Design Therapeutics (NASDAQ:DSGN) Reaches New 1-Year High Following Earnings Beat

Key Points

• Design Therapeutics shares climbed to a new 52‑week high (intraday $15.06, last $14.93) after reporting a Q loss per share of ($0.29) which beat the consensus loss of ($0.36) by $0.07.
• Analyst and institutional sentiment is broadly positive — the stock carries a consensus Moderate Buy rating with an average target of $15.20 (Oppenheimer $18 target) while heavyweight investors like Baker Bros. and other institutions have materially increased holdings, with institutions owning about 56.64% of shares.

Design Therapeutics, Inc. (NASDAQ:DSGN - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $15.06 and last traded at $14.9330, with a volume of 62859 shares changing hands. The stock had previously closed at $12.81.

The company reported ($0.29) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.36) by $0.07.

Analysts Set New Price Targets

Several equities analysts recently issued reports on DSGN shares. Jefferies Financial Group started coverage on shares of Design Therapeutics in a report on Monday, March 16th. They set a "buy" rating and a $15.00 price objective on the stock. Royal Bank Of Canada lifted their price target on shares of Design Therapeutics from $13.00 to $14.00 and gave the stock an "outperform" rating in a report on Tuesday, March 10th. Oppenheimer began coverage on shares of Design Therapeutics in a research note on Wednesday, January 7th. They set an "outperform" rating and a $18.00 price objective for the company. Piper Sandler restated an "overweight" rating on shares of Design Therapeutics in a research report on Wednesday. Finally, Wall Street Zen upgraded shares of Design Therapeutics from a "sell" rating to a "hold" rating in a research report on Saturday, February 14th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $15.20.

Institutional Investors Weigh In On Design Therapeutics

Large investors have recently modified their holdings of the company. DLD Asset Management LP purchased a new stake in shares of Design Therapeutics in the 3rd quarter valued at approximately $376,000. China Universal Asset Management Co. Ltd. increased its position in shares of Design Therapeutics by 206.8% in the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 34,982 shares of the company's stock valued at $263,000 after purchasing an additional 23,580 shares during the last quarter. Russell Investments Group Ltd. increased its position in shares of Design Therapeutics by 69.6% in the 3rd quarter. Russell Investments Group Ltd. now owns 6,377 shares of the company's stock valued at $48,000 after purchasing an additional 2,618 shares during the last quarter. Strs Ohio increased its position in shares of Design Therapeutics by 77.4% in the 1st quarter. Strs Ohio now owns 44,700 shares of the company's stock valued at $476,000 after purchasing an additional 19,500 shares during the last quarter. Finally, Baker BROS. Advisors LP increased its position in shares of Design Therapeutics by 30.4% in the 4th quarter. Baker BROS. Advisors LP now owns 2,233,099 shares of the company's stock valued at $20,946,000 after purchasing an additional 520,217 shares during the last quarter. 56.64% of the stock is owned by hedge funds and other institutional investors.

Design Therapeutics Stock Performance

The stock's 50-day simple moving average is $11.21 and its 200 day simple moving average is $9.60. The company has a market capitalization of $959.39 million, a PE ratio of -12.49 and a beta of 1.57.

Design Therapeutics Company Profile

Design Therapeutics, Inc a biopharmaceutical company, researches, designs, develops, and commercializes small molecule therapeutic drugs for the treatment of genetic diseases in the United States. The company utilizes its GeneTAC platform to design and develop therapeutic candidates for inherited diseases caused by nucleotide repeat expansion. Its lead product candidates for potentially disease-modifying treatment comprises Friedreich Ataxia, a monogenic, autosomal recessive, progressive multi-system disease that affects organ systems dependent on mitochondrial function that brings to neurological, cardiac, and metabolic dysfunction; Myotonic Dystrophy Type-1, a dominantly-inherited, monogenic progressive neuromuscular disease affecting skeletal muscle, heart, brain, and other organs; Fuchs Endothelial Corneal Dystrophy, a genetic eye disease characterized by bilateral degeneration of corneal endothelial cells and progressive loss of vision; and Huntington's Disease, a dominantly inherited, monogenic neurodegenerative disease characterized by movement, cognitive, and psychiatric disorders.

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