Scholar Rock (NASDAQ:SRRK) Shares Gap Up – Time to Buy?

Scholar Rock Holding Corporation (NASDAQ:SRRK)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $43.48, but opened at $45.25. Scholar Rock shares last traded at $45.1590, with a volume of 294,945 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on SRRK shares. Cantor Fitzgerald restated an “overweight” rating on shares of Scholar Rock in a research note on Thursday, December 11th. Barclays increased their price target on shares of Scholar Rock from $45.00 to $52.00 and gave the company an “overweight” rating in a research report on Wednesday, December 17th. Citigroup assumed coverage on shares of Scholar Rock in a research report on Friday, January 9th. They issued a “buy” rating and a $55.00 price objective on the stock. UBS Group began coverage on shares of Scholar Rock in a research note on Wednesday, January 7th. They issued a “buy” rating and a $60.00 target price on the stock. Finally, BMO Capital Markets restated an “outperform” rating and set a $50.00 price target on shares of Scholar Rock in a research note on Friday, November 14th. Four investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Scholar Rock presently has a consensus rating of “Buy” and an average target price of $51.14.

Scholar Rock Stock Performance

The company has a quick ratio of 6.30, a current ratio of 6.30 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $4.78 billion, a PE ratio of -14.86 and a beta of 0.70. The company has a 50-day moving average price of $45.32 and a two-hundred day moving average price of $38.99.

Scholar Rock (NASDAQ:SRRK) last announced its quarterly earnings results on Tuesday, March 3rd. The company reported ($0.88) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.86) by ($0.02). During the same period in the previous year, the firm earned ($0.64) EPS. Analysts predict that Scholar Rock Holding Corporation will post -2.42 EPS for the current fiscal year.

Insider Transactions at Scholar Rock

In related news, COO Keith Woods sold 16,746 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $42.70, for a total value of $715,054.20. Following the sale, the chief operating officer owned 583,254 shares in the company, valued at approximately $24,904,945.80. This trade represents a 2.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Mo Qatanani sold 136,462 shares of Scholar Rock stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $45.21, for a total value of $6,169,447.02. Following the sale, the insider owned 108,964 shares of the company’s stock, valued at approximately $4,926,262.44. This trade represents a 55.60% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 344,932 shares of company stock valued at $15,371,225. Corporate insiders own 13.30% of the company’s stock.

Hedge Funds Weigh In On Scholar Rock

Several hedge funds and other institutional investors have recently modified their holdings of SRRK. Orbis Allan Gray Ltd raised its position in shares of 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 acquiring an additional 3,126,677 shares in the last quarter. Wellington Management Group LLP lifted its position in Scholar Rock by 124.5% during the third 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 period. Holocene Advisors LP bought a new stake in shares of Scholar Rock during the 3rd quarter valued at $91,670,000. Norges Bank purchased a new stake in shares of Scholar Rock in the 4th quarter worth about $91,603,000. Finally, Siren L.L.C. grew its position in shares of Scholar Rock by 17.0% in the 4th 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 during the period. Hedge funds and other institutional investors own 91.08% of the company’s stock.

About Scholar Rock

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).