Erasca (NASDAQ:ERAS) Stock Price Up 9.9% - Still a Buy?

Key Points

• Shares jumped 9.9% to about $17.93 on Tuesday, but trading was thin at roughly 698,361 shares—about an 89% decline from the stock's average daily volume.
• Several analysts raised price targets (e.g., Piper Sandler $18, Guggenheim $20, HC Wainwright $20, Mizuho $19) and the consensus rating is a Moderate Buy with an average target of $16.63 (7 Buy, 1 Hold, 2 Sell).
• Insiders have been selling (Ebun Garner sold 80,000 shares under a Rule 10b5-1 plan) while institutions own ~67.8% of the stock; Erasca is a clinical‑stage biotech with a $5.55B market cap and a negative P/E of -40.7.

Erasca, Inc. (NASDAQ:ERAS - Get Free Report) shares rose 9.9% during mid-day trading on Tuesday . The stock traded as high as $17.21 and last traded at $17.9260. Approximately 698,361 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 6,322,667 shares. The stock had previously closed at $16.31.

Analyst Ratings Changes

ERAS has been the subject of several research analyst reports. Morgan Stanley set a $10.00 price objective on Erasca in a research report on Monday, January 26th. Piper Sandler boosted their target price on Erasca from $11.00 to $18.00 and gave the company an "overweight" rating in a research note on Friday, March 13th. Guggenheim boosted their target price on Erasca from $12.00 to $20.00 and gave the company a "buy" rating in a research note on Monday, March 16th. HC Wainwright boosted their target price on Erasca from $15.00 to $20.00 and gave the company a "buy" rating in a research note on Friday, March 13th. Finally, Mizuho boosted their target price on Erasca from $16.00 to $19.00 and gave the company an "outperform" rating in a research note on Friday, March 13th. Seven investment 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.com, Erasca has an average rating of "Moderate Buy" and a consensus target price of $16.63.

Erasca Stock Performance

The firm has a market capitalization of $5.55 billion, a price-to-earnings ratio of -40.70 and a beta of 1.04. The business has a fifty day moving average of $14.31 and a two-hundred day moving average of $7.70.

Erasca (NASDAQ:ERAS - Get Free Report) last issued its quarterly earnings data on Thursday, March 19th. The company reported ($0.10) EPS for the quarter, beating analysts' consensus estimates of ($0.11) by $0.01. As a group, sell-side analysts predict that Erasca, Inc. will post -0.73 EPS for the current fiscal year.

Insider Buying and Selling at Erasca

In related news, insider Ebun Garner sold 80,000 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $16.40, for a total value of $1,312,000.00. Following the sale, the insider directly owned 25,076 shares in the company, valued at $411,246.40. This represents a 76.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon Morris sold 20,000 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $15.04, for a total value of $300,800.00. Additional details regarding this sale are available in the official SEC disclosure. 14.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Erasca

Hedge funds have recently added to or reduced their stakes in the business. Spruce Street Capital LP purchased a new position in shares of Erasca during the 4th quarter valued at $14,469,000. Vivo Capital LLC lifted its holdings in Erasca by 37.2% during the 3rd quarter. Vivo Capital LLC now owns 9,273,428 shares of the company's stock worth $20,216,000 after purchasing an additional 2,516,672 shares in the last quarter. State Street Corp lifted its holdings in Erasca by 53.2% during the 4th quarter. State Street Corp now owns 6,174,642 shares of the company's stock worth $22,970,000 after purchasing an additional 2,145,386 shares in the last quarter. Paradigm Biocapital Advisors LP lifted its holdings in Erasca by 13.9% during the 3rd quarter. Paradigm Biocapital Advisors LP now owns 13,560,017 shares of the company's stock worth $29,561,000 after purchasing an additional 1,652,835 shares in the last quarter. Finally, VR Adviser LLC lifted its holdings in Erasca by 10.1% during the 2nd quarter. VR Adviser LLC now owns 17,857,083 shares of the company's stock worth $22,678,000 after purchasing an additional 1,640,867 shares in the last quarter. 67.78% of the stock is currently owned by institutional investors.

About Erasca

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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