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

Scholar Rock Holding Corporation (NASDAQ:SRRK)’s stock 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.

Wall Street Analyst Weigh In

SRRK has been the topic of a number of analyst reports. Barclays boosted their price target on Scholar Rock from $45.00 to $52.00 and gave the stock an “overweight” rating in a research report on Wednesday, December 17th. JPMorgan Chase & Co. increased their target price on Scholar Rock from $46.00 to $47.00 and gave the stock an “overweight” rating in a research note on Tuesday, November 18th. Wolfe Research initiated coverage on shares of Scholar Rock in a report on Tuesday, November 18th. They issued an “outperform” rating and a $42.00 target price for the company. Cantor Fitzgerald restated an “overweight” rating on shares of Scholar Rock in a report on Thursday, December 11th. Finally, HC Wainwright reissued a “buy” rating and issued a $58.00 target price on shares of Scholar Rock in a report on Tuesday. Four investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $51.14.

Scholar Rock Stock Performance

The business has a 50-day moving average of $45.32 and a 200 day moving average of $38.99. The company has a debt-to-equity ratio of 0.41, a current ratio of 6.30 and a quick ratio of 6.30. The company has a market cap of $4.78 billion, a PE ratio of -14.86 and a beta of 0.70.

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

Insider Transactions at Scholar Rock

In other Scholar Rock news, CFO Vikas Sinha sold 16,755 shares of Scholar Rock stock in a transaction on Tuesday, January 13th. The shares were 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 $24,904,561.50. This trade represents a 2.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Akshay Vaishnaw sold 20,438 shares of Scholar Rock stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $42.70, for a total value of $872,702.60. Following the completion of the transaction, the insider owned 595,767 shares of the company’s stock, valued at approximately $25,439,250.90. This represents a 3.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 344,932 shares of company stock valued at $15,371,225 in the last 90 days. Company insiders own 13.30% of the company’s stock.

Institutional Trading of Scholar Rock

A number of hedge funds have recently added to or reduced their stakes in the business. Siren L.L.C. increased its position in Scholar Rock by 17.0% during the 4th quarter. Siren L.L.C. now owns 10,825,013 shares of the company’s stock valued at $476,842,000 after purchasing an additional 1,575,008 shares during the period. Wellington Management Group LLP boosted its stake in shares of Scholar Rock by 26.7% during the fourth quarter. Wellington Management Group LLP now owns 5,759,428 shares of the company’s stock valued at $253,703,000 after purchasing an additional 1,213,541 shares in the last quarter. Vanguard Group Inc. increased its holdings in Scholar Rock by 5.7% during the fourth quarter. Vanguard Group Inc. now owns 5,195,465 shares of the company’s stock valued at $228,860,000 after buying an additional 280,538 shares during the period. State Street Corp raised its stake in Scholar Rock by 7.2% in the fourth quarter. State Street Corp now owns 4,034,434 shares of the company’s stock worth $177,717,000 after buying an additional 271,331 shares in the last quarter. Finally, Orbis Allan Gray Ltd lifted its holdings 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 buying an additional 3,126,677 shares during the period. 91.08% of the stock is owned by hedge funds and other institutional investors.

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).