Scholar Rock (NASDAQ:SRRK) Trading Down 7.1% – Time to Sell?

Scholar Rock Holding Corporation (NASDAQ:SRRK) dropped 7.1% on Tuesday . The company traded as low as $46.54 and last traded at $48.1750. 716,509 shares traded hands during trading, a decline of 46% from the average daily volume of 1,323,648 shares. The stock had previously closed at $51.85.

Scholar Rock News Roundup

Here are the key news stories impacting Scholar Rock this week:

• Positive Sentiment: The FDA approved ISEMBYLD for the treatment of spinal muscular atrophy (SMA) in children and adults. Scholar Rock describes it as the first therapy designed to directly target the muscle loss associated with SMA, expanding the company from a clinical-stage biotechnology business toward commercialization. Scholar Rock Gets FDA Approval for Spinal Muscular Atrophy Treatment in Children, Adults; Shares Up Pre-Bell
• Positive Sentiment: Analysts viewed the early approval as a positive surprise. UBS reportedly maintained a constructive outlook, while Wedbush reaffirmed its “outperform” rating and set a $64 price target, implying substantial upside from recent trading levels. Other reports cited a consensus “Buy” recommendation. Scholar Rock’s Early FDA Approval on Spinal Muscular Atrophy Drug Seen as Positive Surprise, UBS Says
• Positive Sentiment: Wall Street raised price targets following the approval, reflecting expectations that ISEMBYLD could generate meaningful revenue in the SMA market and provide a differentiated treatment option. SRRK Shares Pull Back After FDA Approval for Genetic Disease Drug — But Wall Street Hikes Price Targets
• Neutral Sentiment: Scholar Rock set a list price of $11,659 per single-use vial, with an estimated annual treatment cost of approximately $310,000. The pricing supports significant potential revenue per patient but makes reimbursement, affordability and payer access important launch risks. Scholar Rock prices first drug to target SMA muscle loss at $11,659 per vial
• Negative Sentiment: Despite the approval-driven rally, shares decreased as investors appeared to take profits and reassess the stock’s valuation and commercial execution requirements. The pullback suggests the approval was already partly anticipated and that near-term focus has shifted to launch uptake, reimbursement and sales performance.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on SRRK. Cantor Fitzgerald restated an “overweight” rating on shares of Scholar Rock in a research note on Thursday, June 18th. HC Wainwright raised their target price on Scholar Rock from $65.00 to $70.00 and gave the stock a “buy” rating in a report on Tuesday. Barclays cut Scholar Rock from an “overweight” rating to a “cautious” rating in a research report on Tuesday. TD Cowen restated a “buy” rating on shares of Scholar Rock in a research report on Monday. Finally, Citigroup upped their price objective on Scholar Rock from $60.00 to $74.00 and gave the stock a “buy” rating in a research report on Monday. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have given a Sell rating to the company. According to MarketBeat, Scholar Rock currently has an average rating of “Moderate Buy” and an average target price of $66.00.

Scholar Rock Stock Performance

The business’s 50-day simple moving average is $53.49 and its two-hundred day simple moving average is $49.57. The firm has a market cap of $5.72 billion, a price-to-earnings ratio of -13.63 and a beta of 0.67. The company has a quick ratio of 7.02, a current ratio of 7.02 and a debt-to-equity ratio of 0.77.

Scholar Rock (NASDAQ:SRRK) last posted its earnings results on Thursday, August 6th. The company reported ($0.84) EPS for the quarter, meeting analysts’ consensus estimates of ($0.84). During the same period last year, the firm earned ($0.98) EPS. As a group, sell-side analysts expect that Scholar Rock Holding Corporation will post -3.23 earnings per share for the current fiscal year.

Insider Activity at Scholar Rock

In other news, Director Joshua Reed sold 3,053 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $53.74, for a total value of $164,068.22. Following the completion of the sale, the director directly owned 19,518 shares in the company, valued at $1,048,897.32. The trade was a 13.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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 the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $53.74, for a total value of $164,068.22. Following the transaction, the director directly owned 114,657 shares of the company’s stock, valued at approximately $6,161,667.18. The trade was a 2.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 17,149 shares of company stock valued at $923,108 in the last ninety days. 10.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Scholar Rock

A number of institutional investors have recently added to or reduced their stakes in the stock. IFP Advisors Inc increased its holdings in Scholar Rock by 294.1% in the 4th quarter. IFP Advisors Inc now owns 603 shares of the company’s stock worth $27,000 after acquiring an additional 450 shares in the last quarter. Allworth Financial LP acquired a new position in Scholar Rock during the second quarter worth $35,000. EverSource Wealth Advisors LLC lifted its holdings in Scholar Rock by 151.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 872 shares of the company’s stock valued at $38,000 after purchasing an additional 525 shares in the last quarter. Hilton Head Capital Partners LLC purchased a new position in Scholar Rock during the fourth quarter valued at $44,000. Finally, PNC Financial Services Group Inc. grew its position in shares of Scholar Rock by 92.4% in the first quarter. PNC Financial Services Group Inc. now owns 1,270 shares of the company’s stock valued at $62,000 after purchasing an additional 610 shares during the period. Institutional investors and hedge funds own 91.08% of the company’s stock.

Scholar Rock Company Profile

Scholar Rock, Inc is a biopharmaceutical company focused on developing medicines that selectively target growth factors in their latent forms. The company’s approach is designed to modulate the activation of growth factors in specific tissues, with the goal of addressing diseases in which these biological pathways contribute to impaired function or abnormal tissue growth.

Scholar Rock’s lead program is apitegromab, a monoclonal antibody designed to inhibit the activation of myostatin. The company has studied apitegromab as a potential treatment for spinal muscular atrophy, a genetic neuromuscular disorder that causes progressive muscle weakness and loss of motor function.