Stoke Therapeutics (NASDAQ:STOK) Earns Buy Rating from Guggenheim

Key Points

• Guggenheim reiterated its Buy rating on Stoke Therapeutics and set a $60 price target, implying roughly 99% upside from the referenced $30.09 share price. Overall, analysts maintain a “Moderate Buy” consensus with a $43 average target.
• Stoke’s latest quarter showed revenue of $9.32 million, well above the $4.89 million estimate, but the company reported a $0.93-per-share loss, missing expectations and highlighting continued operating losses.
• Investor focus remains on the development of zorevunersen, the company’s lead investigational therapy for Dravet syndrome, while recent insider sales and mixed analyst actions add caution despite generally favorable sentiment.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at Guggenheim in a note issued to investors on Tuesday,Benzinga reports. They currently have a $60.00 price objective on the stock. Guggenheim's price objective suggests a potential upside of 99.40% from the stock's current price.

A number of other research firms have also recently issued reports on STOK. Weiss Ratings cut Stoke Therapeutics from a "hold (c)" rating to a "sell (d)" rating in a report on Monday, May 11th. Wedbush upped their price objective on Stoke Therapeutics from $38.00 to $40.00 and gave the stock an "outperform" rating in a research report on Tuesday. Chardan Capital reiterated a "buy" rating and set a $35.00 price objective on shares of Stoke Therapeutics in a report on Tuesday. BTIG Research reissued a "buy" rating and issued a $39.00 target price on shares of Stoke Therapeutics in a research report on Monday, May 11th. Finally, Canaccord Genuity Group reduced their price target on Stoke Therapeutics from $60.00 to $58.00 and set a "buy" rating for the company in a research report on Tuesday. Nine equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Stoke Therapeutics has a consensus rating of "Moderate Buy" and a consensus price target of $43.00.

Stoke Therapeutics Price Performance

Shares of Stoke Therapeutics stock traded up $0.53 on Tuesday, hitting $30.09. The company had a trading volume of 78,162 shares, compared to its average volume of 745,661. The firm has a market capitalization of $1.87 billion, a P/E ratio of -10.77 and a beta of 1.20. Stoke Therapeutics has a twelve month low of $12.72 and a twelve month high of $40.22. The stock has a 50-day moving average of $30.39 and a 200-day moving average of $32.00.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The company reported ($0.93) EPS for the quarter, missing analysts' consensus estimates of ($0.80) by ($0.13). The company had revenue of $9.32 million for the quarter, compared to analyst estimates of $4.89 million. Stoke Therapeutics had a negative return on equity of 48.84% and a negative net margin of 529.20%. Equities analysts predict that Stoke Therapeutics will post -3.22 EPS for the current year.

Insider Buying and Selling at Stoke Therapeutics

In other Stoke Therapeutics news, insider Barry Ticho sold 1,795 shares of the business's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $30.58, for a total transaction of $54,891.10. Following the sale, the insider directly owned 34,826 shares of the company's stock, valued at $1,064,979.08. The trade was a 4.90% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Jonathan Allan sold 1,457 shares of the firm's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $29.95, for a total value of $43,637.15. Following the completion of the transaction, the general counsel owned 18,086 shares of the company's stock, valued at $541,675.70. The trade was a 7.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. AQR Capital Management LLC increased its position in Stoke Therapeutics by 1.2% during the fourth quarter. AQR Capital Management LLC now owns 29,467 shares of the company's stock worth $935,000 after buying an additional 354 shares during the last quarter. Versant Capital Management Inc raised its stake in Stoke Therapeutics by 22.6% in the second quarter. Versant Capital Management Inc now owns 1,951 shares of the company's stock valued at $64,000 after buying an additional 359 shares during the period. Strs Ohio lifted its position in shares of Stoke Therapeutics by 9.4% in the fourth quarter. Strs Ohio now owns 7,000 shares of the company's stock valued at $222,000 after buying an additional 600 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of Stoke Therapeutics by 31.1% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,776 shares of the company's stock valued at $88,000 after buying an additional 658 shares during the last quarter. Finally, Generali Investments Management Co LLC boosted its stake in shares of Stoke Therapeutics by 41.0% during the 4th quarter. Generali Investments Management Co LLC now owns 2,471 shares of the company's stock worth $78,000 after acquiring an additional 718 shares during the period.

Key Stories Impacting Stoke Therapeutics

Here are the key news stories impacting Stoke Therapeutics this week:

• Positive Sentiment: Chardan Capital reaffirmed its “Buy” rating and assigned a $35 price target, implying approximately 18% upside from the referenced $29.56 level. This provides a positive analyst catalyst for STOK. Benzinga analyst rating report
• Positive Sentiment: Second-quarter revenue was about $9.3 million, well above the $4.89 million consensus estimate. The result suggests stronger-than-anticipated revenue generation and may help offset concerns about the company’s ongoing cash burn. Zacks second-quarter earnings report
• Neutral Sentiment: Management provided business updates on zorevunersen, Stoke’s lead investigational RNA medicine and potential disease-modifying treatment for Dravet syndrome, including progress in its global development program. Investors are likely focused on clinical execution and future regulatory milestones. Stoke Therapeutics second-quarter business update
• Neutral Sentiment: Brokerages collectively rate STOK “Moderate Buy,” indicating generally favorable but not uniformly bullish expectations. Brokerage recommendation report
• Negative Sentiment: Stoke reported a quarterly loss of $0.93 per share, missing estimates of roughly $0.80–$0.82 and widening from a $0.40 loss a year earlier. Its negative net margin and return on equity underscore continued substantial operating losses. Stoke Therapeutics earnings report

About Stoke Therapeutics

Stoke Therapeutics, headquartered in Bedford, Massachusetts, is a clinical-stage biopharmaceutical company focused on developing genetic medicines to upregulate protein production for the treatment of rare neuromuscular and neurological disorders. Founded in 2014, the company applies its proprietary Targeted Augmentation of Nuclear Gene Output (TANGO™) platform to design antisense oligonucleotides that selectively modulate RNA splicing and enhance expression of functional proteins.

The company's lead program, STK-001, is an antisense oligonucleotide therapy designed to increase production of the sodium channel protein SCN1A and is currently in clinical development for Dravet syndrome, a severe childhood-onset epilepsy.

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