Stoke Therapeutics (NASDAQ:STOK) Shares Down 5.9% - What's Next?

Key Points

• Stoke Therapeutics shares fell 5.9% to about $23.83, with trading volume down 91% from its average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with 10 Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $44.25.
• The company missed quarterly EPS expectations, reporting a loss of $0.93 per share versus the expected $0.80 loss, despite revenue of $9.32 million exceeding estimates. Insiders have sold $1.07 million worth of shares over the past 90 days.

Stoke Therapeutics, Inc. (NASDAQ:STOK - Get Free Report) traded down 5.9% during mid-day trading on Tuesday. The company traded as low as $23.96 and last traded at $23.8290. Approximately 70,029 shares changed hands during trading, a decline of 91% from the average daily volume of 782,017 shares. The stock had previously closed at $25.32.

Analyst Ratings Changes

A number of research analysts have recently commented on STOK shares. Guggenheim restated a "buy" rating and set a $60.00 price target on shares of Stoke Therapeutics in a research report on Tuesday, August 4th. JPMorgan Chase & Co. started coverage on shares of Stoke Therapeutics in a research note on Friday, August 21st. They set an "overweight" rating and a $40.00 target price on the stock. The Goldman Sachs Group reiterated a "buy" rating on shares of Stoke Therapeutics in a report on Thursday, September 10th. Chardan Capital reissued a "buy" rating and issued a $35.00 target price on shares of Stoke Therapeutics in a report on Tuesday, August 4th. Finally, Canaccord Genuity Group reduced their price target on shares of Stoke Therapeutics from $60.00 to $58.00 and set a "buy" rating for the company in a research report on Tuesday, August 4th. Ten equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $44.25.

Stoke Therapeutics Trading Down 5.8%

The business has a 50-day moving average price of $29.83 and a 200 day moving average price of $31.10. The stock has a market capitalization of $1.54 billion, a P/E ratio of -7.13 and a beta of 1.26.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The company reported ($0.93) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.80) by ($0.13). Stoke Therapeutics had a negative net margin of 753.60% and a negative return on equity of 59.36%. The business had revenue of $9.32 million for the quarter, compared to analysts' expectations of $4.89 million. On average, sell-side analysts predict that Stoke Therapeutics, Inc. will post -3.52 earnings per share for the current fiscal year.

Insider Transactions at Stoke Therapeutics

In other news, insider Barry Ticho sold 7,176 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $29.04, for a total transaction of $208,391.04. Following the transaction, the insider owned 20,422 shares of the company's stock, valued at approximately $593,054.88. The trade was a 26.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Jonathan Allan sold 2,861 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $32.03, for a total value of $91,637.83. Following the sale, the general counsel owned 21,225 shares in the company, valued at $679,836.75. The trade was a 11.88% decrease in their position. 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. In the last 90 days, insiders sold 34,594 shares of company stock worth $1,069,305. 9.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Stoke Therapeutics

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in Stoke Therapeutics during the 2nd quarter valued at about $192,307,000. Redmile Group LLC grew its holdings in Stoke Therapeutics by 3.2% in the first quarter. Redmile Group LLC now owns 4,164,120 shares of the company's stock valued at $135,584,000 after purchasing an additional 130,050 shares during the period. Wellington Management Group LLP grew its stake in Stoke Therapeutics by 13.7% in the 2nd quarter. Wellington Management Group LLP now owns 3,519,301 shares of the company's stock valued at $115,152,000 after acquiring an additional 423,601 shares during the period. BVF Inc. IL increased its holdings in Stoke Therapeutics by 36.7% in the 4th quarter. BVF Inc. IL now owns 2,265,674 shares of the company's stock worth $71,912,000 after acquiring an additional 608,578 shares in the last quarter. Finally, Jupiter Topco LLC purchased a new stake in Stoke Therapeutics in the 2nd quarter worth $59,358,000.

About Stoke Therapeutics

Stoke Therapeutics, Inc is a biotechnology company developing genetic medicines for severe diseases caused by inadequate protein expression. The company's approach, known as TANGO (Targeted Augmentation of Nuclear Gene Output), uses antisense oligonucleotides to selectively modulate pre-messenger RNA splicing and increase production of functional proteins from disease-associated genes.

Stoke's lead program is zorevunersen (STK-001), an investigational antisense oligonucleotide designed to increase functional NaV1.1 protein expression in people with Dravet syndrome, a severe genetic epilepsy caused primarily by mutations in the SCN1A gene.

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