Scholar Rock (NASDAQ:SRRK) Upgraded to Strong-Buy at Jefferies Financial Group

Jefferies Financial Group upgraded shares of Scholar Rock (NASDAQ:SRRK) to a strong-buy rating in a report released on Monday,Zacks reports.

A number of other brokerages also recently issued reports on SRRK. HC Wainwright boosted their price target on shares of Scholar Rock from $65.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday. Wedbush reissued an “outperform” rating and issued a $64.00 price objective on shares of Scholar Rock in a research report on Tuesday. Evercore reiterated an “outperform” rating and set a $72.00 target price on shares of Scholar Rock in a research report on Tuesday. Raymond James Financial raised their price objective on Scholar Rock from $65.00 to $72.00 and gave the company a “strong-buy” rating in a research note on Monday. Finally, BMO Capital Markets boosted their target price on shares of Scholar Rock from $76.00 to $84.00 and gave the stock an “outperform” rating in a research report on Monday. Four analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Scholar Rock currently has an average rating of “Buy” and an average target price of $66.00.

Scholar Rock Trading Down 1.3%

NASDAQ SRRK opened at $49.37 on Monday. The firm has a market capitalization of $6.01 billion, a PE ratio of -14.31 and a beta of 0.67. The business’s 50-day moving average price is $53.22 and its two-hundred day moving average price 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 has a 12 month low of $27.07 and a 12 month high of $61.76.

Scholar Rock (NASDAQ:SRRK) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.84) EPS for the quarter, hitting analysts’ consensus estimates of ($0.84). During the same period last year, the business earned ($0.98) earnings per share. On average, analysts expect that Scholar Rock will post -3.23 EPS for the current year.

Insiders Place Their Bets

In related news, Director Michael Gilman sold 2,544 shares of Scholar Rock stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $53.87, for a total value of $137,045.28. Following the sale, the director owned 59,511 shares of the company’s stock, valued at approximately $3,205,857.57. The trade was a 4.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Joshua Reed sold 3,053 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $53.74, for a total value of $164,068.22. Following the completion of the transaction, the director owned 19,518 shares in the company, valued at approximately $1,048,897.32. The trade was a 13.53% decrease in their position. 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. In the last quarter, insiders have sold 17,149 shares of company stock valued at $923,108. Company insiders own 10.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. IFP Advisors Inc grew its position in Scholar Rock by 294.1% during the fourth quarter. IFP Advisors Inc now owns 603 shares of the company’s stock worth $27,000 after buying an additional 450 shares in the last quarter. Allworth Financial LP purchased a new stake in shares of Scholar Rock in the 2nd quarter valued at about $35,000. EverSource Wealth Advisors LLC boosted its position in shares of Scholar Rock by 151.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 872 shares of the company’s stock valued at $38,000 after acquiring an additional 525 shares during the last quarter. Hilton Head Capital Partners LLC purchased a new position in shares of Scholar Rock during the fourth quarter worth about $44,000. Finally, PNC Financial Services Group Inc. increased its position in shares of Scholar Rock by 92.4% in the first quarter. PNC Financial Services Group Inc. now owns 1,270 shares of the company’s stock worth $62,000 after purchasing an additional 610 shares during the last quarter. 91.08% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Scholar Rock

Here are the key news stories impacting Scholar Rock this week:

• Positive Sentiment: FDA approval strengthens the growth outlook. Approval of ISEMBYLD expands Scholar Rock’s commercial opportunity in spinal muscular atrophy and could support a significant transition from a development-stage biotech to a revenue-generating company. Scholar Rock Wins FDA Approval for ISEMBYLD
• Positive Sentiment: Analyst sentiment has improved. Jefferies upgraded SRRK to “strong buy,” while Wedbush maintained an “outperform” rating. HC Wainwright kept a “buy” rating and a $70 price target, well above the referenced $49.37 price, implying substantial potential upside if the launch performs as expected. Wedbush Reaffirms Outperform Rating
• Positive Sentiment: Long-term earnings forecasts improved. HC Wainwright raised its EPS estimates for 2027, 2028, 2029 and 2030, with projections now reaching positive earnings in 2029 and $1.44 per share in 2030. These revisions suggest analysts expect ISEMBYLD to drive improving profitability over time. Scholar Rock Fair Value Edges Higher
• Neutral Sentiment: Valuation has been revised upward, but execution remains important. Fair-value estimates increased following the approval and analyst revisions, although SRRK remains loss-making and its current valuation depends heavily on future ISEMBYLD adoption.
• Negative Sentiment: Early commercialization may be slower than hoped. Truist cited FDA-mandated safety requirements as potential launch friction, which could increase prescribing complexity, delay uptake or raise commercialization costs. Scholar Rock Faces Early ISEMBYLD Launch Friction
• Negative Sentiment: Analyst views are not unanimous. Barclays downgraded the stock despite the FDA approval, signaling concerns that the approval may already be reflected in the valuation or that launch risks could limit near-term upside. Scholar Rock Downgraded at Barclays

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.