Scholar Rock (NASDAQ:SRRK) Sets New 52-Week High - Should You Buy?

Key Points

• Scholar Rock reached a new 52-week high, trading around $58.67 and lifting its market capitalization to approximately $7.13 billion.
• Analyst sentiment is broadly positive: MarketBeat reports an average “Buy” rating and a consensus price target of $58.77, although ratings range from “Strong Buy” to “Sell.”
• Institutional ownership is substantial at 91.08%, with major investors including BlackRock and California State Teachers Retirement System adding significant positions; insiders sold shares largely to cover tax-withholding obligations.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) hit a new 52-week high on Monday . The stock traded as high as $58.63 and last traded at $58.6710, with a volume of 613225 shares changing hands. The stock had previously closed at $56.50.

Analyst Ratings Changes

Several analysts recently issued reports on SRRK shares. BMO Capital Markets reiterated an "outperform" rating and set a $76.00 target price on shares of Scholar Rock in a report on Friday, August 7th. HC Wainwright restated a "buy" rating and issued a $65.00 price target on shares of Scholar Rock in a research note on Monday, August 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Scholar Rock in a research report on Friday, July 17th. JPMorgan Chase & Co. upped their price objective on Scholar Rock from $56.00 to $63.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of Scholar Rock in a report on Thursday, June 18th. Four analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $58.77.

Scholar Rock Trading Up 3.6%

The company has a market cap of $7.13 billion, a price-to-earnings ratio of -16.97 and a beta of 0.69. The company has a current ratio of 7.02, a quick ratio of 7.02 and a debt-to-equity ratio of 0.77. The business's 50 day moving average price is $51.86 and its 200-day moving average price is $48.49.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.84) earnings per share for the quarter, meeting the consensus estimate of ($0.84). During the same quarter in the prior year, the firm earned ($0.98) earnings per share. On average, equities analysts anticipate that Scholar Rock Holding Corporation will post -3.23 EPS for the current fiscal year.

Insider Buying and Selling at Scholar Rock

In other Scholar Rock news, Director Jeffrey S. Flier sold 3,053 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $53.88, for a total transaction of $164,495.64. Following the transaction, the director owned 27,856 shares in the company, valued at $1,500,881.28. This trade represents a 9.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Michael Gilman sold 2,544 shares of the company's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $53.87, for a total transaction of $137,045.28. Following the completion of the transaction, the director owned 59,511 shares in the company, valued at $3,205,857.57. This trade represents a 4.10% 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 sold a total of 17,149 shares of company stock worth $923,108 in the last 90 days. Company insiders own 10.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. bought a new position in Scholar Rock during the 2nd quarter worth $522,175,000. California State Teachers Retirement System raised its holdings in Scholar Rock by 6,187.6% in the 2nd quarter. California State Teachers Retirement System now owns 4,710,420 shares of the company's stock valued at $259,073,000 after acquiring an additional 4,635,504 shares in the last quarter. Redmile Group LLC lifted its position in shares of Scholar Rock by 73.7% during the 1st quarter. Redmile Group LLC now owns 9,066,621 shares of the company's stock valued at $445,715,000 after acquiring an additional 3,845,775 shares during the period. Orbis Allan Gray Ltd lifted its position in shares of Scholar Rock by 1,034.5% during the 4th quarter. Orbis Allan Gray Ltd now owns 3,428,929 shares of the company's stock valued at $151,044,000 after acquiring an additional 3,126,677 shares during the period. Finally, Wellington Management Group LLP grew its holdings in shares of Scholar Rock by 124.5% during the 3rd quarter. Wellington Management Group LLP now owns 4,545,887 shares of the company's stock worth $169,289,000 after purchasing an additional 2,521,022 shares in 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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