Erasca (NASDAQ:ERAS) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Erasca from hold to sell, even though several other brokers remain more bullish on the stock.
• Recent analyst activity has been mixed: 7 analysts rate it Buy, 1 Hold, and 2 Sell, with an average target price of $18.75. Piper Sandler, HC Wainwright, and JPMorgan all recently raised or maintained positive views.
• Erasca also reported a wider-than-expected quarterly loss, posting EPS of ($0.60) versus estimates of ($0.12), while insider stock sales and legal investigations have added to negative sentiment.

Erasca (NASDAQ:ERAS - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

A number of other brokerages have also issued reports on ERAS. Citigroup restated a "buy" rating on shares of Erasca in a research note on Friday, March 13th. Piper Sandler lifted their price objective on shares of Erasca from $11.00 to $18.00 and gave the company an "overweight" rating in a report on Friday, March 13th. Morgan Stanley set a $10.00 price target on shares of Erasca in a research note on Monday, January 26th. HC Wainwright boosted their price objective on shares of Erasca from $15.00 to $20.00 and gave the stock a "buy" rating in a research report on Friday, March 13th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Erasca from $24.00 to $25.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 18th. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $18.75.

Erasca Trading Down 1.4%

Shares of ERAS stock opened at $10.23 on Friday. Erasca has a 12-month low of $1.06 and a 12-month high of $24.28. The firm's 50 day moving average is $15.23 and its 200 day moving average is $9.57. The stock has a market capitalization of $3.18 billion, a P/E ratio of -11.00 and a beta of 0.68.

Erasca (NASDAQ:ERAS - Get Free Report) last issued its earnings results on Monday, May 11th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.48). As a group, equities analysts predict that Erasca will post -0.53 earnings per share for the current year.

Insiders Place Their Bets

In other Erasca news, insider Shannon Morris sold 20,000 shares of Erasca stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $15.04, for a total value of $300,800.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Ebun Garner sold 80,000 shares of the firm's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $16.40, for a total value of $1,312,000.00. Following the completion of the sale, the insider owned 25,076 shares in the company, valued at $411,246.40. The trade was a 76.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 14.20% of the company's stock.

Institutional Investors Weigh In On Erasca

Several institutional investors and hedge funds have recently added to or reduced their stakes in ERAS. BNP Paribas Financial Markets increased its position in Erasca by 58.0% in the 2nd quarter. BNP Paribas Financial Markets now owns 21,579 shares of the company's stock worth $27,000 after buying an additional 7,923 shares during the period. EP Wealth Advisors LLC bought a new stake in shares of Erasca during the second quarter valued at approximately $29,000. Russell Investments Group Ltd. acquired a new position in shares of Erasca during the third quarter valued at $31,000. SG Americas Securities LLC bought a new stake in Erasca in the third quarter valued at about $32,000. Finally, EntryPoint Capital LLC bought a new stake in Erasca in the fourth quarter valued at about $38,000. 67.78% of the stock is currently owned by institutional investors and hedge funds.

Erasca News Summary

Here are the key news stories impacting Erasca this week:

• Positive Sentiment: HC Wainwright reiterated a Buy rating and $20 price target on Erasca, indicating the firm still sees meaningful upside even after trimming near- and long-term EPS estimates.
• Positive Sentiment: Piper Sandler also remained positive on Erasca, another signal that some analysts continue to back the stock after recent volatility. Article Title
• Neutral Sentiment: Erasca was mentioned in a transcript from its presentation at the Bank of America Global Healthcare Conference 2026, which may keep investor attention on the company’s pipeline and strategy, but no major new catalyst was highlighted. Article Title
• Negative Sentiment: Multiple law firms, including Pomerantz, Kirby McInerney, and Bragar Eagel & Squire, announced investigations or shareholder alerts regarding possible securities-law violations at Erasca, which can weigh on sentiment and raise litigation concerns. Article Title
• Negative Sentiment: HC Wainwright cut EPS estimates for FY2026 through FY2030, reflecting a more cautious view on Erasca’s earnings trajectory after the company’s recent quarterly miss, which may be pressuring the stock.
• Negative Sentiment: A separate article highlighted that a hedge fund added to its Erasca position after the stock had already run sharply higher, which can reinforce concerns that some of the good news may already be priced in. Article Title

Erasca Company Profile

Erasca, Inc is a clinical‐stage biopharmaceutical company dedicated to the discovery and development of precision medicines for patients with cancer. The company focuses on small molecule therapeutics that target critical signaling pathways involved in tumor growth and survival, with a primary emphasis on inhibitors of the MAPK pathway. Erasca's approach is designed to deliver oral, targeted therapies that address both oncogene‐driven and immuno‐oncology indications, aiming to improve outcomes for patients with unmet medical needs.

Erasca's pipeline comprises multiple development candidates, including small molecule inhibitors engineered to disrupt key nodes in cancer cell signaling.

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