Scholar Rock (NASDAQ:SRRK) Trading 7.1% Higher – Should You Buy?

Scholar Rock Holding Corporation (NASDAQ:SRRK)’s share price traded up 7.1% on Thursday . The company traded as high as $42.96 and last traded at $42.61. 1,221,099 shares were traded during mid-day trading, an increase of 11% from the average session volume of 1,100,697 shares. The stock had previously closed at $39.79.

Analyst Ratings Changes

SRRK has been the topic of several research reports. HC Wainwright reaffirmed a “buy” rating and set a $58.00 price objective on shares of Scholar Rock in a report on Tuesday, March 3rd. Piper Sandler boosted their target price on Scholar Rock from $51.00 to $58.00 and gave the stock an “overweight” rating in a research report on Wednesday, March 4th. Citigroup upped their price target on Scholar Rock from $55.00 to $58.00 and gave the company a “buy” rating in a research note on Wednesday, March 4th. Truist Financial increased their price target on Scholar Rock from $44.00 to $55.00 and gave the company a “buy” rating in a research note on Tuesday, March 3rd. Finally, UBS Group assumed coverage on Scholar Rock in a research note on Wednesday, January 7th. They set a “buy” rating and a $60.00 price objective for the company. Four analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $54.36.

Scholar Rock Stock Performance

The company has a quick ratio of 6.95, a current ratio of 6.95 and a debt-to-equity ratio of 0.41. The stock has a market cap of $5.13 billion, a price-to-earnings ratio of -13.01 and a beta of 0.70. The stock’s fifty day moving average is $45.18 and its 200-day moving average is $39.91.

Scholar Rock (NASDAQ:SRRK) last announced its quarterly earnings results on Tuesday, March 3rd. The company reported ($0.76) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.86) by $0.10. During the same quarter in the prior year, the firm earned ($0.64) EPS. On average, analysts forecast that Scholar Rock Holding Corporation will post -2.42 EPS for the current year.

Insider Activity

In other Scholar Rock news, CFO Vikas Sinha sold 16,755 shares of the business’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $42.70, for a total value of $715,438.50. Following the completion of the transaction, the chief financial officer directly owned 583,245 shares of the company’s stock, valued at approximately $24,904,561.50. The trade was a 2.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Keith Woods sold 16,746 shares of Scholar Rock stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $42.70, for a total value of $715,054.20. Following the transaction, the chief operating officer owned 583,254 shares in the company, valued at $24,904,945.80. This trade represents a 2.79% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 207,464 shares of company stock valued at $9,157,423. Company insiders own 13.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SRRK. Orbis Allan Gray Ltd boosted its stake in Scholar Rock by 1,034.5% in the 4th quarter. Orbis Allan Gray Ltd now owns 3,428,929 shares of the company’s stock worth $151,044,000 after purchasing an additional 3,126,677 shares during the period. Wellington Management Group LLP lifted its holdings in shares of Scholar Rock by 124.5% in the third quarter. Wellington Management Group LLP now owns 4,545,887 shares of the company’s stock valued at $169,289,000 after purchasing an additional 2,521,022 shares in the last quarter. Holocene Advisors LP bought a new stake in shares of Scholar Rock in the third quarter valued at about $91,670,000. Norges Bank acquired a new position in shares of Scholar Rock during the fourth quarter worth about $91,603,000. Finally, Siren L.L.C. grew its holdings in shares of Scholar Rock by 17.0% during the fourth quarter. Siren L.L.C. now owns 10,825,013 shares of the company’s stock worth $476,842,000 after buying an additional 1,575,008 shares in the last quarter. Institutional investors and hedge funds own 91.08% of the company’s stock.

Scholar Rock Company Profile

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).