Scholar Rock (NASDAQ:SRRK) Shares Down 7.1% – Should You Sell?

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

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Evercore reiterated an “outperform” rating and issued a $72.00 target price on shares of Scholar Rock in a research note on Tuesday. Jefferies Financial Group lifted their price objective on shares of Scholar Rock from $57.00 to $65.00 and gave the company a “buy” rating in a report on Monday. BMO Capital Markets upped their price objective on shares of Scholar Rock from $76.00 to $84.00 and gave the stock an “outperform” rating in a research report on Monday. Raymond James Financial increased their target price on shares of Scholar Rock from $65.00 to $72.00 and gave the stock a “strong-buy” rating in a research note on Monday. Finally, Barclays lowered Scholar Rock from an “overweight” rating to a “cautious” rating in a research note on Tuesday. Three investment 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’s stock. According to data from MarketBeat.com, Scholar Rock presently has a consensus rating of “Moderate Buy” and a consensus price target of $66.00.

Scholar Rock Stock Performance

The company has a market cap of $6.01 billion, a PE ratio of -14.31 and a beta of 0.67. The firm’s fifty day moving average is $53.22 and its 200 day moving average is $49.62. 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 posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.84) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.84). During the same quarter in the previous year, the company earned ($0.98) EPS. As a group, research analysts predict that Scholar Rock Holding Corporation will post -3.23 EPS for the current fiscal year.

Insider Activity

In related news, Director Kristina Burow sold 3,053 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were 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. This trade represents a 2.59% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Katie Peng sold 5,446 shares of Scholar Rock stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.88, for a total value of $293,430.48. Following the completion of the sale, the director owned 34,301 shares in the company, valued at approximately $1,848,137.88. The trade was a 13.70% 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. Over the last 90 days, insiders have sold 17,149 shares of company stock worth $923,108. Company insiders own 10.30% of the company’s stock.

Institutional Trading of Scholar Rock

A number of institutional investors have recently made changes to their positions in SRRK. BlackRock Inc. acquired a new position in Scholar Rock in the 2nd quarter valued at $522,175,000. Redmile Group LLC raised its position in shares of Scholar Rock by 73.7% in the first quarter. Redmile Group LLC now owns 9,066,621 shares of the company’s stock valued at $445,715,000 after buying an additional 3,845,775 shares during the last quarter. Jennison Associates LLC lifted its stake in shares of Scholar Rock by 19.5% in the first quarter. Jennison Associates LLC now owns 3,340,492 shares of the company’s stock worth $164,219,000 after buying an additional 545,304 shares in the last quarter. Jupiter Topco LLC purchased a new position in shares of Scholar Rock in the second quarter worth about $123,279,000. Finally, Janus Henderson Group PLC lifted its stake in shares of Scholar Rock by 26.1% in the first quarter. Janus Henderson Group PLC now owns 2,236,837 shares of the company’s stock worth $109,891,000 after buying an additional 462,669 shares in the last quarter. 91.08% of the stock is owned by institutional investors and hedge funds.

About Scholar Rock

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.