Scholar Rock (NASDAQ:SRRK) Shares Gap Down – What’s Next?

Scholar Rock Holding Corporation (NASDAQ:SRRK) shares gapped down before the market opened on Tuesday . The stock had previously closed at $41.99, but opened at $40.00. Scholar Rock shares last traded at $41.7040, with a volume of 159,543 shares.

Analyst Ratings Changes

SRRK has been the topic of several research analyst reports. Piper Sandler cut their target price on Scholar Rock from $52.00 to $51.00 and set an “overweight” rating on the stock in a research report on Wednesday, September 24th. Leerink Partners assumed coverage on Scholar Rock in a report on Monday, September 15th. They issued an “outperform” rating and a $51.00 target price for the company. Wolfe Research started coverage on Scholar Rock in a report on Tuesday, November 18th. They set an “outperform” rating and a $42.00 price target on the stock. Leerink Partnrs raised shares of Scholar Rock to a “strong-buy” rating in a research report on Monday, September 15th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Scholar Rock in a research note on Wednesday, October 8th. Four equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $48.33.

Scholar Rock Stock Performance

The company’s 50-day simple moving average is $34.75 and its 200 day simple moving average is $34.28. The stock has a market cap of $4.61 billion, a P/E ratio of -14.35 and a beta of 0.61. The company has a current ratio of 6.30, a quick ratio of 6.30 and a debt-to-equity ratio of 0.41.

Scholar Rock (NASDAQ:SRRK) last released its earnings results on Friday, November 14th. The company reported ($0.90) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.88) by ($0.02). During the same quarter in the prior year, the company earned ($0.66) earnings per share. As a group, sell-side analysts expect that Scholar Rock Holding Corporation will post -2.42 EPS for the current fiscal year.

Insider Activity

In related news, Director Katie Peng sold 1,006 shares of the firm’s stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $32.53, for a total transaction of $32,725.18. Following the completion of the sale, the director owned 33,914 shares in the company, valued at approximately $1,103,222.42. This trade represents a 2.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Srinivas Akkaraju acquired 113,025 shares of the stock in a transaction on Monday, October 6th. The stock was bought at an average cost of $38.65 per share, for a total transaction of $4,368,416.25. Following the transaction, the director owned 500,439 shares of the company’s stock, valued at approximately $19,341,967.35. This trade represents a 29.17% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold a total of 7,537 shares of company stock valued at $242,088 in the last ninety days. 13.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Scholar Rock

Several large investors have recently modified their holdings of SRRK. Wellington Management Group LLP lifted its position in shares of Scholar Rock by 124.5% during the 3rd quarter. Wellington Management Group LLP now owns 4,545,887 shares of the company’s stock valued at $169,289,000 after buying an additional 2,521,022 shares during the last quarter. Holocene Advisors LP purchased a new stake in Scholar Rock in the 3rd quarter worth about $91,670,000. Vestal Point Capital LP bought a new stake in Scholar Rock in the 1st quarter valued at about $41,795,000. Norges Bank purchased a new stake in Scholar Rock during the second quarter valued at about $41,628,000. Finally, RA Capital Management L.P. boosted its position in Scholar Rock by 6,351.3% during the first quarter. RA Capital Management L.P. now owns 1,136,453 shares of the company’s stock worth $36,537,000 after purchasing an additional 1,118,837 shares during the period. Hedge funds and other institutional investors own 91.08% of the company’s stock.

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.