Design Therapeutics (NASDAQ:DSGN) Stock Falls 6.2% - Here's What Happened

Key Points

• Design Therapeutics shares fell 6.2% to about $10.24, with trading volume down 91% from the average session.
• Despite the decline, analysts maintain a generally positive outlook: the stock has a consensus “Moderate Buy” rating and a $17.86 price target, compared with its recent trading price.
• Institutional investors hold 56.64% of the company, with BlackRock and several life-sciences funds establishing significant positions. Design Therapeutics is developing GeneTAC medicines for genetic diseases caused by nucleotide repeat expansions.

Design Therapeutics, Inc. (NASDAQ:DSGN - Get Free Report) shares were down 6.2% on Tuesday. The company traded as low as $10.47 and last traded at $10.2360. Approximately 52,014 shares were traded during trading, a decline of 91% from the average session volume of 595,226 shares. The stock had previously closed at $10.91.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on DSGN. Wells Fargo & Company assumed coverage on shares of Design Therapeutics in a research note on Friday, October 2nd. They issued an "overweight" rating and a $26.00 price target for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Design Therapeutics in a research note on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $17.86.

Design Therapeutics Price Performance

The company has a market capitalization of $625.80 million, a price-to-earnings ratio of -8.47 and a beta of 1.68. The stock has a 50-day moving average price of $13.80 and a 200-day moving average price of $12.99.

Design Therapeutics (NASDAQ:DSGN - Get Free Report) last posted its earnings results on Monday, August 3rd. The company reported ($0.32) earnings per share for the quarter, topping analysts' consensus estimates of ($0.34) by $0.02. Equities analysts forecast that Design Therapeutics, Inc. will post -1.41 earnings per share for the current year.

Hedge Funds Weigh In On Design Therapeutics

Several large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in shares of Design Therapeutics during the 2nd quarter worth about $38,491,000. Trails Edge Capital Partners LP acquired a new position in Design Therapeutics in the 2nd quarter valued at about $28,958,550. Frazier Life Sciences Management L.P. acquired a new position in Design Therapeutics in the 2nd quarter valued at about $26,189,000. Almitas Capital LLC acquired a new position in Design Therapeutics in the 2nd quarter valued at about $14,859,000. Finally, Baker BROS. Advisors LP raised its holdings in 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 acquiring an additional 520,217 shares during the period. 56.64% of the stock is owned by institutional investors.

About Design Therapeutics

Design Therapeutics, Inc NASDAQ: DSGN is a clinical-stage biotechnology company focused on developing small-molecule medicines for genetic diseases caused by nucleotide repeat expansions. The company's approach is designed to address the underlying genetic mechanisms of these disorders by restoring the expression of genes that have been silenced or disrupted.

Design Therapeutics' GeneTAC, or gene-targeted activation compound, platform is intended to selectively reactivate disease-associated genes without directly modifying DNA.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.