Scholar Rock Gains Analyst Attention with Outperform Rating

Scholar Rock (NASDAQ: SRRK) has attracted new attention from analysts as Leerink Partners initiated coverage on the stock with an outperform rating and a price target of $51.00. This development, noted in a research note released on Monday, reflects growing confidence in the biopharmaceutical company’s prospects.

Several other equity analysts have also weighed in on Scholar Rock recently. Cantor Fitzgerald assigned an “overweight” rating on July 17, while Lifesci Capital upgraded the stock to a “strong-buy” rating on June 3. Raymond James Financial set a target price of $53.00 with a “strong-buy” rating on July 30, and Wedbush reaffirmed an “outperform” rating with a target price of $50.00 on June 18. In contrast, BMO Capital Markets lowered its target from $57.00 to $45.00, maintaining an “outperform” rating as of August 7.

Analysts’ ratings indicate strong support for the stock, with two giving it a “strong buy” and nine others assigning a “buy” rating. According to MarketBeat, Scholar Rock currently holds a consensus rating of “buy” and a consensus target price of $46.33.

Stock Performance and Financial Metrics

On the morning of Monday, Scholar Rock’s stock opened at $33.67. The company boasts a market capitalization of $3.24 billion and has a price-to-earnings ratio of -11.57. The stock’s volatility is relatively low, with a beta of 0.36. Over the past year, Scholar Rock reached a low of $6.76 and a high of $46.98.

The company reported its quarterly earnings on August 6, revealing a loss of ($0.98) earnings per share, which fell short of the consensus estimate of ($0.66) by ($0.32). Comparatively, the previous year’s quarter saw earnings of ($0.60) per share. Analysts project that Scholar Rock will report earnings of ($2.42) per share for the current fiscal year.

Insider Activity and Institutional Investment

Recent insider transactions have also drawn attention. On July 8, insider Mo Qatanani sold 24,066 shares at an average price of $34.44, totaling approximately $828,833.04. This sale reduced Qatanani’s holdings by 17.24%, leaving him with 115,495 shares valued at about $3,977,647.80. Another significant transaction occurred on June 23, when Director Jeffrey S. Flier sold 20,316 shares for $654,987.84, marking a 45.77% decrease in his ownership.

In the last quarter, insiders sold a combined total of 66,654 shares worth approximately $2,299,310. Currently, insiders own about 13.30% of Scholar Rock’s stock.

Institutional investors have also recently adjusted their positions in Scholar Rock. CWM LLC increased its stake by 152.8% in the first quarter, acquiring an additional 602 shares for a total of 996 shares valued at around $32,000. Other institutional players, including Federated Hermes Inc. and GF Fund Management CO. LTD., have also made notable investments. Approximately 91.08% of Scholar Rock’s shares are now held by institutional investors and hedge funds.

About Scholar Rock

Founded to innovate in the biopharmaceutical sector, Scholar Rock focuses on developing therapies that harness protein growth factor signaling to treat serious diseases. Its lead product candidate, Apitegromab, is currently undergoing Phase 3 clinical trials for spinal muscular atrophy. Additionally, the company is advancing SRK-181, which has completed Phase 1 trials for treating cancer resistant to checkpoint inhibitor therapies.

As Scholar Rock continues to receive analyst support and expands its clinical pipeline, investor interest is expected to grow, positioning the company for potential future success in the competitive biopharmaceutical landscape.