Stoke Therapeutics (NASDAQ:STOK) Announces Quarterly Earnings Results

Key Points

• Stoke Therapeutics missed earnings expectations, reporting a quarterly loss of $1.08 per share versus the $0.93 consensus estimate, while revenue of $11.26 million exceeded expectations of $8.21 million.
• The EMPEROR Phase III trial remains on schedule, with topline data still expected in the third quarter of 2027. The FDA also agreed to a multicomponent Vineland-3 assessment for the planned U.S. application.
• Stoke ended the quarter with $358.8 million in cash and marketable securities, which management expects to support operations into early 2028, including preparations for a potential early-2028 zorevunersen launch.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($1.08) earnings per share for the quarter, missing the consensus estimate of ($0.93) by ($0.15), FiscalAI reports. Stoke Therapeutics had a negative net margin of 753.60% and a negative return on equity of 59.36%. The company had revenue of $11.26 million for the quarter, compared to the consensus estimate of $8.21 million.

Here are the key takeaways from Stoke Therapeutics' conference call:

• EMPEROR Phase III remains on track: Approximately 110 of 162 patients have reached the week 28 primary endpoint visit, about 20 have completed the 52-week treatment period, and no patients have discontinued treatment. Stoke continues to expect topline data in Q3 2027.
• The FDA agreed that Stoke may use a multicomponent Vineland-3 assessment covering four cognitive and behavioral subdomains for the planned U.S. NDA. Management believes this approach better reflects Dravet syndrome’s variability and improves statistical power; the company does not currently anticipate an advisory committee meeting.
• Stoke is advancing its potential commercial launch of zorevunersen, estimating approximately 6,000 immediately addressable U.S. pediatric patients and increasing awareness among treatment centers, payers, and neurologists. The company is preparing patient services, market access, and treatment-site infrastructure for a potential launch in early 2028.
• The STK-002 program for autosomal dominant optic atrophy is progressing, with dosing underway in the third OSPREY cohort and a fourth cohort expected to begin in early 2027. Initial safety and efficacy data from higher-dose cohorts are anticipated in the first half of 2027.
• Stoke ended the quarter with $358.8 million in cash, cash equivalents, and marketable securities, while reporting a quarterly net loss of $73.6 million. Including expected Biogen reimbursements and a potential development milestone, management expects its cash position to fund operations into early 2028.

Stoke Therapeutics Stock Performance

Stoke Therapeutics stock traded down $0.06 during mid-day trading on Thursday, reaching $26.35. The company's stock had a trading volume of 1,879,613 shares, compared to its average volume of 821,787. The company has a market capitalization of $1.70 billion, a P/E ratio of -7.89 and a beta of 1.26. Stoke Therapeutics has a 12-month low of $20.32 and a 12-month high of $40.22. The firm's fifty day moving average price is $27.66 and its two-hundred day moving average price is $30.94.

Analyst Ratings Changes

Several research firms have commented on STOK. Canaccord Genuity Group decreased their price objective on shares of Stoke Therapeutics from $60.00 to $58.00 and set a "buy" rating for the company in a research note on Tuesday, August 4th. Wedbush boosted their target price on Stoke Therapeutics from $38.00 to $40.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 4th. Guggenheim reaffirmed a "buy" rating and issued a $60.00 target price on shares of Stoke Therapeutics in a report on Tuesday, August 4th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Stoke Therapeutics in a research report on Thursday, September 10th. Finally, JPMorgan Chase & Co. began coverage on Stoke Therapeutics in a report on Friday, August 21st. They set an "overweight" rating and a $40.00 price target on the stock. Ten analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $44.25.

Insider Buying and Selling at Stoke Therapeutics

In other news, insider Barry Ticho sold 7,176 shares of the company's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $29.04, for a total transaction of $208,391.04. Following the sale, the insider directly owned 20,422 shares in the company, valued at $593,054.88. This represents a 26.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Edward Kaye sold 12,567 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $32.03, for a total transaction of $402,521.01. Following the transaction, the director owned 124,557 shares of the company's stock, valued at $3,989,560.71. This trade represents a 9.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 34,594 shares of company stock valued at $1,069,305 in the last quarter. 9.60% of the stock is currently owned by corporate insiders.

Stoke Therapeutics Company Profile

Stoke Therapeutics, Inc is a clinical-stage biotechnology company focused on developing genetic medicines for severe diseases caused by insufficient protein production. The company uses its proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) platform to design antisense oligonucleotides that can increase the expression of specific genes and potentially address the underlying causes of genetic disorders.

Stoke's leading product candidate is STK-001, an investigational antisense oligonucleotide being developed for the treatment of Dravet syndrome, a severe genetic epilepsy most commonly associated with mutations in the SCN1A gene.

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