Design Therapeutics (NASDAQ:DSGN) Trading Up 6.8% - Still a Buy?

Key Points

• Shares jumped 6.8% to $11.995 on Monday with about 212,423 shares traded (down ~20% vs. average); the company has a market cap near $750M and is trading above its 50- and 200-day moving averages ($10.38 and $8.86).
• Analysts have grown more positive—RBC, Jefferies and Oppenheimer issued Outperform/Buy ratings and raised targets (to $14, $15 and $18), leaving a consensus rating of Moderate Buy and a consensus target of $15.20.
• Design reported quarterly EPS of -$0.27, beating the -$0.38 estimate, and institutional ownership is substantial (about 56.6%) with several firms (Woodline, Jane Street, Geode, Invesco) adding or increasing positions.

Shares of Design Therapeutics, Inc. (NASDAQ:DSGN - Get Free Report) rose 6.8% on Monday . The stock traded as high as $12.25 and last traded at $11.9950. Approximately 212,423 shares traded hands during trading, a decline of 20% from the average daily volume of 265,560 shares. The stock had previously closed at $11.23.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Royal Bank Of Canada raised their target price on shares of Design Therapeutics from $13.00 to $14.00 and gave the company an "outperform" rating in a research note on Tuesday, March 10th. Jefferies Financial Group started coverage on shares of Design Therapeutics in a research note on Monday, March 16th. They issued a "buy" rating and a $15.00 price target on the stock. Oppenheimer initiated coverage on Design Therapeutics in a report on Wednesday, January 7th. They issued an "outperform" rating and a $18.00 price objective for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Design Therapeutics in a research report on Wednesday, January 21st. Finally, Wall Street Zen raised shares of Design Therapeutics from a "sell" rating to a "hold" rating in a report on Saturday, February 14th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $15.20.

Design Therapeutics Stock Performance

The company has a market cap of $750.15 million, a price-to-earnings ratio of -9.98 and a beta of 1.57. The stock's fifty day moving average is $10.38 and its two-hundred day moving average is $8.86.

Design Therapeutics (NASDAQ:DSGN - Get Free Report) last released its earnings results on Monday, March 9th. The company reported ($0.27) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.38) by $0.11. On average, equities research analysts expect that Design Therapeutics, Inc. will post -0.91 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Woodline Partners LP purchased a new stake in shares of Design Therapeutics during the first quarter worth $2,492,000. Jane Street Group LLC bought a new stake in shares of Design Therapeutics during the 1st quarter valued at $70,000. Strs Ohio purchased a new stake in Design Therapeutics during the 1st quarter worth about $87,000. Geode Capital Management LLC lifted its holdings in Design Therapeutics by 2.4% during the 2nd quarter. Geode Capital Management LLC now owns 794,008 shares of the company's stock worth $2,676,000 after purchasing an additional 18,511 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in Design Therapeutics by 26.8% in the 2nd quarter. Invesco Ltd. now owns 14,364 shares of the company's stock worth $48,000 after purchasing an additional 3,033 shares during the period. Hedge funds and other institutional investors 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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