Scholar Rock Holding Corporation [NASDAQ: SRRK] gained 10.91% on the last trading session, reaching $5.39 price per share at the time. The company report on June 17, 2022 that Scholar Rock Announces $205 Million Registered Direct Offering.
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Scholar Rock (NASDAQ: SRRK), a Phase 3, clinical-stage biopharmaceutical company focused on the treatment of serious diseases in which protein growth factors play a fundamental role, today announced that it has entered into a securities purchase agreement with certain institutional investors to sell, in a registered direct offering, 16,326,530 shares of common stock and, in lieu of common stock, pre-funded warrants to purchase 25,510,205 shares of common stock, and accompanying warrants to purchase 10,459,181 shares of common stock, at a price of $4.90 per share and accompanying warrant or $4.8999 per pre-funded warrant and accompanying warrant, for total gross proceeds of approximately $205 million, before deducting placement agent commissions and estimated offering expenses. The accompanying warrants will be immediately exercisable and expire on December 31, 2025 and have an exercise price of $7.35 per share. The offering is expected to close on June 22, 2022, subject to the satisfaction of customary closing conditions.
Scholar Rock intends to use the net proceeds from the offering, together with existing cash, cash equivalents and investments, to advance its ongoing and future clinical programs (including the development of apitegromab in SMA through the anticipated Phase 3 SAPPHIRE topline data readout and SRK-181 in immuno-oncology), to further develop its technology platform and to continue to advance its preclinical pipeline, as well as other ongoing research and development activities and for general corporate purposes.
Scholar Rock Holding Corporation represents 37.46 million in outstanding shares, while the company has a total market value of $171.62 million with the latest information. SRRK stock price has been found in the range of $5.05 to $8.78.
If compared to the average trading volume of 568.43K shares, SRRK reached a trading volume of 32367607 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Scholar Rock Holding Corporation [SRRK]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SRRK shares is $28.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SRRK stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
H.C. Wainwright have made an estimate for Scholar Rock Holding Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 23, 2022. While these analysts kept the previous recommendation, Jefferies dropped their target price from $52 to $28. The new note on the price target was released on December 22, 2021, representing the official price target for Scholar Rock Holding Corporation stock. Previously, the target price had yet another raise to $56, while Piper Sandler analysts kept a Overweight rating on SRRK stock.
The Average True Range (ATR) for Scholar Rock Holding Corporation is set at 0.82, with the Price to Sales ratio for SRRK stock in the period of the last 12 months amounting to 3.63. The Price to Book ratio for the last quarter was 1.18, with the Price to Cash per share for the same quarter was set at 6.60.
Trading performance analysis for SRRK stock
Scholar Rock Holding Corporation [SRRK] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.58. With this latest performance, SRRK shares gained by 2.08% in over the last four-week period, additionally sinking by -77.67% over the last 6 months – not to mention a drop of -82.61% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SRRK stock in for the last two-week period is set at 45.95, with the RSI for the last a single of trading hit 51.60, and the three-weeks RSI is set at 41.86 for Scholar Rock Holding Corporation [SRRK]. The present Moving Average for the last 50 days of trading for this stock 6.88, while it was recorded at 5.03 for the last single week of trading, and 19.71 for the last 200 days.
Scholar Rock Holding Corporation [SRRK]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Scholar Rock Holding Corporation [SRRK] shares currently have an operating margin of -690.48 and a Gross Margin at +52.04. Scholar Rock Holding Corporation’s Net Margin is presently recorded at -700.46.
Return on Equity for this stock declined to -60.90, with Return on Assets sitting at -38.05.
Scholar Rock Holding Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 6.80 and a Current Ratio set at 6.80.
An analysis of insider ownership at Scholar Rock Holding Corporation [SRRK]
There are presently around $168 million, or 99.72% of SRRK stock, in the hands of institutional investors. The top three institutional holders of SRRK stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 5,731,743, which is approximately 8.915% of the company’s market cap and around 1.70% of the total institutional ownership; FMR LLC, holding 5,295,505 shares of the stock with an approximate value of $28.54 million in SRRK stocks shares; and ARTAL GROUP S.A., currently with $13.21 million in SRRK stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Scholar Rock Holding Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 54 institutional holders increased their position in Scholar Rock Holding Corporation [NASDAQ:SRRK] by around 3,666,228 shares. Additionally, 41 investors decreased positions by around 2,204,375 shares, while 15 investors held positions by with 25,335,595 shares. The mentioned changes placed institutional holdings at 31,206,198 shares, according to the latest SEC report filing. SRRK stock had 20 new institutional investments in for a total of 1,719,050 shares, while 17 institutional investors sold positions of 765,095 shares during the same period.