Wedbush Has Negative Outlook of Scholar Rock FY2024 Earnings

Scholar Rock Holding Co. (NASDAQ:SRRK) – Wedbush reduced their FY2024 earnings per share estimates for Scholar Rock in a note issued to investors on Monday, November 25th. Wedbush analyst D. Nierengarten now anticipates that the company will post earnings per share of ($2.39) for the year, down from their prior estimate of ($2.28). Wedbush currently has a “Outperform” rating and a $47.00 target price on the stock. The consensus estimate for Scholar Rock’s current full-year earnings is ($2.42) per share. Wedbush also issued estimates for Scholar Rock’s Q4 2024 earnings at ($0.53) EPS, Q1 2025 earnings at ($0.54) EPS, Q2 2025 earnings at ($0.53) EPS, Q3 2025 earnings at ($0.52) EPS, Q4 2025 earnings at ($0.53) EPS, FY2025 earnings at ($2.13) EPS, FY2026 earnings at ($1.65) EPS, FY2027 earnings at ($0.16) EPS and FY2028 earnings at $0.81 EPS.

Several other research firms have also recently commented on SRRK. BMO Capital Markets raised their target price on shares of Scholar Rock from $34.00 to $38.00 and gave the stock an “outperform” rating in a research report on Friday, October 11th. Truist Financial upped their price target on Scholar Rock from $36.00 to $45.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. Piper Sandler boosted their target price on shares of Scholar Rock from $28.00 to $42.00 and gave the company an “overweight” rating in a report on Tuesday, October 15th. JPMorgan Chase & Co. increased their price target on shares of Scholar Rock from $18.00 to $31.00 and gave the stock an “overweight” rating in a research note on Monday, October 14th. Finally, HC Wainwright boosted their price objective on shares of Scholar Rock from $40.00 to $50.00 and gave the stock a “buy” rating in a research note on Tuesday. Six investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $40.43.

Scholar Rock Stock Up 4.6 %

Shares of NASDAQ:SRRK opened at $39.90 on Thursday. The company has a market cap of $3.74 billion, a PE ratio of -16.23 and a beta of 0.47. Scholar Rock has a 1 year low of $6.76 and a 1 year high of $43.38. The stock’s 50-day moving average is $24.88 and its 200 day moving average is $14.70. The company has a debt-to-equity ratio of 0.63, a current ratio of 3.88 and a quick ratio of 3.88.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Barclays PLC raised its stake in shares of Scholar Rock by 103.4% in the third quarter. Barclays PLC now owns 165,449 shares of the company’s stock worth $1,324,000 after buying an additional 84,118 shares during the period. Geode Capital Management LLC lifted its holdings in Scholar Rock by 8.5% during the third quarter. Geode Capital Management LLC now owns 1,543,025 shares of the company’s stock valued at $12,361,000 after purchasing an additional 120,489 shares in the last quarter. Wellington Management Group LLP boosted its position in shares of Scholar Rock by 16.2% in the third 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 during the period. Sphera Funds Management LTD. purchased a new stake in shares of Scholar Rock in the third quarter worth $1,337,000. Finally, Quarry LP raised its position in shares of 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 during the period. 91.08% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Scholar Rock

In related news, major shareholder Public Equities L.P. Invus sold 409,433 shares of the company’s stock in a transaction that occurred on Monday, November 25th. The stock was sold at an average price of $38.49, for a total value of $15,759,076.17. Following the transaction, the insider now directly owns 10,850,005 shares of the company’s stock, valued at approximately $417,616,692.45. This represents a 3.64 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Edward H. Myles sold 206,240 shares of the stock in a transaction on Monday, October 7th. The shares were sold at an average price of $26.56, for a total value of $5,477,734.40. Following the sale, the chief financial officer now owns 161,088 shares in the company, valued at approximately $4,278,497.28. This represents a 56.15 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,823,322 shares of company stock valued at $56,411,627 in the last quarter. 19.20% of the stock is owned by insiders.

About Scholar Rock

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.