Scholar Rock (NASDAQ:SRRK) Shares Gap Down – Here’s Why

Shares of Scholar Rock Holding Co. (NASDAQ:SRRK) gapped down before the market opened on Wednesday . The stock had previously closed at $44.52, but opened at $41.30. Scholar Rock shares last traded at $43.43, with a volume of 108,403 shares.

Analyst Ratings Changes

Several analysts have recently weighed in on SRRK shares. 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 report on Tuesday, November 26th. BMO Capital Markets boosted their price target on shares of Scholar Rock from $34.00 to $38.00 and gave the company an “outperform” rating in a research report on Friday, October 11th. Piper Sandler raised their price objective on Scholar Rock from $28.00 to $42.00 and gave the stock an “overweight” rating in a report on Tuesday, October 15th. Wedbush lifted their target price on Scholar Rock from $40.00 to $47.00 and gave the stock an “outperform” rating in a research report on Monday, November 25th. Finally, JPMorgan Chase & Co. upped their target price on Scholar Rock from $18.00 to $31.00 and gave the company an “overweight” rating in a research report on Monday, October 14th. Six investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, Scholar Rock has a consensus rating of “Buy” and an average target price of $40.43.

Scholar Rock Trading Down 6.6 %

The company has a quick ratio of 3.88, a current ratio of 3.88 and a debt-to-equity ratio of 0.63. The company has a market cap of $3.89 billion, a price-to-earnings ratio of -17.69 and a beta of 0.58. The business has a fifty day simple moving average of $30.17 and a 200 day simple moving average of $16.36.

Insider Activity at Scholar Rock

In related news, Director Srinivas Akkaraju sold 1,175,713 shares of the business’s stock in a transaction dated Monday, October 7th. The shares were sold at an average price of $29.25, for a total value of $34,389,605.25. Following the sale, the director now directly owns 5,612,896 shares in the company, valued at $164,177,208. The trade was a 17.32 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Tracey Sacco sold 30,000 shares of Scholar Rock stock in a transaction dated Monday, October 7th. The stock was 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 of the company’s stock, valued at approximately $1,262,681.70. The trade was a 37.84 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,823,322 shares of company stock worth $56,411,627 over the last 90 days. Company insiders own 19.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Clearbridge Investments LLC acquired a new stake in shares of Scholar Rock during the second quarter valued at $6,223,000. SG Americas Securities LLC acquired a new position in shares of Scholar Rock in the third quarter valued at approximately $1,093,000. Exchange Traded Concepts LLC lifted its stake in shares of Scholar Rock by 74.6% during the third quarter. Exchange Traded Concepts LLC now owns 101,679 shares of the company’s stock valued at $814,000 after buying an additional 43,457 shares during the period. Marshall Wace LLP boosted its position in Scholar Rock by 1,051.3% during the second quarter. Marshall Wace LLP now owns 487,285 shares of the company’s stock worth $4,059,000 after acquiring an additional 444,961 shares during the last quarter. Finally, AQR Capital Management LLC grew its stake in Scholar Rock by 287.2% in the 2nd quarter. AQR Capital Management LLC now owns 39,754 shares of the company’s stock worth $331,000 after acquiring an additional 29,487 shares during the period. 91.08% of the stock is owned by hedge funds and other institutional investors.

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.