Scholar Rock (NASDAQ:SRRK) Shares Gap Down Following Analyst Downgrade

Scholar Rock Holding Corporation (NASDAQ:SRRK)’s stock price gapped down prior to trading on Tuesday after HC Wainwright lowered their price target on the stock from $50.00 to $44.00. The stock had previously closed at $32.58, but opened at $29.90. HC Wainwright currently has a buy rating on the stock. Scholar Rock shares last traded at $33.13, with a volume of 4,125,923 shares traded.

Several other equities research analysts have also recently weighed in on SRRK. Leerink Partnrs raised Scholar Rock to a “strong-buy” rating in a research report on Monday, September 15th. Barclays started coverage on Scholar Rock in a research report on Wednesday, September 17th. They issued an “overweight” rating and a $45.00 price objective for the company. Wedbush reissued an “outperform” rating and issued a $50.00 price objective on shares of Scholar Rock in a research report on Wednesday, June 18th. Leerink Partners started coverage on Scholar Rock in a research report on Monday, September 15th. They issued an “outperform” rating and a $51.00 price objective for the company. Finally, BMO Capital Markets reduced their price objective on Scholar Rock from $57.00 to $45.00 and set an “outperform” rating for the company in a research report on Thursday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating and ten have given a Buy rating to the stock. According to MarketBeat, Scholar Rock has a consensus rating of “Buy” and an average price target of $45.60.

Insider Buying and Selling

In related news, insider Mo Qatanani sold 24,066 shares of the firm’s stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $34.44, for a total value of $828,833.04. Following the completion of the transaction, the insider directly owned 115,495 shares of the company’s stock, valued at $3,977,647.80. This trade represents a 17.24% 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 hyperlink. Also, Director Katie Peng sold 1,006 shares of the firm’s stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $32.53, for a total value of $32,725.18. Following the completion of the transaction, the director directly owned 33,914 shares of the company’s stock, valued at approximately $1,103,222.42. This trade represents a 2.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 39,386 shares of company stock valued at $1,413,748 over the last ninety days. 13.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. CWM LLC raised its stake in Scholar Rock by 152.8% during the first quarter. CWM LLC now owns 996 shares of the company’s stock worth $32,000 after acquiring an additional 602 shares in the last quarter. Federated Hermes Inc. acquired a new position in Scholar Rock during the first quarter worth $71,000. GF Fund Management CO. LTD. raised its stake in Scholar Rock by 21.9% during the first quarter. GF Fund Management CO. LTD. now owns 2,396 shares of the company’s stock worth $77,000 after acquiring an additional 430 shares in the last quarter. Strs Ohio acquired a new position in Scholar Rock during the first quarter worth $77,000. Finally, Elevation Point Wealth Partners LLC acquired a new position in Scholar Rock during the second quarter worth $94,000. 91.08% of the stock is currently owned by institutional investors and hedge funds.

Scholar Rock Stock Up 3.6%

The company has a debt-to-equity ratio of 0.21, a current ratio of 6.33 and a quick ratio of 6.33. The firm has a 50 day simple moving average of $34.47 and a 200-day simple moving average of $33.05. The stock has a market capitalization of $3.24 billion, a price-to-earnings ratio of -11.60 and a beta of 0.36.

Scholar Rock (NASDAQ:SRRK) last released its quarterly earnings data 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 business posted ($0.60) earnings per share. On average, sell-side analysts forecast that Scholar Rock Holding Corporation will post -2.42 EPS for the current fiscal year.

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.