Scholar Rock's (SRRK) Outperform Rating Reiterated at Wedbush

Key Points

• Wedbush reaffirmed its “Outperform” rating on Scholar Rock with a $58 price target, implying 12.45% upside from the stock’s $51.58 price. The analyst consensus remains “Buy,” with an average target of $56.79.
• Scholar Rock’s shares traded near their 52-week high of $58.49, while the company reported quarterly EPS of negative $0.84, in line with analyst expectations. Analysts project a full-year loss of $3.25 per share.
• Institutional investors own approximately 91.08% of the company, with Jennison Associates increasing its stake by 74% in the fourth quarter. Recent insider sales were made to cover tax withholding obligations tied to equity awards.

Scholar Rock (NASDAQ:SRRK - Get Free Report)'s stock had its "outperform" rating reissued by analysts at Wedbush in a research report issued on Monday,Benzinga reports. They currently have a $58.00 price objective on the stock. Wedbush's price objective points to a potential upside of 12.45% from the stock's current price.

SRRK has been the topic of a number of other reports. HC Wainwright reaffirmed a "buy" rating and issued a $65.00 target price on shares of Scholar Rock in a report on Monday. Canaccord Genuity Group initiated coverage on Scholar Rock in a report on Monday, April 20th. They set a "buy" rating and a $62.00 price target for the company. Cantor Fitzgerald restated an "overweight" rating on shares of Scholar Rock in a research report on Thursday, June 18th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Scholar Rock in a research note on Friday, July 17th. Finally, BMO Capital Markets reaffirmed an "outperform" rating and set a $76.00 price objective on shares of Scholar Rock in a research report on Friday. Four equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $56.79.

Scholar Rock Stock Performance

Shares of NASDAQ SRRK traded down $1.34 during midday trading on Monday, hitting $51.58. 101,421 shares of the company's stock traded hands, compared to its average volume of 1,343,335. Scholar Rock has a 1 year low of $27.07 and a 1 year high of $58.49. The stock has a market capitalization of $6.28 billion, a price-to-earnings ratio of -14.91 and a beta of 0.69. The company has a debt-to-equity ratio of 0.71, a quick ratio of 8.64 and a current ratio of 8.64. The firm has a fifty day moving average of $50.06 and a 200 day moving average of $47.87.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.84) earnings per share for the quarter, hitting the consensus estimate of ($0.84). During the same quarter in the previous year, the firm posted ($0.98) EPS. On average, analysts forecast that Scholar Rock will post -3.25 earnings per share for the current year.

Insider Activity

In other news, Director Katie Peng sold 5,446 shares of the firm's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $53.88, for a total transaction of $293,430.48. Following the sale, the director directly owned 34,301 shares in the company, valued at $1,848,137.88. This trade represents a 13.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kristina Burow sold 3,053 shares of Scholar Rock stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $53.74, for a total transaction of $164,068.22. Following the transaction, the director owned 114,657 shares in the company, valued at approximately $6,161,667.18. This trade represents a 2.59% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 17,149 shares of company stock worth $923,108. 10.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Scholar Rock

Large investors have recently made changes to their positions in the business. Jennison Associates LLC boosted its stake in Scholar Rock by 74.0% in the 4th quarter. Jennison Associates LLC now owns 2,795,188 shares of the company's stock worth $123,128,000 after purchasing an additional 1,188,676 shares during the period. iA Global Asset Management Inc. bought a new stake in shares of Scholar Rock during the fourth quarter valued at approximately $5,430,000. Geode Capital Management LLC raised its position in shares of Scholar Rock by 4.1% during the fourth quarter. Geode Capital Management LLC now owns 2,034,024 shares of the company's stock valued at $89,616,000 after buying an additional 79,214 shares during the last quarter. Norges Bank purchased a new position in shares of Scholar Rock in the fourth quarter worth $91,603,000. Finally, First Turn Management LLC purchased a new position in shares of Scholar Rock in the fourth quarter worth $20,251,000. 91.08% of the stock is currently owned by hedge funds and other institutional investors.

About Scholar Rock

Scholar Rock is a clinical-stage biotechnology company focused on the discovery and development of protein therapeutics that selectively target growth factors involved in disease processes. The company's research platform is designed to modulate endogenous growth factor activation and signaling with high specificity, aiming to restore normal biological function across a range of disorders. Scholar Rock's approach is distinguished by its emphasis on engineering antibodies and biologics that interact with growth factor precursors or latent complexes rather than the active form, potentially offering improved safety and efficacy profiles.

The company's lead program, SRK-015 (appercept), is an investigational monoclonal antibody targeting the activation of latent myostatin proproteins and is being evaluated for the treatment of spinal muscular atrophy (SMA).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source