. This represents a 31.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 18,673 shares of company stock valued at $687,751. Insiders own 13.30% of the company's stock.

Hedge Funds Weigh In On Scholar Rock

Several institutional investors and hedge funds have recently bought and sold shares of SRRK. CWM LLC grew its holdings in Scholar Rock by 152.8% during the first quarter. CWM LLC now owns 996 shares of the company's stock valued at $32,000 after purchasing an additional 602 shares during the period. Federated Hermes Inc. bought a new position in Scholar Rock during the first quarter valued at $71,000. GF Fund Management CO. LTD. grew its holdings in Scholar Rock by 21.9% during the first quarter. GF Fund Management CO. LTD. now owns 2,396 shares of the company's stock valued at $77,000 after purchasing an additional 430 shares during the period. Strs Ohio bought a new position in Scholar Rock during the first quarter valued at $77,000. Finally, Elevation Point Wealth Partners LLC bought a new position in Scholar Rock during the second quarter valued at $94,000. 91.08% of the stock is owned by institutional investors.

Scholar Rock Company Profile

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies.

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