Scholar Rock Holding Corporation (NASDAQ:SRRK) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Scholar Rock (NASDAQ: SRRK) has a consensus analyst rating of “Buy” from 17 covering firms, with an average 1-year price target of $56.00.
• Recent analyst updates were mixed but generally positive, including price target hikes from BMO Capital Markets and Citigroup, while Weiss Ratings reiterated a sell rating.
• The stock recently traded near its 52-week high at $55.00, after reporting a quarterly loss of ($0.83) per share, slightly worse than estimates; insider selling also occurred, though the sales were tied to tax withholding on equity awards.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) has earned a consensus recommendation of "Buy" from the seventeen research firms that are covering the stock, MarketBeat reports. One analyst has rated the stock with a sell recommendation, twelve have issued a buy recommendation and four have assigned a strong buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $56.00.

A number of research analysts recently weighed in on the company. BMO Capital Markets upped their price objective on Scholar Rock from $50.00 to $70.00 and gave the stock an "outperform" rating in a report on Wednesday, March 4th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Scholar Rock in a report on Tuesday, April 21st. Citigroup upped their price objective on Scholar Rock from $55.00 to $58.00 and gave the stock a "buy" rating in a report on Wednesday, March 4th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Scholar Rock in a report on Thursday, June 18th. Finally, Canaccord Genuity Group assumed coverage on Scholar Rock in a report on Monday, April 20th. They set a "buy" rating and a $62.00 price objective on the stock.

Scholar Rock Trading Up 0.1%

Shares of SRRK stock opened at $55.00 on Wednesday. The business's fifty day moving average price is $48.04 and its 200 day moving average price is $46.42. Scholar Rock has a 1-year low of $27.07 and a 1-year high of $56.54. The firm has a market capitalization of $6.59 billion, a PE ratio of -15.32 and a beta of 0.69. The company has a debt-to-equity ratio of 0.71, a current ratio of 8.64 and a quick ratio of 8.64.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last announced its quarterly earnings data 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 period in the previous year, the business earned ($0.67) earnings per share. As a group, sell-side analysts forecast that Scholar Rock will post -3.23 EPS for the current fiscal year.

Insiders Place Their Bets

In other Scholar Rock news, CFO Vikas Sinha sold 10,410 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 $516,023.70. Following the sale, the chief financial officer owned 619,856 shares of the company's stock, valued at approximately $30,726,261.92. This represents a 1.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 shares were sold at an average price of $49.57, for a total value of $1,517,585.55. Following the completion of the sale, the chief executive officer directly owned 1,639,034 shares in the company, valued at $81,246,915.38. This trade represents a 1.83% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 63,491 shares of company stock worth $3,147,249. Insiders own 13.30% of the company's stock.

Institutional Trading of Scholar Rock

Several large investors have recently bought and sold shares of the company. Siren L.L.C. grew its holdings in Scholar Rock by 17.0% in the fourth quarter. Siren L.L.C. now owns 10,825,013 shares of the company's stock valued at $476,842,000 after purchasing an additional 1,575,008 shares during the last quarter. Redmile Group LLC grew its holdings in Scholar Rock by 73.7% in the first quarter. Redmile Group LLC now owns 9,066,621 shares of the company's stock valued at $445,715,000 after purchasing an additional 3,845,775 shares during the last quarter. Wellington Management Group LLP grew its holdings in Scholar Rock by 26.7% in the fourth quarter. Wellington Management Group LLP now owns 5,759,428 shares of the company's stock valued at $253,703,000 after purchasing an additional 1,213,541 shares during the last quarter. Vanguard Group Inc. grew its holdings in Scholar Rock by 5.7% in the fourth quarter. Vanguard Group Inc. now owns 5,195,465 shares of the company's stock valued at $228,860,000 after purchasing an additional 280,538 shares during the last quarter. Finally, State Street Corp grew its holdings in Scholar Rock by 7.2% in the fourth quarter. State Street Corp now owns 4,034,434 shares of the company's stock valued at $177,717,000 after purchasing an additional 271,331 shares during the last quarter. Institutional investors and hedge funds own 91.08% of the company's stock.

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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