Scholar Rock Holding (NASDAQ:SRRK) stock gained over 5% in yesterday’s extended trade after one of its more than 10% owners, Invus Public Equities, L.P., revealed a huge purchase of SRRK shares. Importantly, the insider’s purchase of SRRK stock comes despite 33% growth in the share price over the past month. The move signals the investment advisory firm’s confidence in the SRRK’s future growth.
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The biotechnology company is focused on developing therapies for serious diseases by targeting the TGF-beta superfamily of proteins.
As per an SEC filing, Invus Public Equities bought 2.2 million shares of Scholar Rock at a weighted average price of $6.86 per share on October 12. The transaction’s total value stands at $15.1 million.
It is worth highlighting that the investment advisor bought shares as part of Scholar Rock’s underwritten offering of 14.27 million shares at a price of $9 per share. After the latest purchase, the total value of the firm’s holdings in SRRK stock now stands at about $88.3 million.
As per the data collected by TipRanks, the insider has had a success rate of 60% in its transactions over the past three months, with an average return of 9.1% per transaction.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Recent Developments
The recent strong performance of Scholar Rock’s stock can be attributed to the company’s achievement in completing patient enrollments in its Phase 3 SAPPHIRE trial for apitegromab, a treatment for spinal muscular atrophy (SMA).
Further, the company disclosed plans to advance the development of SRK-439. SRRK plans to initiate a Phase 2 proof-of-concept trial of apitegromab in combination with a GLP-1 receptor agonist in obesity in 2024.
What is the Price Target for Scholar Rock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SRRK stock based on five unanimous Buys assigned in the past three months. Meanwhile, the average price target of $25.20 per share implies about 205.1% upside potential.
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