Scholar Rock (NASDAQ:SRRK) Sets New 1-Year High - Here's Why

Key Points

• Scholar Rock shares hit a new 52-week high, trading as high as $52.19 and closing around $51.48, up about 7% on the day. The move came with heavy volume of more than 1 million shares.
• Wall Street sentiment has turned more bullish, with several analysts raising price targets, including Piper Sandler to $58 and BMO Capital Markets to $70. The stock now has a consensus Buy rating and an average price target of $56.
• The company recently reported a quarterly loss of $0.83 per share, slightly worse than estimates, while insiders sold shares in April for tax-withholding purposes. Despite that, institutional ownership remains high at 91.08%.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $52.19 and last traded at $51.48, with a volume of 1049852 shares traded. The stock had previously closed at $48.13.

Analyst Upgrades and Downgrades

SRRK has been the subject of several recent research reports. Piper Sandler increased their price objective on Scholar Rock from $51.00 to $58.00 and gave the stock an "overweight" rating in a report on Wednesday, March 4th. BMO Capital Markets increased 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 reiterated a "sell (d-)" rating on shares of Scholar Rock in a report on Tuesday, April 21st. Citigroup increased 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. Finally, Truist Financial increased their price objective on Scholar Rock from $44.00 to $55.00 and gave the stock a "buy" rating in a report on Tuesday, March 3rd. Five equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Scholar Rock currently has a consensus rating of "Buy" and an average price target of $56.00.

Scholar Rock Trading Up 7.0%

The company has a fifty day simple moving average of $47.10 and a two-hundred day simple moving average of $44.66. The company has a debt-to-equity ratio of 0.71, a current ratio of 8.64 and a quick ratio of 8.64. The company has a market capitalization of $6.17 billion, a P/E ratio of -14.35 and a beta of 0.70.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($0.83) earnings per share for the quarter, missing the consensus estimate of ($0.82) by ($0.01). During the same quarter in the prior year, the company posted ($0.67) earnings per share. On average, analysts forecast that Scholar Rock Holding Corporation will post -3.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Scholar Rock news, CEO David Hallal sold 30,615 shares of the firm's stock in a transaction dated 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 transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Vikas Sinha sold 10,410 shares of Scholar Rock stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $49.57, for a total value of $516,023.70. Following the completion of the transaction, the chief financial officer owned 619,856 shares in the company, valued at $30,726,261.92. The trade was a 1.65% 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. Insiders have sold 63,491 shares of company stock valued at $3,147,249 in the last three months. 13.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Scholar Rock

Institutional investors have recently made changes to their positions in the business. IFP Advisors Inc increased its stake in shares of Scholar Rock by 294.1% in the fourth quarter. IFP Advisors Inc now owns 603 shares of the company's stock worth $27,000 after purchasing an additional 450 shares during the period. Caitong International Asset Management Co. Ltd bought a new position in shares of Scholar Rock in the fourth quarter worth about $30,000. Summit Securities Group LLC bought a new position in shares of Scholar Rock in the fourth quarter worth about $31,000. Ramirez Asset Management Inc. bought a new position in shares of Scholar Rock in the third quarter worth about $37,000. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Scholar Rock by 151.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 872 shares of the company's stock worth $38,000 after purchasing an additional 525 shares during the period. 91.08% of the stock is currently owned by institutional investors.

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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