Scholar Rock (NASDAQ:SRRK) Upgraded at Jefferies Financial Group

Jefferies Financial Group upgraded shares of Scholar Rock (NASDAQ:SRRK) to a strong-buy rating in a report released on Monday,Zacks reports.

Several other research firms also recently weighed in on SRRK. Citigroup boosted their price target on shares of Scholar Rock from $60.00 to $74.00 and gave the stock a “buy” rating in a research note on Monday. Evercore reissued an “outperform” rating and issued a $72.00 price objective on shares of Scholar Rock in a research note on Tuesday. HC Wainwright lifted their price objective on shares of Scholar Rock from $65.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday. Piper Sandler upped their target price 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, UBS Group reiterated a “buy” rating on shares of Scholar Rock in a report on Tuesday. Four analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $66.00.

Scholar Rock Trading Down 1.3%

SRRK opened at $49.37 on Monday. Scholar Rock has a 52 week low of $27.07 and a 52 week high of $61.76. The company has a quick ratio of 7.02, a current ratio of 7.02 and a debt-to-equity ratio of 0.77. The business has a fifty day simple moving average of $53.22 and a 200-day simple moving average of $49.62. The firm has a market cap of $6.01 billion, a P/E ratio of -14.31 and a beta of 0.67.

Scholar Rock (NASDAQ:SRRK) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.84) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.84). During the same period in the previous year, the company posted ($0.98) earnings per share. On average, equities analysts expect that Scholar Rock will post -3.23 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Kristina Burow sold 3,053 shares of Scholar Rock stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.74, for a total value of $164,068.22. Following the completion of the transaction, the director owned 114,657 shares in the company, valued at approximately $6,161,667.18. This trade represents a 2.59% decrease in their position. The sale was disclosed in a filing 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 Michael Gilman sold 2,544 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.87, for a total value of $137,045.28. Following the transaction, the director directly owned 59,511 shares of the company’s stock, valued at approximately $3,205,857.57. This represents a 4.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 17,149 shares of company stock worth $923,108. Corporate insiders own 10.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of Scholar Rock in the 2nd quarter valued at about $522,175,000. Redmile Group LLC boosted its holdings in Scholar Rock by 73.7% in the first quarter. Redmile Group LLC now owns 9,066,621 shares of the company’s stock valued at $445,715,000 after purchasing an additional 3,845,775 shares in the last quarter. Jennison Associates LLC increased its stake in Scholar Rock by 19.5% in the first quarter. Jennison Associates LLC now owns 3,340,492 shares of the company’s stock valued at $164,219,000 after purchasing an additional 545,304 shares during the last quarter. Jupiter Topco LLC purchased a new position in Scholar Rock in the second quarter valued at approximately $123,279,000. Finally, Janus Henderson Group PLC raised its holdings in Scholar Rock by 26.1% during the first quarter. Janus Henderson Group PLC now owns 2,236,837 shares of the company’s stock worth $109,891,000 after purchasing an additional 462,669 shares in the last quarter. 91.08% of the stock is owned by institutional investors and hedge funds.

Scholar Rock News Summary

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.