Scholar Rock (NASDAQ:SRRK) Trading Down 4.3% - What's Next?

Key Points

• Scholar Rock's stock price dropped 4.3% to $35.62, with a trading volume significantly below its average at 343,844 shares.
• Analysts have mixed views, with target price adjustments ranging from $44.00 to $57.00, but a consensus rating of "Buy" and an average target of $46.40.
• The company reported an earnings miss of ($0.98) EPS against a consensus of ($0.66) for the latest quarter, projecting a total expected EPS of -2.42 for the current year.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report)'s stock price fell 4.3% during trading on Wednesday . The company traded as low as $35.86 and last traded at $35.62. 343,844 shares were traded during trading, a decline of 76% from the average session volume of 1,423,441 shares. The stock had previously closed at $37.24.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. HC Wainwright cut their target price on Scholar Rock from $50.00 to $44.00 and set a "buy" rating for the company in a research report on Tuesday, September 23rd. 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 on the stock. BMO Capital Markets cut their target price 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. Cantor Fitzgerald initiated coverage on shares of Scholar Rock in a report on Thursday, July 17th. They issued an "overweight" rating on the stock. Finally, Leerink Partners began coverage on shares of Scholar Rock in a 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 issued a Buy rating to the company. According to MarketBeat, Scholar Rock currently has a consensus rating of "Buy" and an average price target of $46.40.

Scholar Rock Stock Down 5.6%

The company has a quick ratio of 6.33, a current ratio of 6.33 and a debt-to-equity ratio of 0.21. The company has a 50 day simple moving average of $34.01 and a two-hundred day simple moving average of $33.11. The company has a market capitalization of $3.38 billion, a P/E ratio of -11.98 and a beta of 0.36.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last released 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 company posted ($0.60) EPS. As a group, equities analysts predict that Scholar Rock Holding Corporation will post -2.42 EPS for the current year.

Insider Activity at Scholar Rock

In other news, Director Jeffrey S. Flier sold 11,136 shares of the stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $40.02, for a total transaction of $445,662.72. Following the transaction, the director owned 24,070 shares of the company's stock, valued at approximately $963,281.40. This represents a 31.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mo Qatanani sold 3,353 shares of the firm's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $30.67, for a total transaction of $102,836.51. Following the transaction, the insider directly owned 108,964 shares in the company, valued at $3,341,925.88. This trade represents a 2.99% decrease in their position. The disclosure for this sale can be found here. Insiders sold 42,739 shares of company stock worth $1,516,584 in the last 90 days. 13.30% of the stock is owned by corporate insiders.

Institutional Trading of Scholar Rock

Several hedge funds and other institutional investors have recently bought and sold shares of SRRK. Vestal Point Capital LP purchased a new stake in shares of Scholar Rock during the first quarter valued at about $41,795,000. Norges Bank purchased a new position in Scholar Rock during the 2nd quarter worth $41,628,000. RA Capital Management L.P. increased its position in Scholar Rock by 6,351.3% during the 1st quarter. RA Capital Management L.P. now owns 1,136,453 shares of the company's stock valued at $36,537,000 after buying an additional 1,118,837 shares in the last quarter. Balyasny Asset Management L.P. purchased a new position in shares of Scholar Rock in the 2nd quarter valued at approximately $33,062,000. Finally, Nationale Nederlanden Powszechne Towarzystwo Emerytalne S.A. boosted its stake in Scholar Rock by 145.3% in the 2nd quarter. Nationale Nederlanden Powszechne Towarzystwo Emerytalne S.A. now owns 769,442 shares of the company's stock worth $27,254,000 after purchasing an additional 455,753 shares in the last quarter. Institutional investors own 91.08% of the company's stock.

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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