Scholar Rock (NASDAQ:SRRK) Raised to Strong-Buy at Jefferies Financial Group

Scholar Rock (NASDAQ:SRRK) was upgraded by investment analysts at Jefferies Financial Group to a “strong-buy” rating in a note issued to investors on Monday, Zacks reports.

Other analysts have also issued reports about the company. Evercore reissued an “outperform” rating and set a $72.00 target price on shares of Scholar Rock in a report on Tuesday. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Scholar Rock in a research note on Thursday, June 18th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Scholar Rock in a research report on Friday, July 17th. Piper Sandler increased their price objective on shares of Scholar Rock from $60.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday. Finally, Wedbush reiterated an “outperform” rating and set a $64.00 price objective on shares of Scholar Rock in a research note on Tuesday. Four equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Sell rating to the stock. According to MarketBeat.com, Scholar Rock currently has an average rating of “Buy” and an average target price of $66.00.

Scholar Rock Trading Down 1.3%

Shares of SRRK stock opened at $49.37 on Monday. The stock has a market cap of $6.01 billion, a P/E ratio of -14.31 and a beta of 0.67. Scholar Rock has a 1 year low of $27.07 and a 1 year high of $61.76. The company has a current ratio of 7.02, a quick ratio of 7.02 and a debt-to-equity ratio of 0.77. The stock has a 50 day simple moving average of $53.22 and a 200 day simple moving average of $49.62.

Scholar Rock (NASDAQ:SRRK) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.84) EPS for the quarter, hitting analysts’ consensus estimates of ($0.84). During the same period in the prior year, the business posted ($0.98) EPS. On average, research analysts predict that Scholar Rock will post -3.23 earnings per share for the current fiscal year.

Insider Activity

In other Scholar Rock news, Director Kristina Burow sold 3,053 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $53.74, for a total value of $164,068.22. Following the sale, the director owned 114,657 shares of the company’s stock, valued at approximately $6,161,667.18. This trade represents a 2.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Joshua Reed sold 3,053 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $53.74, for a total value of $164,068.22. Following the completion of the sale, the director directly owned 19,518 shares in the company, valued at approximately $1,048,897.32. This represents a 13.53% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 17,149 shares of company stock valued at $923,108. Corporate insiders own 10.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SRRK. Nicholas Investment Partners LP bought a new position in shares of Scholar Rock in the 2nd quarter valued at $4,968,000. BlackRock Inc. bought a new stake in Scholar Rock during the 2nd quarter worth $522,175,000. Geode Capital Management LLC grew its position in Scholar Rock by 4.1% during the 4th quarter. Geode Capital Management LLC now owns 2,034,024 shares of the company’s stock worth $89,616,000 after acquiring an additional 79,214 shares during the last quarter. Squarepoint Ops LLC increased its holdings in Scholar Rock by 484.5% in the 2nd quarter. Squarepoint Ops LLC now owns 291,996 shares of the company’s stock worth $16,060,000 after purchasing an additional 242,041 shares in the last quarter. Finally, Norges Bank acquired a new position in Scholar Rock in the 4th quarter worth about $91,603,000. Institutional investors own 91.08% of the company’s stock.

More Scholar Rock News

Here are the key news stories impacting Scholar Rock this week:

• Positive Sentiment: FDA approval strengthens the growth outlook. Approval of ISEMBYLD expands Scholar Rock’s commercial opportunity in spinal muscular atrophy and could support a significant transition from a development-stage biotech to a revenue-generating company. Scholar Rock Wins FDA Approval for ISEMBYLD
• Positive Sentiment: Analyst sentiment has improved. Jefferies upgraded SRRK to “strong buy,” while Wedbush maintained an “outperform” rating. HC Wainwright kept a “buy” rating and a $70 price target, well above the referenced $49.37 price, implying substantial potential upside if the launch performs as expected. Wedbush Reaffirms Outperform Rating
• Positive Sentiment: Long-term earnings forecasts improved. HC Wainwright raised its EPS estimates for 2027, 2028, 2029 and 2030, with projections now reaching positive earnings in 2029 and $1.44 per share in 2030. These revisions suggest analysts expect ISEMBYLD to drive improving profitability over time. Scholar Rock Fair Value Edges Higher
• Neutral Sentiment: Valuation has been revised upward, but execution remains important. Fair-value estimates increased following the approval and analyst revisions, although SRRK remains loss-making and its current valuation depends heavily on future ISEMBYLD adoption.
• Negative Sentiment: Early commercialization may be slower than hoped. Truist cited FDA-mandated safety requirements as potential launch friction, which could increase prescribing complexity, delay uptake or raise commercialization costs. Scholar Rock Faces Early ISEMBYLD Launch Friction
• Negative Sentiment: Analyst views are not unanimous. Barclays downgraded the stock despite the FDA approval, signaling concerns that the approval may already be reflected in the valuation or that launch risks could limit near-term upside. Scholar Rock Downgraded at Barclays

Scholar Rock Company Profile

Scholar Rock, Inc is a biopharmaceutical company focused on developing medicines that selectively target growth factors in their latent forms. The company’s approach is designed to modulate the activation of growth factors in specific tissues, with the goal of addressing diseases in which these biological pathways contribute to impaired function or abnormal tissue growth.

Scholar Rock’s lead program is apitegromab, a monoclonal antibody designed to inhibit the activation of myostatin. The company has studied apitegromab as a potential treatment for spinal muscular atrophy, a genetic neuromuscular disorder that causes progressive muscle weakness and loss of motor function.