Scholar Rock (NASDAQ:SRRK) Shares Gap Down - What's Next?

Key Points

• Scholar Rock's stock price gapped down from $39.46 to $32.87 at market opening, closing at $30.96 with a trading volume of over 4.4 million shares.
• Recent analyst reports have seen mixed ratings, with a consensus price target of $47.00, indicating a predominately positive outlook despite some reduced targets from various firms.
• Insider trading activity has been notable, with significant stock sales by directors, raising concerns about the company's stock ownership dynamics as insiders collectively hold 13.30% of the shares.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $39.46, but opened at $32.87. Scholar Rock shares last traded at $30.96, with a volume of 4,436,361 shares changing hands.

Analysts Set New Price Targets

SRRK has been the topic of a number of recent analyst reports. HC Wainwright dropped their price target on Scholar Rock from $50.00 to $44.00 and set a "buy" rating on the stock in a report on Tuesday, September 23rd. Cantor Fitzgerald assumed coverage on Scholar Rock in a research note on Thursday, July 17th. They issued an "overweight" rating on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Scholar Rock in a research note on Wednesday, October 8th. Raymond James Financial set a $53.00 target price on Scholar Rock and gave the company a "strong-buy" rating in a research note on Wednesday, July 30th. Finally, BMO Capital Markets lowered their target price on Scholar Rock from $57.00 to $45.00 and set an "outperform" rating on the stock in a research note on Thursday, August 7th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $47.00.

Scholar Rock Stock Performance

The company has a debt-to-equity ratio of 0.21, a quick ratio of 6.33 and a current ratio of 6.33. The company has a market capitalization of $3.33 billion, a P/E ratio of -11.90 and a beta of 0.42. The business has a 50 day moving average of $34.06 and a 200-day moving average of $33.37.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last released its quarterly earnings data 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 company posted ($0.60) earnings per share. On average, sell-side analysts predict that Scholar Rock Holding Corporation will post -2.42 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Jeffrey S. Flier sold 11,136 shares of the business'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 directly owned 24,070 shares in the company, valued at $963,281.40. The trade was a 31.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mo Qatanani sold 3,353 shares of the business's stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $30.67, for a total value of $102,836.51. Following the transaction, the insider owned 108,964 shares of the company's stock, valued at approximately $3,341,925.88. The trade was a 2.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 18,673 shares of company stock valued at $687,751. 13.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Scholar Rock

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in Scholar Rock by 2.1% during the first quarter. Vanguard Group Inc. now owns 4,845,205 shares of the company's stock worth $155,773,000 after buying an additional 101,723 shares in the last quarter. Bellevue Group AG grew its position in Scholar Rock by 17.6% during the second quarter. Bellevue Group AG now owns 2,947,295 shares of the company's stock worth $104,393,000 after buying an additional 440,405 shares in the last quarter. Eventide Asset Management LLC grew its position in Scholar Rock by 9.5% during the second quarter. Eventide Asset Management LLC now owns 2,913,246 shares of the company's stock worth $103,192,000 after buying an additional 251,638 shares in the last quarter. Adage Capital Partners GP L.L.C. grew its position in Scholar Rock by 26.5% during the first quarter. Adage Capital Partners GP L.L.C. now owns 2,018,000 shares of the company's stock worth $64,879,000 after buying an additional 423,131 shares in the last quarter. Finally, Hood River Capital Management LLC grew its position in Scholar Rock by 1.6% during the second quarter. Hood River Capital Management LLC now owns 1,974,964 shares of the company's stock worth $69,953,000 after buying an additional 30,806 shares in the last quarter. 91.08% of the stock is currently owned by hedge funds and other institutional investors.

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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