Scholar Rock (NASDAQ:SRRK) Shares Down 6.4% - Should You Sell?

Key Points

• Scholar Rock's stock fell by 6.4% on Tuesday, trading at $32.08, and total trading volume increased by 64% compared to its average.
• Analysts' ratings vary for Scholar Rock, with a consensus rating of "Buy" and a target price of $48.60, while Weiss Ratings maintains a "sell" rating on the stock.
• Insider trading activity includes a director selling shares and another director purchasing a significant number of shares, indicating varying confidence among company executives.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) traded down 6.4% on Tuesday . The company traded as low as $32.45 and last traded at $32.08. 2,517,077 shares traded hands during mid-day trading, an increase of 64% from the average session volume of 1,533,508 shares. The stock had previously closed at $34.28.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Bank of America initiated coverage on shares of Scholar Rock in a research report on Thursday, October 9th. They set a "buy" rating and a $53.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Scholar Rock in a research report on Wednesday, October 8th. BMO Capital Markets reduced their price objective on shares of Scholar Rock from $57.00 to $45.00 and set an "outperform" rating for the company in a research note on Thursday, August 7th. Barclays reduced their price objective on shares of Scholar Rock from $45.00 to $44.00 and set an "overweight" rating for the company in a research note on Wednesday, September 24th. Finally, Raymond James Financial set a $53.00 price objective on shares of Scholar Rock and gave the company a "strong-buy" rating in a report on Wednesday, July 30th. Three equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of $48.60.

Scholar Rock Stock Performance

The stock has a 50 day simple moving average of $34.00 and a two-hundred day simple moving average of $33.38. The company has a debt-to-equity ratio of 0.21, a current ratio of 6.33 and a quick ratio of 6.33. The company has a market cap of $3.07 billion, a PE ratio of -10.96 and a beta of 0.42.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported ($0.98) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.66) by ($0.32). During the same quarter in the prior year, the firm earned ($0.60) EPS. Equities analysts predict that Scholar Rock Holding Corporation will post -2.42 EPS for the current year.

Insider Transactions at Scholar Rock

In other Scholar Rock news, Director Katie Peng sold 1,006 shares of the firm's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $32.53, for a total transaction of $32,725.18. Following the completion of the transaction, the director directly owned 33,914 shares in the company, valued at approximately $1,103,222.42. This trade represents a 2.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Srinivas Akkaraju bought 387,414 shares of the company's stock in a transaction on Friday, October 3rd. The shares were acquired at an average price of $37.27 per share, with a total value of $14,438,919.78. Following the completion of the acquisition, the director directly owned 387,414 shares in the company, valued at $14,438,919.78. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have sold 18,673 shares of company stock worth $687,751. Corporate insiders own 13.30% of the company's stock.

Institutional Trading of Scholar Rock

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CWM LLC increased its position in Scholar Rock by 152.8% during the 1st quarter. CWM LLC now owns 996 shares of the company's stock worth $32,000 after purchasing an additional 602 shares in the last quarter. Federated Hermes Inc. purchased a new stake in shares of Scholar Rock during the first quarter worth about $71,000. GF Fund Management CO. LTD. grew its stake in Scholar Rock by 21.9% in the 1st quarter. GF Fund Management CO. LTD. now owns 2,396 shares of the company's stock worth $77,000 after acquiring an additional 430 shares during the period. Strs Ohio purchased a new stake in Scholar Rock in the 1st quarter worth approximately $77,000. Finally, Elevation Point Wealth Partners LLC purchased a new stake in Scholar Rock in the 2nd quarter worth approximately $94,000. Hedge funds and other institutional investors own 91.08% of the company's stock.

About Scholar Rock

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies.

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