Scholar Rock (NASDAQ:SRRK) Shares Down 10.2% on Disappointing Earnings

Key Points

• Scholar Rock Holding Corporation shares fell 10.2% after the company reported weaker than expected earnings, posting a loss of ($0.98) EPS compared to analysts' expectations of ($0.66).
• Analysts have mixed views, with several setting price targets between $45.00 and $53.00, and the average rating being "Buy".
• Insiders have sold a total of 93,654 shares in the last ninety days, representing a 13.30% ownership held by company insiders.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) fell 10.2% during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $31.20 and last traded at $31.09. 1,614,328 shares changed hands during trading, an increase of 33% from the average session volume of 1,210,916 shares. The stock had previously closed at $34.62.

The company reported ($0.98) earnings per share for the quarter, missing the consensus estimate of ($0.66) by ($0.32). During the same quarter last year, the business earned ($0.60) earnings per share.

Analysts Set New Price Targets

Several equities analysts recently commented on SRRK shares. Cantor Fitzgerald started coverage on Scholar Rock in a research report on Thursday, July 17th. They set an "overweight" rating on the stock. Lifesci Capital raised Scholar Rock to a "strong-buy" rating in a research report on Tuesday, June 3rd. BMO Capital Markets cut their target price on Scholar Rock from $57.00 to $45.00 and set an "outperform" rating on the stock in a research report on Thursday. Raymond James Financial set a $53.00 target price on Scholar Rock and gave the company a "strong-buy" rating in a research report on Wednesday, July 30th. Finally, Wedbush reaffirmed an "outperform" rating and issued a $50.00 target price on shares of Scholar Rock in a research report on Wednesday, June 18th. Seven research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $45.14.

Insiders Place Their Bets

In other news, Director Michael Gilman sold 3,375 shares of the business's stock in a transaction that occurred on Thursday, May 29th. The stock was sold at an average price of $29.72, for a total value of $100,305.00. Following the completion of the sale, the director directly owned 55,216 shares in the company, valued at approximately $1,641,019.52. The trade was a 5.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jeffrey S. Flier sold 11,136 shares of the business's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $40.02, for a total value of $445,662.72. Following the completion of the sale, the director owned 24,070 shares of the company's stock, valued at $963,281.40. This trade represents a 31.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 93,654 shares of company stock worth $3,101,811. Corporate insiders own 13.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. Universal Beteiligungs und Servicegesellschaft mbH grew its stake in Scholar Rock by 381.4% during the 2nd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 76,738 shares of the company's stock worth $2,718,000 after buying an additional 60,796 shares during the last quarter. Persistent Asset Partners Ltd grew its stake in Scholar Rock by 9.2% during the 2nd quarter. Persistent Asset Partners Ltd now owns 14,314 shares of the company's stock worth $507,000 after buying an additional 1,211 shares during the last quarter. Creative Planning grew its stake in Scholar Rock by 5.3% during the 2nd quarter. Creative Planning now owns 20,767 shares of the company's stock worth $736,000 after buying an additional 1,045 shares during the last quarter. Police & Firemen s Retirement System of New Jersey grew its stake in Scholar Rock by 5.7% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 18,150 shares of the company's stock worth $643,000 after buying an additional 978 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in Scholar Rock by 2.2% during the 2nd quarter. Geode Capital Management LLC now owns 1,887,410 shares of the company's stock worth $66,861,000 after buying an additional 39,961 shares during the last quarter. 91.08% of the stock is currently owned by institutional investors.

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 stock has a 50 day moving average of $35.78 and a 200 day moving average of $34.28. The stock has a market capitalization of $3.02 billion, a P/E ratio of -10.81 and a beta of 0.48.

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.