FY2029 EPS Estimates for Scholar Rock Increased by Analyst

Key Points

• HC Wainwright raised its FY2029 EPS estimate for Scholar Rock to $0.40 from $0.33 and kept a Buy rating with a $65 price target. The firm also projected FY2030 EPS of $1.43.
• Scholar Rock reported a Q1 loss of $0.83 per share, slightly worse than the analyst consensus of a $0.82 loss and wider than the year-ago loss of $0.67 per share.
• Other analysts remain mostly positive on the stock, with multiple firms raising targets and the consensus rating sitting at Buy with an average $56 price target. However, CEO David Hallal and other insiders recently sold shares, including a tax-related sale by the CEO.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Free Report) - Analysts at HC Wainwright upped their FY2029 earnings estimates for shares of Scholar Rock in a note issued to investors on Friday, May 8th. HC Wainwright analyst A. Maldonado now expects that the company will earn $0.40 per share for the year, up from their previous estimate of $0.33. HC Wainwright has a "Buy" rating and a $65.00 price objective on the stock. The consensus estimate for Scholar Rock's current full-year earnings is ($3.11) per share. HC Wainwright also issued estimates for Scholar Rock's FY2030 earnings at $1.43 EPS.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.83) earnings per share for the quarter, missing analysts' consensus estimates of ($0.82) by ($0.01). During the same quarter in the prior year, the company earned ($0.67) earnings per share.

Other research analysts have also issued research reports about the company. Piper Sandler boosted their price target on Scholar Rock from $51.00 to $58.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 4th. BMO Capital Markets raised their price target on Scholar Rock from $50.00 to $70.00 and gave the company an "outperform" rating in a report on Wednesday, March 4th. Raymond James Financial restated a "strong-buy" rating on shares of Scholar Rock in a research note on Tuesday, March 3rd. Barclays upped their price objective on shares of Scholar Rock from $53.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Scholar Rock in a research report on Tuesday, April 21st. Five research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, Scholar Rock currently has an average rating of "Buy" and a consensus target price of $56.00.

Scholar Rock Stock Performance

Shares of SRRK stock opened at $48.39 on Monday. Scholar Rock has a 12-month low of $27.07 and a 12-month high of $51.63. The company has a debt-to-equity ratio of 0.41, a current ratio of 6.95 and a quick ratio of 6.95. The firm has a market capitalization of $5.80 billion, a price-to-earnings ratio of -13.48 and a beta of 0.70. The business has a 50 day simple moving average of $46.15 and a 200 day simple moving average of $43.00.

Hedge Funds Weigh In On Scholar Rock

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. IFP Advisors Inc lifted its holdings in shares of Scholar Rock by 294.1% in the fourth quarter. IFP Advisors Inc now owns 603 shares of the company's stock valued at $27,000 after purchasing an additional 450 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in shares of Scholar Rock during the fourth quarter valued at $30,000. Summit Securities Group LLC acquired a new position in Scholar Rock during the fourth quarter valued at $31,000. Ramirez Asset Management Inc. acquired a new position in Scholar Rock during the third quarter valued at $37,000. Finally, EverSource Wealth Advisors LLC lifted its stake in Scholar Rock by 151.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 872 shares of the company's stock worth $38,000 after acquiring an additional 525 shares in the last quarter. 91.08% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Scholar Rock

In other news, CEO David Hallal sold 30,615 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $49.57, for a total transaction of $1,517,585.55. Following the completion of the sale, the chief executive officer owned 1,639,034 shares in the company, valued at approximately $81,246,915.38. This represents a 1.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mo Qatanani sold 8,484 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $47.07, for a total value of $399,341.88. Following the completion of the transaction, the insider owned 98,445 shares of the company's stock, valued at $4,633,806.15. This trade represents a 7.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 102,736 shares of company stock valued at $4,977,900. Corporate insiders own 13.30% of the company's stock.

Scholar Rock Company Profile

Scholar Rock is a clinical-stage biotechnology company focused on the discovery and development of protein therapeutics that selectively target growth factors involved in disease processes. The company's research platform is designed to modulate endogenous growth factor activation and signaling with high specificity, aiming to restore normal biological function across a range of disorders. Scholar Rock's approach is distinguished by its emphasis on engineering antibodies and biologics that interact with growth factor precursors or latent complexes rather than the active form, potentially offering improved safety and efficacy profiles.

The company's lead program, SRK-015 (appercept), is an investigational monoclonal antibody targeting the activation of latent myostatin proproteins and is being evaluated for the treatment of spinal muscular atrophy (SMA).

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