Stoke Therapeutics (NASDAQ:STOK) Shares Down 9% - What's Next?

Key Points

• Stoke Therapeutics shares fell 9% to about $26.59, with trading volume below average. The stock’s price remains below its 50-day and 200-day moving averages.
• Analysts remain broadly bullish, with ten Buy ratings and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $44.25—well above the current price.
• 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 sold $1.03 million of shares over the past three months, while several major institutions established or increased positions.

Stoke Therapeutics, Inc. (NASDAQ:STOK - Get Free Report) shares fell 9% on Wednesday . The company traded as low as $26.56 and last traded at $26.5860. Approximately 613,871 shares changed hands during trading, a decline of 19% from the average daily volume of 762,047 shares. The stock had previously closed at $29.20.

Analyst Ratings Changes

STOK has been the subject of a number of recent analyst reports. Guggenheim reiterated a "buy" rating and issued a $60.00 price target on shares of Stoke Therapeutics in a research note on Tuesday, August 4th. Wedbush raised their target price on shares of Stoke Therapeutics from $38.00 to $40.00 and gave the company an "outperform" rating in a research note on Tuesday, August 4th. JPMorgan Chase & Co. began coverage on Stoke Therapeutics in a research report on Friday, August 21st. They set an "overweight" rating and a $40.00 price target on the stock. Canaccord Genuity Group cut their target price 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. Finally, Chardan Capital restated a "buy" rating and set a $35.00 price objective on shares of Stoke Therapeutics in a report on Tuesday, August 4th. Ten analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $44.25.

Stoke Therapeutics Trading Down 9.6%

The stock's 50-day moving average price is $30.46 and its 200-day moving average price is $31.74. The stock has a market cap of $1.70 billion, a price-to-earnings ratio of -7.90 and a beta of 1.23.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) last released its 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 company had revenue of $9.32 million for the quarter, compared to analyst estimates of $4.89 million. As a group, analysts predict that Stoke Therapeutics, Inc. will post -3.52 earnings per share for the current year.

Insider Activity at Stoke Therapeutics

In related news, insider Barry Ticho sold 5,545 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $30.67, for a total transaction of $170,065.15. Following the transaction, the insider directly owned 20,110 shares of the company's stock, valued at approximately $616,773.70. This represents a 21.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Edward Kaye sold 12,567 shares of the 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 completion of the transaction, the director owned 124,557 shares in the company, valued at approximately $3,989,560.71. The trade was 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. Insiders sold 32,916 shares of company stock valued at $1,025,302 in the last three months. Corporate insiders own 9.60% of the company's stock.

Institutional Trading of Stoke Therapeutics

Several hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of Stoke Therapeutics in the 2nd quarter worth $192,307,000. Jupiter Topco LLC bought a new position in shares of Stoke Therapeutics during the second quarter valued at about $59,358,000. Troluce Capital Advisors LLC purchased a new position in Stoke Therapeutics during the first quarter worth about $21,255,000. BVF Inc. IL boosted its holdings in Stoke Therapeutics by 36.7% during the fourth quarter. BVF Inc. IL now owns 2,265,674 shares of the company's stock worth $71,912,000 after purchasing an additional 608,578 shares during the last quarter. Finally, Wellington Management Group LLP grew its position 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 worth $115,152,000 after purchasing an additional 423,601 shares in the last quarter.

About Stoke Therapeutics

Stoke Therapeutics, Inc is a biotechnology company focused on developing RNA-based medicines for severe genetic diseases. The company's approach is designed to increase the production of functional proteins by selectively targeting RNA splicing, a process that helps determine how genetic information is translated into proteins.

Stoke's technology is based on its TANGO platform, which uses antisense oligonucleotides to promote the inclusion of productive genetic sequences in messenger RNA.

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