Scholar Rock Holding Corporation (NASDAQ:SRRK) Given Average Recommendation of "Buy" by Brokerages

Key Points

• Scholar Rock has a consensus analyst rating of “Buy” from 18 brokerages, with an average 12-month price target of $56. Several firms recently raised their targets, including BMO Capital Markets to $70 and HC Wainwright to $65.
• Top executives sold shares in mid-April, but the company says the transactions were made to cover tax withholding obligations tied to equity award vesting. COO Keith Woods and CEO David Hallal both reduced their holdings slightly.
• The biotech company recently reported a Q1 EPS loss of $0.83, missing estimates by a penny, and analysts expect a full-year loss of 3.11 per share. Scholar Rock’s lead program, SRK-015, is being studied for spinal muscular atrophy.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) has received a consensus rating of "Buy" from the eighteen brokerages that are covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating, twelve have assigned a buy rating and five have given a strong buy rating to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $56.00.

SRRK has been the topic of a number of research reports. BMO Capital Markets increased their target price on shares of Scholar Rock from $50.00 to $70.00 and gave the stock an "outperform" rating in a report on Wednesday, March 4th. Truist Financial lifted their price target on shares of Scholar Rock from $44.00 to $55.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Citigroup boosted their price objective on shares of Scholar Rock from $55.00 to $58.00 and gave the company a "buy" rating in a research report on Wednesday, March 4th. Wedbush increased their price objective on shares of Scholar Rock from $56.00 to $58.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 1st. Finally, HC Wainwright lifted their target price on Scholar Rock from $58.00 to $65.00 and gave the company a "buy" rating in a research note on Friday.

Insiders Place Their Bets

In related news, COO Keith Woods sold 10,220 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $49.57, for a total transaction of $506,605.40. Following the completion of the transaction, the chief operating officer owned 620,055 shares in the company, valued at $30,736,126.35. The trade was a 1.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Hallal sold 30,615 shares of the company's stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $49.57, for a total value of $1,517,585.55. Following the transaction, the chief executive officer owned 1,639,034 shares of the company's stock, valued at approximately $81,246,915.38. The trade was a 1.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 102,736 shares of company stock worth $4,977,900. 13.30% of the stock is currently owned by insiders.

Institutional Trading of Scholar Rock

Large investors have recently modified their holdings of the company. IFP Advisors Inc boosted its stake in Scholar Rock by 294.1% during the 4th quarter. IFP Advisors Inc now owns 603 shares of the company's stock valued at $27,000 after purchasing an additional 450 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in shares of Scholar Rock during the fourth quarter valued at approximately $30,000. Summit Securities Group LLC acquired a new position in shares of Scholar Rock during the fourth quarter worth approximately $31,000. EverSource Wealth Advisors LLC grew its holdings 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 buying an additional 525 shares in the last quarter. Finally, Hilton Head Capital Partners LLC bought a new stake in Scholar Rock during the 4th quarter valued at $44,000. Institutional investors and hedge funds own 91.08% of the company's stock.

Scholar Rock Price Performance

Shares of SRRK opened at $48.35 on Tuesday. Scholar Rock has a 52 week low of $27.07 and a 52 week high of $51.63. The company has a current ratio of 6.95, a quick ratio of 6.95 and a debt-to-equity ratio of 0.41. The firm has a market cap of $5.79 billion, a price-to-earnings ratio of -13.47 and a beta of 0.70. The stock has a 50 day moving average of $46.25 and a 200-day moving average of $43.28.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.83) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.82) by ($0.01). During the same quarter last year, the business earned ($0.67) earnings per share. As a group, analysts forecast that Scholar Rock will post -3.11 EPS for the current year.

About Scholar Rock

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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