Scholar Rock (NASDAQ:SRRK) Shares Gap Down – Should You Sell?

Scholar Rock Holding Co. (NASDAQ:SRRK)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $27.77, but opened at $26.02. Scholar Rock shares last traded at $25.00, with a volume of 1,160,761 shares traded.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Wedbush upped their price objective on shares of Scholar Rock from $27.00 to $37.00 and gave the company an “outperform” rating in a research note on Monday, October 7th. HC Wainwright upped their target price on Scholar Rock from $30.00 to $35.00 and gave the company a “buy” rating in a research report on Monday, October 7th. BMO Capital Markets lifted their price target on Scholar Rock from $34.00 to $38.00 and gave the stock an “outperform” rating in a research report on Friday. Finally, JPMorgan Chase & Co. reduced their price objective on Scholar Rock from $20.00 to $18.00 and set an “overweight” rating for the company in a research note on Thursday, October 3rd. Seven investment analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Buy” and an average target price of $28.25.

Scholar Rock Price Performance

The company has a 50-day moving average of $10.71 and a 200-day moving average of $11.17. The company has a debt-to-equity ratio of 0.36, a quick ratio of 6.04 and a current ratio of 6.04. The stock has a market cap of $2.12 billion, a price-to-earnings ratio of -11.94 and a beta of 0.82.

Scholar Rock (NASDAQ:SRRK) last released its earnings results on Thursday, August 8th. The company reported ($0.60) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.61) by $0.01. During the same period last year, the business posted ($0.47) earnings per share. As a group, equities research analysts predict that Scholar Rock Holding Co. will post -2.38 earnings per share for the current year.

Insider Buying and Selling at Scholar Rock

In other news, CFO Edward H. Myles sold 206,240 shares of the firm’s 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 completion of the sale, the chief financial officer now owns 161,088 shares in the company, valued at approximately $4,278,497.28. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, CFO Edward H. Myles sold 206,240 shares of the stock in a transaction that occurred on Monday, October 7th. The stock was sold at an average price of $26.56, for a total transaction of $5,477,734.40. Following the completion of the transaction, the chief financial officer now directly owns 161,088 shares of the company’s stock, valued at approximately $4,278,497.28. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Srinivas Akkaraju sold 1,175,713 shares of Scholar Rock stock in a transaction that occurred on 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 completion of the sale, the director now owns 5,612,896 shares in the company, valued at approximately $164,177,208. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,415,340 shares of company stock valued at $40,666,088. 19.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Scholar Rock

A number of institutional investors and hedge funds have recently made changes to their positions in SRRK. Jane Street Group LLC boosted its holdings in Scholar Rock by 95.5% during the first quarter. Jane Street Group LLC now owns 244,318 shares of the company’s stock worth $4,339,000 after buying an additional 119,363 shares in the last quarter. Clearbridge Investments LLC purchased a new stake in shares of Scholar Rock during the 2nd quarter worth approximately $6,223,000. Kennedy Capital Management LLC acquired a new stake in shares of Scholar Rock in the 1st quarter worth approximately $4,900,000. Vanguard Group Inc. increased its stake in Scholar Rock by 4.0% in the 1st quarter. Vanguard Group Inc. now owns 2,969,534 shares of the company’s stock valued at $52,739,000 after purchasing an additional 114,550 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new position in Scholar Rock during the third quarter worth $1,093,000. 91.08% of the stock is owned by institutional investors and hedge funds.

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.