Scholar Rock Holding Corporation (NASDAQ:SRRK) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Analysts maintain a “Buy” consensus on Scholar Rock, with 10 buy, four strong-buy, one hold and one sell rating. The average 12-month price target is $58.77, modestly above the reported $55.41 share price.
• Scholar Rock shares have traded between $27.07 and $61.76 over the past year, with a market capitalization of approximately $6.75 billion. The company reported quarterly EPS of -$0.84, in line with analyst expectations.
• Institutional ownership is high at 91.08%, with major investors including BlackRock, Redmile Group and Siren increasing or establishing positions. Insiders have sold shares recently, primarily to cover tax withholding obligations tied to vested equity awards.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) has been given a consensus rating of "Buy" by the sixteen research firms that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, ten have given a buy rating and four have given a strong buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $58.7692.

Several brokerages have recently weighed in on SRRK. BMO Capital Markets reiterated an "outperform" rating on shares of Scholar Rock in a report on Thursday. Weiss Ratings restated a "sell (d-)" rating on shares of Scholar Rock in a report on Friday, July 17th. JPMorgan Chase & Co. raised their target price on shares of Scholar Rock from $56.00 to $63.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. Citigroup reissued a "buy" rating on shares of Scholar Rock in a research report on Monday. Finally, HC Wainwright downgraded shares of Scholar Rock from a "buy" rating to a "neutral" rating in a research note on Tuesday, September 8th.

Scholar Rock Price Performance

Shares of NASDAQ SRRK opened at $55.41 on Monday. The company has a fifty day moving average price of $53.56 and a 200 day moving average price of $49.53. The firm has a market cap of $6.75 billion, a PE ratio of -16.06 and a beta of 0.67. The company has a current ratio of 7.02, a quick ratio of 7.02 and a debt-to-equity ratio of 0.77. Scholar Rock has a 1-year low of $27.07 and a 1-year high of $61.76.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.84) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.84). During the same period last year, the company posted ($0.98) earnings per share. Research analysts predict that Scholar Rock will post -3.23 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Michael Gilman sold 2,544 shares of the company's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.87, for a total transaction of $137,045.28. Following the sale, the director owned 59,511 shares in the company, valued at approximately $3,205,857.57. This represents a 4.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Joshua Reed sold 3,053 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $53.74, for a total value of $164,068.22. Following the transaction, the director directly owned 19,518 shares of the company's stock, valued at $1,048,897.32. This trade represents a 13.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 17,149 shares of company stock valued at $923,108 in the last quarter. 10.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Scholar Rock

Several large investors have recently made changes to their positions in SRRK. Siren L.L.C. raised its position in Scholar Rock by 17.0% during the fourth quarter. Siren L.L.C. now owns 10,825,013 shares of the company's stock worth $476,842,000 after acquiring an additional 1,575,008 shares in the last quarter. BlackRock Inc. bought a new position in shares of Scholar Rock in the 2nd quarter valued at about $522,175,000. Redmile Group LLC grew its position in shares of Scholar Rock by 73.7% in the 1st quarter. Redmile Group LLC now owns 9,066,621 shares of the company's stock valued at $445,715,000 after acquiring an additional 3,845,775 shares during the period. Wellington Management Group LLP increased its stake in shares of Scholar Rock by 26.7% during the 4th quarter. Wellington Management Group LLP now owns 5,759,428 shares of the company's stock worth $253,703,000 after purchasing an additional 1,213,541 shares during the last quarter. Finally, California State Teachers Retirement System increased its stake in shares of Scholar Rock by 6,187.6% during the 2nd quarter. California State Teachers Retirement System now owns 4,710,420 shares of the company's stock worth $259,073,000 after purchasing an additional 4,635,504 shares during the last quarter. Institutional investors and hedge funds own 91.08% of the company's stock.

Scholar Rock Company Profile

Scholar Rock, Inc is a biopharmaceutical company focused on developing medicines that selectively target growth factors in their latent forms. The company's approach is designed to modulate the activation of growth factors in specific tissues, with the goal of addressing diseases in which these biological pathways contribute to impaired function or abnormal tissue growth.

Scholar Rock's lead program is apitegromab, a monoclonal antibody designed to inhibit the activation of myostatin. The company has studied apitegromab as a potential treatment for spinal muscular atrophy, a genetic neuromuscular disorder that causes progressive muscle weakness and loss of motor function.

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