10 Most Shorted Stocks That Are Loved by Analysts

5. Scholar Rock Holding Corporation (NASDAQ:SRRK)

Short Interest Percentage: 21.90%

Average Share Price Target: $27.43

Share Price Upside: 223.05%

Scholar Rock Holding Corporation (NASDAQ:SRRK) is a biotechnology firm developing treatments for anemia, muscular atrophy, and cancer. The firm is currently in the early stages of its development pipeline, which means that it is a loss making entity that does not earn either revenue or a profit. Naturally, this means that the prospects for Scholar Rock Holding Corporation (NASDAQ:SRRK) to soar on the stock market are rather low despite the fact that the firm sought to cash in on the weight loss drug trend at its investor day in May 2024. This saw Scholar Rock Holding Corporation (NASDAQ:SRRK) announce  a proof of concept trial of a myostatin inhibitor for patients currently being treated with GLP-1 inhibitors. Myostatin inhibitors encourage muscle growth, but the announcement failed to inject any life into Scholar Rock Holding Corporation (NASDAQ:SRRK)’s shares that are down 51% year to date.

Scholar Rock Holding Corporation (NASDAQ:SRRK) is currently counting on the phase 3 trial of its muscular atrophy treatment called Apitegromab. Phase 3 SAPPHIRE trials are scheduled for the fourth quarter, and the firm hopes to commercially launch the product next year pending approval. Should a commercial launch be successful, it will allow Scholar Rock Holding Corporation (NASDAQ:SRRK) to earn revenue but that might not be enough to impress investors.