Stoke Therapeutics (NASDAQ:STOK) Shares Break Below 50-Day Moving Average - Should You Sell?

Key Points

• Stoke Therapeutics shares slipped below their 50-day moving average, trading as low as $26.14 and last at $26.20, below the $26.52 average.
• Analyst sentiment remains broadly positive: 10 analysts rate STOK a Buy and one a Sell, for a consensus “Moderate Buy” rating and an average price target of $44.17.
• In its latest quarter, the company missed earnings-per-share expectations, reporting a loss of $1.08 versus the expected $0.93 loss, but revenue of $11.26 million exceeded the $8.21 million forecast.

Shares of Stoke Therapeutics, Inc. (NASDAQ:STOK - Get Free Report) passed below its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $26.52 and traded as low as $26.14. Stoke Therapeutics shares last traded at $26.20, with a volume of 501,151 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on STOK. Chardan Capital reaffirmed a "buy" rating and issued a $35.00 target price on shares of Stoke Therapeutics in a report on Tuesday, August 4th. Canaccord Genuity Group lowered their price target on shares of Stoke Therapeutics from $60.00 to $58.00 and set a "buy" rating for the company in a report on Tuesday, August 4th. Weiss Ratings downgraded shares of Stoke Therapeutics from a "sell (d)" rating to a "sell (d-)" rating in a research report on Wednesday, November 4th. Guggenheim restated a "buy" rating and issued a $60.00 price objective on shares of Stoke Therapeutics in a report on Tuesday, August 4th. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $43.00 price objective on shares of Stoke Therapeutics in a report on Friday, October 30th. Ten analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $44.17.

Stoke Therapeutics Stock Performance

The stock's 50-day moving average is $26.52 and its 200 day moving average is $30.77. The stock has a market capitalization of $1.71 billion, a PE ratio of -6.95 and a beta of 1.36.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported ($1.08) earnings per share for the quarter, missing analysts' consensus estimates of ($0.93) by ($0.15). Stoke Therapeutics had a negative net margin of 862.07% and a negative return on equity of 67.30%. The company had revenue of $11.26 million during the quarter, compared to analysts' expectations of $8.21 million. Analysts expect that Stoke Therapeutics, Inc. will post -3.91 earnings per share for the current year.

Insider Transactions at Stoke Therapeutics

In related news, General Counsel Jonathan Allan sold 2,861 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $32.03, for a total value of $91,637.83. Following the completion of the sale, the general counsel directly owned 21,225 shares of the company's stock, valued at $679,836.75. This represents a 11.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Edward M. Md Kaye sold 12,567 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $32.03, for a total value of $402,521.01. Following the transaction, the director owned 124,557 shares in the company, valued at $3,989,560.71. This represents a 9.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 27,418 shares of company stock worth $860,914. Corporate insiders own 9.60% of the company's stock.

Institutional Investors Weigh In On Stoke Therapeutics

Several large investors have recently modified their holdings of STOK. Quantbot Technologies LP purchased a new position in shares of Stoke Therapeutics during the second quarter worth approximately $34,000. KBC Group NV purchased a new stake in Stoke Therapeutics in the 1st quarter valued at $36,000. Sterling Capital Management LLC raised its position in Stoke Therapeutics by 849.7% in the 3rd quarter. Sterling Capital Management LLC now owns 1,833 shares of the company's stock valued at $48,000 after purchasing an additional 1,640 shares during the last quarter. Western Wealth Management LLC purchased a new stake in Stoke Therapeutics in the 1st quarter valued at $55,000. Finally, EverSource Wealth Advisors LLC raised its position in Stoke Therapeutics by 195.3% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,837 shares of the company's stock valued at $60,000 after purchasing an additional 1,215 shares during the last quarter.

About Stoke Therapeutics

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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