In a recent transaction, Edward H. Myles, the Chief Operating Officer and Chief Financial Officer of Scholar Rock Holding Corp (NASDAQ:SRRK), sold a significant amount of company shares. The sale, which took place on October 8th, involved 37,187 shares at prices ranging from $34.50 to $35.32, resulting in a total value of approximately $1.29 million. This transaction was part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for buying and selling stocks at a future date.
Myles's sale of shares at an average price of $34.8955 per share was disclosed in a filing with the Securities and Exchange Commission. The exact number of shares sold at each price point within the range can be provided upon request. Following the sale, Myles still holds a substantial position in the company, with 161,088 shares of Scholar Rock remaining in his direct ownership.
The same day, Myles also acquired 37,187 shares at $10.00 each, amounting to a total transaction value of $371,870. These shares were acquired through the exercise of stock options, which are set to vest in sixteen quarterly installments over four years. The first of these installments vested in April 2023, with the condition that Myles maintains a service relationship with the company on each vesting date.
Scholar Rock Holding Corp, based in Cambridge, Massachusetts, is a biopharmaceutical company focused on the discovery and development of innovative medicines for serious diseases. The company's stock performance and insider transactions are closely monitored by investors, as they can provide valuable insights into the company's financial health and executive confidence in the firm's prospects.
Investors and stakeholders in Scholar Rock can request more detailed information about these transactions from the reporting person or the company.
In other recent news, Scholar Rock announced positive results from its Phase 3 SAPPHIRE clinical trial, evaluating apitegromab in patients with spinal muscular atrophy (SMA). The trial showed a statistically significant improvement in motor function in patients treated with apitegromab. The company plans to submit applications to the FDA and EMA in the first quarter of 2025, seeking priority review and accelerated assessment.
The firm H.C. Wainwright has increased its price target for Scholar Rock to $35.00 from the previous $30.00, maintaining a Buy rating on the stock. Analysts from TD (TSX:TD) Cowen, Truist Securities, and BMO (TSX:BMO) Capital Markets have also maintained a Buy rating on Scholar Rock, bolstered by these trial results.
Scholar Rock has also unveiled plans for a public offering aimed at raising $275 million. The net proceeds will be used to fund various projects, including the commercialization of apitegromab.
In other recent developments, Scholar Rock has appointed Beth Shafer, Ph.D., as Chief Business Officer, tasked with guiding the company's long-term corporate and business development strategy. The company has also made significant strides with its apitegromab EMBRAZE study in obesity, with preliminary data expected in the second quarter of 2025.
InvestingPro Insights
Scholar Rock Holding Corp (NASDAQ:SRRK) has experienced significant market activity recently, aligning with the insider transactions reported. According to InvestingPro data, the company's stock has shown remarkable performance, with a 269.73% return over the past week and a 190.77% return over the last month. This surge in stock price contextualizes the timing of Edward H. Myles's stock sale and option exercise.
InvestingPro Tips highlight that SRRK's RSI suggests the stock is in overbought territory, which may explain the CFO's decision to sell shares at this time. Additionally, the stock generally trades with high price volatility, a characteristic that savvy investors and executives often consider when making trading decisions.
Despite the recent price surge, it's worth noting that Scholar Rock operates with a moderate level of debt and its liquid assets exceed short-term obligations. This financial stability could be reassuring for long-term investors, even as the company faces challenges such as weak gross profit margins and expectations of a net income drop this year.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for SRRK, providing deeper insights into the company's financial health and market position. These additional tips can be valuable for investors looking to make informed decisions in light of recent insider activities and market movements.
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