Spruce Street Capital LP Makes New Investment in Erasca, Inc. $ERAS

Key Points

• Spruce Street Capital LP opened a new position in Erasca, buying 3.89 million shares valued at about $14.5 million. The stake makes Erasca its 9th-largest holding and represents roughly 1.26% of the company.
• Erasca shares rose 2.7% and recently traded around $14.43, but the stock remains volatile after ranging from a 52-week low of $1.21 to a high of $24.28. The company still carries a negative P/E and a beta below 1.
• The company faces legal and clinical overhangs, including securities class action notices tied to patent-infringement and patient-death allegations around ERAS-0015. Erasca also recently reported a quarterly loss of $0.60 per share, worse than analysts expected.

Spruce Street Capital LP acquired a new position in shares of Erasca, Inc. (NASDAQ:ERAS - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 3,889,632 shares of the company's stock, valued at approximately $14,469,000. Erasca makes up 4.8% of Spruce Street Capital LP's holdings, making the stock its 9th biggest holding. Spruce Street Capital LP owned approximately 1.26% of Erasca as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of the company. Neuberger Berman Group LLC lifted its holdings in Erasca by 11.3% during the 4th quarter. Neuberger Berman Group LLC now owns 12,358 shares of the company's stock worth $46,000 after buying an additional 1,253 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in Erasca by 25.7% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 13,787 shares of the company's stock worth $51,000 after buying an additional 2,820 shares in the last quarter. ProShare Advisors LLC lifted its holdings in Erasca by 11.1% during the 4th quarter. ProShare Advisors LLC now owns 44,216 shares of the company's stock worth $164,000 after buying an additional 4,430 shares in the last quarter. Captrust Financial Advisors lifted its holdings in Erasca by 13.6% during the 2nd quarter. Captrust Financial Advisors now owns 54,111 shares of the company's stock worth $69,000 after buying an additional 6,486 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its holdings in Erasca by 58.0% during 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 in the last quarter. Institutional investors and hedge funds own 67.78% of the company's stock.

Erasca Stock Up 2.7%

ERAS stock opened at $14.43 on Tuesday. The business's fifty day moving average is $14.15 and its 200-day moving average is $11.10. The company has a market cap of $4.49 billion, a P/E ratio of -15.52 and a beta of 0.73. Erasca, Inc. has a twelve month low of $1.21 and a twelve month high of $24.28.

Erasca (NASDAQ:ERAS - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The company reported ($0.60) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.48). Research analysts anticipate that Erasca, Inc. will post -0.55 earnings per share for the current fiscal year.

Insider Activity at Erasca

In related 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 completion of the sale, the insider owned 25,076 shares in the company, valued at $411,246.40. This represents a 76.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 14.20% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Erasca

Here are the key news stories impacting Erasca this week:

• Positive Sentiment: No clearly positive company-specific catalysts were reported in the latest batch of articles.
• Neutral Sentiment: Multiple law firms, including Rosen, Robbins LLP, Faruqi & Faruqi, Howard G. Smith, and Robbins Geller, issued reminders that investors who bought Erasca stock during the class period may seek lead-plaintiff status, with a deadline of August 10, 2026. Article Title
• Neutral Sentiment: Another notice repeated the pending lawsuit details and class period, reinforcing legal overhang rather than adding new operational news. Article Title
• Negative Sentiment: The most damaging report said Erasca faces a securities class action after a sharp prior selloff linked to allegations that Revolution Medicines accused the company of patent infringement over ERAS-0015 and that a patient died after receiving the candidate, adding both litigation and clinical-risk concerns. Article Title
• Negative Sentiment: Additional investor alerts alleged Erasca concealed patent-infringement risk and improper preclinical comparisons while raising capital, which could weigh on investor confidence and keep the stock under pressure. Article Title

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Mizuho reduced their price objective on Erasca from $28.00 to $26.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Bank of America raised Erasca from an "underperform" rating to a "neutral" rating and increased their price target for the company from $9.00 to $16.00 in a research note on Thursday, June 4th. HC Wainwright increased their price target on Erasca from $15.00 to $20.00 and gave the company a "buy" rating in a research note on Friday, March 13th. Piper Sandler increased their price target on Erasca from $11.00 to $18.00 and gave the company an "overweight" rating in a research note on Friday, March 13th. Finally, Wall Street Zen downgraded Erasca from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Seven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $20.11.

Erasca 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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