Stoke Therapeutics (NASDAQ:STOK) Earns Overweight Rating from Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan initiated coverage of Stoke Therapeutics with an “overweight” rating and a $40 price target, implying approximately 25% upside from the prior close.
• Analyst sentiment is broadly positive: 10 analysts rate the stock a Buy and one rates it a Sell, producing a MarketBeat consensus of “Moderate Buy” with a $44.25 price target.
• Stoke reported a quarterly loss of $0.93 per share, missing expectations of $0.80, although revenue of $9.32 million exceeded the $4.89 million forecast. The company is developing genetic medicines, including lead candidate STK-001 for Dravet syndrome.

Stock analysts at JPMorgan Chase & Co. started coverage on shares of Stoke Therapeutics (NASDAQ:STOK - Get Free Report) in a research report issued on Friday. The firm set an "overweight" rating and a $40.00 price target on the stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 25.23% from the company's previous close.

A number of other analysts have also recently commented on STOK. Chardan Capital restated a "buy" rating and issued a $35.00 price objective on shares of Stoke Therapeutics in a research report on Tuesday, August 4th. The Goldman Sachs Group started coverage on shares of Stoke Therapeutics in a research note on Monday, July 13th. They issued a "buy" rating and a $44.00 price objective on the stock. Guggenheim reiterated a "buy" rating and issued a $60.00 target price on shares of Stoke Therapeutics in a research note on Tuesday, August 4th. BTIG Research restated a "buy" rating and issued a $39.00 target price on shares of Stoke Therapeutics in a research note on Monday, May 11th. Finally, Wedbush raised their target price on Stoke Therapeutics from $38.00 to $40.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 4th. Ten investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, Stoke Therapeutics has a consensus rating of "Moderate Buy" and a consensus price target of $44.25.

Stoke Therapeutics Stock Up 1.7%

Shares of NASDAQ:STOK traded up $0.54 during midday trading on Friday, reaching $31.94. The company's stock had a trading volume of 35,385 shares, compared to its average volume of 754,671. The firm has a market cap of $2.06 billion, a price-to-earnings ratio of -9.56 and a beta of 1.20. Stoke Therapeutics has a 1 year low of $18.00 and a 1 year high of $40.22. The business has a 50 day moving average price of $30.94 and a 200 day moving average price of $32.23.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The company reported ($0.93) EPS for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $4.89 million. Sell-side analysts anticipate that Stoke Therapeutics will post -3.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Stoke Therapeutics news, Director Edward M. Md Kaye sold 12,567 shares of the stock in a transaction 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 sale, the director directly owned 124,557 shares of the company's stock, valued at $3,989,560.71. This trade represents a 9.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Jonathan Allan sold 2,861 shares of Stoke Therapeutics 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 transaction, the general counsel owned 21,225 shares in the company, valued at $679,836.75. This represents a 11.88% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 30,623 shares of company stock valued at $953,765 over the last quarter. Company insiders own 9.60% of the company's stock.

Institutional Investors Weigh In On Stoke Therapeutics

Large investors have recently bought and sold shares of the company. Hussman Strategic Advisors Inc. purchased a new position in Stoke Therapeutics in the fourth quarter valued at about $2,000,000. Dimensional Fund Advisors LP increased its position in shares of Stoke Therapeutics by 19.7% in the first quarter. Dimensional Fund Advisors LP now owns 989,936 shares of the company's stock valued at $32,229,000 after acquiring an additional 162,797 shares during the period. Janus Henderson Group PLC increased its position in shares of Stoke Therapeutics by 11.2% during the first quarter. Janus Henderson Group PLC now owns 1,612,781 shares of the company's stock valued at $52,456,000 after buying an additional 161,848 shares during the period. Candriam S.C.A. lifted its position in Stoke Therapeutics by 12.4% during the 1st quarter. Candriam S.C.A. now owns 502,020 shares of the company's stock valued at $16,346,000 after acquiring an additional 55,330 shares during the period. Finally, Granahan Investment Management LLC raised its position in shares of Stoke Therapeutics by 75.3% in the 1st quarter. Granahan Investment Management LLC now owns 335,586 shares of the company's stock worth $10,927,000 after purchasing an additional 144,189 shares during the last quarter.

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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