Scholar Rock (NASDAQ:SRRK) Sets New 52-Week High – Should You Buy?

Scholar Rock Holding Corporation (NASDAQ:SRRK)’s stock price hit a new 52-week high during trading on Monday . The stock traded as high as $58.63 and last traded at $58.6710, with a volume of 613225 shares changing hands. The stock had previously closed at $56.50.

Analysts Set New Price Targets

SRRK has been the subject of several research analyst reports. Citigroup boosted their price objective on shares of Scholar Rock from $58.00 to $60.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Wedbush reaffirmed an “outperform” rating and issued a $64.00 target price on shares of Scholar Rock in a report on Friday. Cantor Fitzgerald reissued an “overweight” rating on shares of Scholar Rock in a report on Thursday, June 18th. Barclays upped their price objective on Scholar Rock from $53.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $65.00 price objective on shares of Scholar Rock in a research note on Monday, August 10th. Four investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $58.77.

Scholar Rock Stock Performance

The firm has a market capitalization of $7.13 billion, a P/E ratio of -16.97 and a beta of 0.69. The company has a 50-day moving average of $51.86 and a 200-day moving average of $48.49. The company has a current ratio of 7.02, a quick ratio of 7.02 and a debt-to-equity ratio of 0.77.

Scholar Rock (NASDAQ:SRRK) last released its quarterly 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 in the prior year, the business posted ($0.98) earnings per share. On average, equities analysts anticipate that Scholar Rock Holding Corporation will post -3.23 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Joshua Reed 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 sale, the director directly owned 19,518 shares in the company, valued at $1,048,897.32. This represents a 13.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jeffrey S. Flier sold 3,053 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $53.88, for a total transaction of $164,495.64. Following the sale, the director directly owned 27,856 shares of the company’s stock, valued at $1,500,881.28. This represents a 9.88% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 17,149 shares of company stock valued at $923,108 over the last 90 days. 10.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Scholar Rock

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in Scholar Rock in the second quarter valued at $522,175,000. California State Teachers Retirement System boosted its position in shares of Scholar Rock by 6,187.6% during the 2nd quarter. California State Teachers Retirement System now owns 4,710,420 shares of the company’s stock valued at $259,073,000 after purchasing an additional 4,635,504 shares in the last quarter. Redmile Group LLC grew its stake in Scholar Rock by 73.7% during the first quarter. Redmile Group LLC now owns 9,066,621 shares of the company’s stock worth $445,715,000 after purchasing an additional 3,845,775 shares during the period. Orbis Allan Gray Ltd grew its stake in Scholar Rock by 1,034.5% during the fourth 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. Finally, Wellington Management Group LLP increased its holdings in Scholar Rock by 124.5% in the third quarter. Wellington Management Group LLP now owns 4,545,887 shares of the company’s stock worth $169,289,000 after purchasing an additional 2,521,022 shares in the last quarter. Institutional investors 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).