HC Wainwright Decreases Earnings Estimates for Scholar Rock

Scholar Rock Holding Co. (NASDAQ:SRRK) – HC Wainwright cut their FY2024 earnings estimates for shares of Scholar Rock in a research report issued on Tuesday, November 12th. HC Wainwright analyst A. Maldonado now expects that the company will earn ($2.54) per share for the year, down from their prior forecast of ($2.43). HC Wainwright has a “Buy” rating and a $40.00 price target on the stock. The consensus estimate for Scholar Rock’s current full-year earnings is ($2.37) per share. HC Wainwright also issued estimates for Scholar Rock’s Q4 2024 earnings at ($0.67) EPS, Q1 2025 earnings at ($0.67) EPS, Q2 2025 earnings at ($0.68) EPS, FY2025 earnings at ($2.65) EPS, FY2026 earnings at ($1.68) EPS, FY2027 earnings at ($1.00) EPS and FY2028 earnings at ($0.10) EPS.

A number of other brokerages have also issued reports on SRRK. JPMorgan Chase & Co. raised their price objective on shares of Scholar Rock from $18.00 to $31.00 and gave the company an “overweight” rating in a report on Monday, October 14th. Piper Sandler lifted their price target on shares of Scholar Rock from $28.00 to $42.00 and gave the stock an “overweight” rating in a report on Tuesday, October 15th. Wedbush restated an “outperform” rating and issued a $37.00 price objective on shares of Scholar Rock in a report on Monday, November 4th. Finally, BMO Capital Markets raised their target price on Scholar Rock from $34.00 to $38.00 and gave the stock an “outperform” rating in a research report on Friday, October 11th. Six analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $34.00.

Scholar Rock Price Performance

Shares of SRRK opened at $26.49 on Friday. The business has a 50-day simple moving average of $20.61 and a two-hundred day simple moving average of $13.61. Scholar Rock has a 12-month low of $6.76 and a 12-month high of $35.38. The stock has a market cap of $2.48 billion, a PE ratio of -11.27 and a beta of 0.47. The company has a quick ratio of 6.04, a current ratio of 3.88 and a debt-to-equity ratio of 0.63.

Insider Buying and Selling

In related news, Director Srinivas Akkaraju sold 1,175,713 shares of the stock in a transaction on Monday, October 7th. The shares were sold at an average price of $29.25, for a total transaction of $34,389,605.25. Following the transaction, the director now directly owns 5,612,896 shares of the company’s stock, valued at $164,177,208. This represents a 17.32 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Tracey Sacco sold 30,000 shares of the company’s stock in a transaction dated Monday, October 7th. The shares were sold at an average price of $25.62, for a total transaction of $768,600.00. Following the transaction, the insider now owns 49,285 shares in the company, valued at $1,262,681.70. This represents a 37.84 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,413,889 shares of company stock valued at $40,652,551 over the last quarter. Insiders own 19.20% of the company’s stock.

Institutional Trading of Scholar Rock

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SRRK. Barclays PLC grew its stake in Scholar Rock by 103.4% in the third quarter. Barclays PLC now owns 165,449 shares of the company’s stock valued at $1,324,000 after acquiring an additional 84,118 shares during the period. Wellington Management Group LLP lifted its holdings in shares of Scholar Rock by 16.2% in the 3rd quarter. Wellington Management Group LLP now owns 199,777 shares of the company’s stock worth $1,600,000 after purchasing an additional 27,801 shares in the last quarter. Sphera Funds Management LTD. acquired a new stake in Scholar Rock in the 3rd quarter valued at $1,337,000. Quarry LP increased its stake in Scholar Rock by 3,443.3% during the 3rd quarter. Quarry LP now owns 4,500 shares of the company’s stock valued at $36,000 after purchasing an additional 4,373 shares in the last quarter. Finally, Point72 Asset Management L.P. raised its holdings in Scholar Rock by 249.7% during the third quarter. Point72 Asset Management L.P. now owns 28,649 shares of the company’s stock worth $229,000 after buying an additional 20,456 shares during the last quarter. 91.08% of the stock is owned by institutional investors.

Scholar Rock Company Profile

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies.