Scholar Rock (NASDAQ:SRRK) Shares Gap Down Following Analyst Downgrade

Key Points

• Scholar Rock shares gapped down from $32.58 to $29.90 following an analyst downgrade by HC Wainwright, which lowered the price target from $50 to $44.
• Despite the downgrade, the stock currently has a consensus rating of Buy from analysts, with three rating it as Strong Buy.
• Insider transactions indicate a decrease in ownership among directors, with recent sales totaling over $1.4 million in shares.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) gapped down prior to trading on Tuesday after HC Wainwright lowered their price target on the stock from $50.00 to $44.00. The stock had previously closed at $32.58, but opened at $29.90. HC Wainwright currently has a buy rating on the stock. Scholar Rock shares last traded at $33.13, with a volume of 4,125,923 shares traded.

A number of other equities research analysts also recently issued reports on SRRK. Barclays began coverage on shares of Scholar Rock in a research report on Wednesday, September 17th. They set an "overweight" rating and a $45.00 price objective for the company. Lifesci Capital raised shares of Scholar Rock to a "strong-buy" rating in a research report on Tuesday, June 3rd. Leerink Partnrs raised shares of Scholar Rock to a "strong-buy" rating in a research report on Monday, September 15th. Jefferies Financial Group began coverage on shares of Scholar Rock in a research report on Thursday, August 21st. They set a "buy" rating and a $50.00 price objective for the company. Finally, Leerink Partners began coverage on shares of Scholar Rock in a research report on Monday, September 15th. They set an "outperform" rating and a $51.00 price objective for the company. Three equities research analysts have rated the stock with a Strong Buy rating and ten have given a Buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $45.60.

Insider Activity

In related news, Director Katie Peng sold 1,006 shares of the stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $32.53, for a total value of $32,725.18. Following the sale, the director directly owned 33,914 shares of the company's stock, valued at $1,103,222.42. This represents a 2.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jeffrey S. Flier sold 11,136 shares of the company's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $40.02, for a total transaction of $445,662.72. Following the completion of the transaction, the director owned 24,070 shares in the company, valued at $963,281.40. This represents a 31.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 39,386 shares of company stock worth $1,413,748. 13.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Scholar Rock

A number of hedge funds have recently added to or reduced their stakes in the stock. CWM LLC boosted its stake in shares of Scholar Rock by 152.8% during the first quarter. CWM LLC now owns 996 shares of the company's stock valued at $32,000 after purchasing an additional 602 shares in the last quarter. Federated Hermes Inc. acquired a new stake in Scholar Rock in the first quarter valued at approximately $71,000. GF Fund Management CO. LTD. raised its holdings in shares of Scholar Rock by 21.9% in the first quarter. GF Fund Management CO. LTD. now owns 2,396 shares of the company's stock worth $77,000 after buying an additional 430 shares during the last quarter. Strs Ohio purchased a new position in shares of Scholar Rock in the first quarter worth $77,000. Finally, Elevation Point Wealth Partners LLC purchased a new position in shares of Scholar Rock in the second quarter worth $94,000. 91.08% of the stock is currently owned by institutional investors.

Scholar Rock Trading Up 1.0%

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's fifty day moving average is $34.57 and its 200-day moving average is $33.05. The stock has a market cap of $3.16 billion, a PE ratio of -11.30 and a beta of 0.36.

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 the consensus estimate of ($0.66) by ($0.32). During the same period in the previous year, the firm earned ($0.60) EPS. On average, analysts predict that Scholar Rock Holding Corporation will post -2.42 earnings per share for the current fiscal year.

Scholar Rock Company Profile

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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