Erasca (NASDAQ:ERAS) Shares Gap Down - What's Next?

Key Points

• Shares gapped down at the open (from $21.49 to $20.70) and were last around $19.28 on heavy volume (3.91M); the company has a $6.08B market cap, 50‑day/200‑day moving averages of $15.85/$8.84, and a negative P/E (~-45).
• Analysts have recently boosted targets (range roughly $10 to $30) and the consensus rating is a Moderate Buy with an average price target of $17.88 (7 Buys, 1 Hold, 2 Sells).
• Insiders have been selling: Ebun Garner sold 80,000 shares under a 10b5‑1 plan (reducing their stake by ~76%) and Shannon Morris sold 20,000 shares; insiders still own about 14.4% of the company.

Shares of Erasca, Inc. (NASDAQ:ERAS - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $21.49, but opened at $20.70. Erasca shares last traded at $19.2750, with a volume of 3,910,383 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Piper Sandler upped their price target on shares of Erasca from $11.00 to $18.00 and gave the company an "overweight" rating in a research report on Friday, March 13th. Stifel Nicolaus boosted their target price on shares of Erasca from $20.00 to $30.00 and gave the company a "buy" rating in a research note on Monday. HC Wainwright increased their target price on Erasca from $15.00 to $20.00 and gave the company a "buy" rating in a report on Friday, March 13th. Citigroup reaffirmed a "buy" rating on shares of Erasca in a research report on Friday, March 13th. Finally, Morgan Stanley set a $10.00 price target on Erasca in a report on Monday, January 26th. Seven analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $17.88.

Erasca Price Performance

The firm's fifty day moving average is $15.85 and its 200 day moving average is $8.84. The firm has a market capitalization of $6.08 billion, a price-to-earnings ratio of -44.96 and a beta of 1.04.

Erasca (NASDAQ:ERAS - Get Free Report) last released its quarterly earnings data on Thursday, March 12th. The company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.01. Equities research analysts forecast that Erasca, Inc. will post -0.51 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Ebun Garner sold 80,000 shares of the company'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 transaction, the insider directly owned 25,076 shares of the company's stock, valued at approximately $411,246.40. This represents a 76.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon Morris sold 20,000 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $15.04, for a total value of $300,800.00. The SEC filing for this sale provides additional information. Corporate insiders own 14.40% of the company's stock.

Institutional Investors Weigh In On Erasca

A number of hedge funds and other institutional investors have recently made changes to their positions in ERAS. BNP Paribas Financial Markets grew its stake in shares of Erasca by 58.0% in the 2nd quarter. BNP Paribas Financial Markets now owns 21,579 shares of the company's stock valued at $27,000 after buying an additional 7,923 shares in the last quarter. EP Wealth Advisors LLC bought a new position in Erasca during the second quarter valued at approximately $29,000. Russell Investments Group Ltd. acquired a new stake in Erasca in the third quarter valued at approximately $31,000. SG Americas Securities LLC bought a new stake in Erasca in the third quarter worth approximately $32,000. Finally, Crowley Wealth Management Inc. bought a new stake in Erasca in the third quarter worth approximately $33,000. 67.78% of the stock is owned by hedge funds and other 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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