Erasca (NASDAQ:ERAS) Hits New 1-Year High - Should You Buy?

Key Points

• Erasca shares hit a new 52-week high intraday at $18.20 on heavy volume, and Wall Street sentiment is broadly positive with an average rating of Moderate Buy and an average price target of $16.63 (several firms raised targets, including JPMorgan to $25).
• The company remains unprofitable (market cap $5.32B, P/E -38.91) but reported a slight quarterly beat (EPS -$0.10 vs. -$0.11), while analysts expect fiscal-year EPS of about -0.73.
• Corporate insiders sold 220,000 shares (~$2.28M) last quarter—including large sales by the general counsel—though insiders still own 14.40% of the stock and institutional investors hold 67.78%.

Erasca, Inc. (NASDAQ:ERAS - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $18.20 and last traded at $17.12, with a volume of 5250452 shares traded. The stock had previously closed at $17.81.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. Citigroup reissued a "buy" rating on shares of Erasca in a report on Friday, March 13th. Mizuho increased their target price on Erasca from $16.00 to $19.00 and gave the stock an "outperform" rating in a report on Friday, March 13th. Guggenheim increased their target price on Erasca from $12.00 to $20.00 and gave the stock a "buy" rating in a report on Monday, March 16th. JPMorgan Chase & Co. increased their target price on Erasca from $24.00 to $25.00 and gave the stock an "overweight" rating in a report on Wednesday, March 18th. Finally, Stifel Nicolaus set a $20.00 target price on Erasca in a report on Tuesday, March 10th. Seven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Erasca presently has an average rating of "Moderate Buy" and an average price target of $16.63.

Erasca Trading Down 3.9%

The firm has a market capitalization of $5.32 billion, a P/E ratio of -38.91 and a beta of 1.04. The firm has a 50-day moving average of $13.66 and a two-hundred day moving average of $7.17.

Erasca (NASDAQ:ERAS - Get Free Report) last announced its quarterly earnings data on Thursday, March 19th. The company reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.01. On average, sell-side analysts anticipate that Erasca, Inc. will post -0.73 EPS for the current fiscal year.

Insider Activity

In other Erasca news, insider Shannon Morris sold 20,000 shares of the stock in a transaction dated Wednesday, March 4th. The stock was 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 available through this link. Also, General Counsel Ebun Garner sold 120,000 shares of the stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $5.59, for a total value of $670,800.00. Following the completion of the transaction, the general counsel owned 25,076 shares of the company's stock, valued at $140,174.84. This represents a 82.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 220,000 shares of company stock valued at $2,283,600 over the last quarter. Corporate insiders own 14.40% of the company's stock.

Hedge Funds Weigh In On Erasca

Several large investors have recently bought and sold shares of ERAS. BNP Paribas Financial Markets raised its position in Erasca by 58.0% in the second quarter. BNP Paribas Financial Markets now owns 21,579 shares of the company's stock valued at $27,000 after purchasing an additional 7,923 shares during the last quarter. EP Wealth Advisors LLC bought a new position in shares of Erasca during the second quarter worth about $29,000. Russell Investments Group Ltd. bought a new position in shares of Erasca during the third quarter worth about $31,000. SG Americas Securities LLC bought a new position in shares of Erasca during the third quarter worth about $32,000. Finally, Crowley Wealth Management Inc. bought a new position in shares of Erasca during the third quarter worth about $33,000. 67.78% of the stock is currently owned by institutional investors.

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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