Erasca (NASDAQ:ERAS) Shares Down 5.1% - Should You Sell?

Key Points

• Erasca shares fell 5.1% to about $13.98, with trading volume roughly 95% below the average session level.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $22.09, implying potential upside from the trading price.
• The clinical-stage biotech missed quarterly earnings expectations, reporting a loss of $0.14 per share versus the $0.11 consensus estimate; institutional investors own approximately 67.78% of the company.

Erasca, Inc. (NASDAQ:ERAS - Get Free Report)'s stock price dropped 5.1% during trading on Monday. The company traded as low as $14.17 and last traded at $13.9810. 271,521 shares traded hands during mid-day trading, a decline of 95% from the average session volume of 5,852,812 shares. The stock had previously closed at $14.74.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on ERAS shares. HC Wainwright increased their target price on Erasca from $18.00 to $22.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Bank of America upped their price target on shares of Erasca from $18.00 to $20.00 and gave the stock a "neutral" rating in a research note on Friday, August 14th. Guggenheim increased their price target on shares of Erasca from $20.00 to $21.00 and gave the company a "buy" rating in a report on Thursday, August 13th. HSBC set a $20.00 target price on shares of Erasca in a research report on Tuesday, July 14th. Finally, Morgan Stanley raised their price objective on Erasca from $12.00 to $21.00 and gave the company an "equal weight" rating in a research note on Monday, July 20th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $22.09.

Erasca Trading Down 3.4%

The business has a 50 day moving average of $16.85 and a 200-day moving average of $15.89. The stock has a market cap of $4.98 billion, a PE ratio of -14.96 and a beta of 0.61.

Erasca (NASDAQ:ERAS - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported ($0.14) earnings per share for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.03). On average, equities research analysts anticipate that Erasca, Inc. will post -0.49 EPS for the current fiscal year.

Institutional Trading of Erasca

A number of hedge funds have recently bought and sold shares of the company. Frazier Life Sciences Management L.P. boosted its holdings in shares of Erasca by 1.2% during the second quarter. Frazier Life Sciences Management L.P. now owns 24,975,188 shares of the company's stock worth $457,545,000 after purchasing an additional 300,000 shares during the last quarter. BlackRock Inc. purchased a new stake in Erasca in the second quarter valued at approximately $387,544,000. Vivo Capital LLC increased its position in Erasca by 31.0% during the first quarter. Vivo Capital LLC now owns 12,151,480 shares of the company's stock worth $196,611,000 after purchasing an additional 2,878,052 shares during the last quarter. Siren L.L.C. raised its stake in Erasca by 28.4% during the first quarter. Siren L.L.C. now owns 11,244,246 shares of the company's stock worth $181,932,000 after purchasing an additional 2,486,997 shares during the period. Finally, ARCH Venture Management LLC purchased a new position in shares of Erasca in the 2nd quarter worth $129,917,324. Institutional investors and hedge funds own 67.78% of the company's stock.

Erasca Company Profile

Erasca, Inc is a clinical-stage biopharmaceutical company focused on developing precision medicines for cancers driven by abnormal signaling in the RAS/MAPK pathway. The company's research and development activities target tumors with RAS mutations or other alterations that can promote cancer growth and resistance to treatment.

Erasca's pipeline has included naporafenib, an investigational pan-RAF inhibitor designed to block signaling downstream of RAF proteins, as well as other targeted therapies aimed at genetically defined cancer populations.

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