Wedbush Issues Negative Outlook for Scholar Rock Earnings

Key Points

• Wedbush Brokers have revised their Q3 2025 earnings estimates for Scholar Rock, now predicting a loss of ($0.70) per share, compared to a previous estimate of ($0.64).
• Scholar Rock's recent quarterly earnings report showed a loss of ($0.98) per share, missing the consensus estimate by ($0.32).
• Despite recent downgrades, Scholar Rock has received several buy and strong-buy ratings from analysts, maintaining a consensus rating of "Buy" with an average target price of $45.14.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Free Report) - Investment analysts at Wedbush dropped their Q3 2025 earnings per share estimates for shares of Scholar Rock in a research report issued to clients and investors on Wednesday, August 6th. Wedbush analyst D. Nierengarten now forecasts that the company will post earnings of ($0.70) per share for the quarter, down from their prior forecast of ($0.64). Wedbush currently has a "Outperform" rating and a $50.00 target price on the stock. The consensus estimate for Scholar Rock's current full-year earnings is ($2.42) per share. Wedbush also issued estimates for Scholar Rock's FY2025 earnings at ($2.98) EPS, Q1 2026 earnings at ($0.60) EPS, Q2 2026 earnings at ($0.52) EPS, Q3 2026 earnings at ($0.43) EPS, Q4 2026 earnings at ($0.31) EPS, FY2026 earnings at ($1.86) EPS, FY2027 earnings at ($0.36) EPS and FY2028 earnings at $0.89 EPS.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last issued its earnings results 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 last year, the company earned ($0.60) EPS.

Other equities analysts have also recently issued reports about the company. Lifesci Capital raised Scholar Rock to a "strong-buy" rating in a research note on Tuesday, June 3rd. BMO Capital Markets lowered their price objective on shares of Scholar Rock from $57.00 to $45.00 and set an "outperform" rating for the company in a report 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 for the company. Finally, Raymond James Financial set a $53.00 target price on shares of Scholar Rock and gave the stock a "strong-buy" rating in a research report on Wednesday, July 30th. Seven investment analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $45.14.

Scholar Rock Price Performance

Shares of Scholar Rock stock traded up $0.12 during trading on Monday, hitting $32.10. The stock had a trading volume of 326,218 shares, compared to its average volume of 1,222,196. The firm has a market cap of $3.09 billion, a price-to-earnings ratio of -11.02 and a beta of 0.48. The company has a current ratio of 6.33, a quick ratio of 6.33 and a debt-to-equity ratio of 0.21. Scholar Rock has a 12 month low of $6.76 and a 12 month high of $46.98. The business's 50-day moving average is $35.83 and its 200 day moving average is $34.25.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Alliancebernstein L.P. boosted its holdings in shares of Scholar Rock by 39.5% in the 4th quarter. Alliancebernstein L.P. now owns 79,350 shares of the company's stock valued at $3,430,000 after buying an additional 22,480 shares in the last quarter. Wells Fargo & Company MN raised its position in Scholar Rock by 58.7% in the 4th quarter. Wells Fargo & Company MN now owns 38,590 shares of the company's stock valued at $1,668,000 after purchasing an additional 14,274 shares during the last quarter. Invesco Ltd. raised its position in Scholar Rock by 1,292.8% in the 4th quarter. Invesco Ltd. now owns 312,161 shares of the company's stock valued at $13,492,000 after purchasing an additional 289,748 shares during the last quarter. Legal & General Group Plc raised its position in Scholar Rock by 20.1% during the 4th quarter. Legal & General Group Plc now owns 61,790 shares of the company's stock worth $2,671,000 after buying an additional 10,321 shares during the last quarter. Finally, Raymond James Financial Inc. purchased a new position in Scholar Rock during the 4th quarter worth $2,625,000. Institutional investors and hedge funds own 91.08% of the company's stock.

Insider Buying and Selling at Scholar Rock

In other news, insider Akshay Vaishnaw sold 6,750 shares of Scholar Rock stock in a transaction dated Thursday, May 29th. The shares were sold at an average price of $29.72, for a total value of $200,610.00. Following the sale, the insider owned 616,205 shares in the company, valued at $18,313,612.60. This trade represents a 1.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mo Qatanani sold 24,066 shares of Scholar Rock stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $34.44, for a total transaction of $828,833.04. Following the completion of the sale, the insider owned 115,495 shares in the company, valued at approximately $3,977,647.80. This trade represents a 17.24% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 93,654 shares of company stock valued at $3,101,811. 13.30% of the stock is owned by company insiders.

About Scholar Rock

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.