Design Therapeutics (NASDAQ:DSGN) Stock Price Down 8% - Should You Sell?

Key Points

• Design Therapeutics shares fell 8% on Monday, trading as low as $14.02 and below the prior close of $15.19, with volume running well under average.
• Analyst sentiment remains generally positive, with the stock carrying an average “Moderate Buy” rating and a consensus price target of $16.50. Recent firms including Oppenheimer, Piper Sandler, and Cantor Fitzgerald maintained or raised bullish views.
• The company recently beat quarterly EPS estimates, reporting a loss of $0.29 per share versus expectations for a $0.36 loss. Despite that beat, analysts still expect a full-year loss of 1.36 EPS.

Design Therapeutics, Inc. (NASDAQ:DSGN - Get Free Report)'s share price traded down 8% on Monday . The stock traded as low as $14.02 and last traded at $13.9750. Approximately 213,731 shares were traded during mid-day trading, a decline of 64% from the average session volume of 598,205 shares. The stock had previously closed at $15.19.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DSGN. Oppenheimer boosted their price objective on shares of Design Therapeutics from $18.00 to $21.00 and gave the company an "outperform" rating in a research report on Monday, May 4th. Piper Sandler reissued an "overweight" rating and set a $20.00 price target on shares of Design Therapeutics in a report on Wednesday, April 29th. Cantor Fitzgerald assumed coverage on Design Therapeutics in a report on Tuesday, May 12th. They set an "overweight" rating on the stock. Wall Street Zen upgraded shares of Design Therapeutics from a "sell" rating to a "hold" rating in a research report on Sunday, May 10th. Finally, Jefferies Financial Group assumed coverage on Design Therapeutics in a research report on Monday, March 16th. They set a "buy" rating and a $15.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $16.50.

Design Therapeutics Stock Down 9.4%

The stock's 50-day moving average is $12.74 and its 200 day moving average is $11.38. The stock has a market capitalization of $859.78 million, a PE ratio of -11.45 and a beta of 1.58.

Design Therapeutics (NASDAQ:DSGN - Get Free Report) last released its earnings results on Tuesday, April 28th. The company reported ($0.29) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.36) by $0.07. As a group, equities research analysts forecast that Design Therapeutics, Inc. will post -1.36 EPS for the current year.

Hedge Funds Weigh In On Design Therapeutics

A number of hedge funds have recently added to or reduced their stakes in DSGN. Torren Management LLC acquired a new position in Design Therapeutics during the fourth quarter worth $26,000. Russell Investments Group Ltd. increased its position in Design Therapeutics by 69.6% during the third quarter. Russell Investments Group Ltd. now owns 6,377 shares of the company's stock worth $48,000 after acquiring an additional 2,618 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of Design Therapeutics during the 4th quarter worth about $67,000. ADAR1 Capital Management LLC bought a new position in Design Therapeutics during the first quarter valued at about $106,000. Finally, Royal Bank of Canada increased its position in shares of Design Therapeutics by 1,681.5% during the first quarter. Royal Bank of Canada now owns 11,366 shares of the company's stock valued at $121,000 after purchasing an additional 10,728 shares during the period. Institutional investors and hedge funds own 56.64% of the company's stock.

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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