Scholar Rock (NASDAQ:SRRK) Stock Price Down 10.2% Following Weak 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) shares dropped 10.2% on Thursday following a weaker than expected earnings announcement. The company traded as low as $31.20 and last traded at $31.09. Approximately 1,614,328 shares changed hands during trading, an increase of 33% from the average daily 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 analysts' consensus estimates of ($0.66) by ($0.32). During the same period in the previous year, the business posted ($0.60) EPS.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other news, Director Michael Gilman sold 3,375 shares of Scholar Rock stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $29.72, for a total transaction of $100,305.00. Following the sale, the director directly owned 55,216 shares of the company's stock, valued at approximately $1,641,019.52. This trade represents a 5.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Akshay Vaishnaw sold 6,750 shares of Scholar Rock 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 $200,610.00. Following the completion of the transaction, the insider directly owned 616,205 shares in the company, valued at approximately $18,313,612.60. This represents a 1.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 93,654 shares of company stock valued at $3,101,811 over the last ninety days. 13.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Scholar Rock

A number of hedge funds and other institutional investors have recently made changes to their positions in SRRK. FMR LLC increased its holdings in Scholar Rock by 33.7% in the fourth quarter. FMR LLC now owns 13,635,261 shares of the company's stock worth $589,316,000 after purchasing an additional 3,439,215 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Scholar Rock by 7.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,283,421 shares of the company's stock valued at $401,231,000 after buying an additional 629,315 shares during the last quarter. Vanguard Group Inc. boosted its position in Scholar Rock by 2.1% in the first quarter. Vanguard Group Inc. now owns 4,845,205 shares of the company's stock worth $155,773,000 after purchasing an additional 101,723 shares during the last quarter. Marshall Wace LLP boosted its position in Scholar Rock by 1,283.7% in the fourth quarter. Marshall Wace LLP now owns 2,945,408 shares of the company's stock worth $127,301,000 after purchasing an additional 2,732,546 shares during the last quarter. Finally, Bellevue Group AG lifted its position in shares of Scholar Rock by 16.2% during the 4th quarter. Bellevue Group AG now owns 2,510,690 shares of the company's stock valued at $108,512,000 after buying an additional 349,487 shares during the last quarter. 91.08% of the stock is owned by institutional investors and hedge funds.

Scholar Rock Price Performance

The company has a current ratio of 10.25, a quick ratio of 10.25 and a debt-to-equity ratio of 0.16. The business has a 50-day moving average price of $35.66 and a 200 day moving average price of $34.70. The stock has a market cap of $2.95 billion, a PE ratio of -12.22 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.

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