Stoke Therapeutics (NASDAQ:STOK) Issues Quarterly Earnings Results, Misses Estimates By $0.13 EPS

Key Points

• Stoke Therapeutics reported a quarterly loss of $0.93 per share, missing analyst expectations by $0.13, while revenue of $9.32 million exceeded estimates of $4.89 million. The company remained unprofitable, with a negative net margin of 529.20%.
• Shares rose $0.70 to $29.56 following the results, but remain below their 50-day and 200-day moving averages. Analysts maintain a “Moderate Buy” consensus, with an average price target of $43.00.
• Stoke is developing genetic medicines through its TANGO platform, led by STK-001, an experimental therapy for Dravet syndrome. Two insiders recently sold shares under pre-arranged trading plans, while institutional investors including Janus Henderson and State Street increased their holdings.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) announced its earnings results on Monday. The company reported ($0.93) EPS for the quarter, missing the consensus estimate of ($0.80) by ($0.13), FiscalAI reports. The business 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%.

Stoke Therapeutics Price Performance

NASDAQ STOK traded up $0.70 during trading on Monday, reaching $29.56. 3,138,626 shares of the company's stock were exchanged, compared to its average volume of 750,180. The business has a 50 day moving average price of $30.38 and a 200-day moving average price of $32.01. The stock has a market capitalization of $1.84 billion, a P/E ratio of -10.52 and a beta of 1.17. Stoke Therapeutics has a fifty-two week low of $12.71 and a fifty-two week high of $40.22.

Wall Street Analysts Forecast Growth

STOK has been the topic of several analyst reports. Weiss Ratings cut shares of Stoke Therapeutics from a "hold (c)" rating to a "sell (d)" rating in a research report on Monday, May 11th. The Goldman Sachs Group started coverage on Stoke Therapeutics in a research note on Monday, July 13th. They issued a "buy" rating and a $44.00 price target for the company. Finally, BTIG Research reiterated a "buy" rating and set a $39.00 price objective on shares of Stoke Therapeutics in a research note on Monday, May 11th. Nine investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Stoke Therapeutics has an average rating of "Moderate Buy" and an average price target of $43.00.

Insider Activity at Stoke Therapeutics

In related news, General Counsel Jonathan Allan sold 1,457 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $29.95, for a total transaction of $43,637.15. Following the transaction, the general counsel directly owned 18,086 shares of the company's stock, valued at approximately $541,675.70. The trade was a 7.46% decrease in their position. The transaction was disclosed in a legal 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, insider Barry Ticho sold 1,795 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $30.58, for a total value of $54,891.10. Following the completion of the sale, the insider owned 34,826 shares in the company, valued at approximately $1,064,979.08. This trade represents a 4.90% 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. Insiders own 9.60% of the company's stock.

Institutional Trading of Stoke Therapeutics

A number of hedge funds have recently modified their holdings of STOK. Janus Henderson Group PLC boosted its stake in Stoke Therapeutics by 333.8% in the 4th quarter. Janus Henderson Group PLC now owns 1,450,933 shares of the company's stock valued at $46,031,000 after purchasing an additional 1,116,452 shares during the period. State Street Corp increased its position in Stoke Therapeutics by 75.2% during the 4th quarter. State Street Corp now owns 2,498,049 shares of the company's stock worth $79,288,000 after buying an additional 1,072,176 shares during the period. Corient Private Wealth LLC bought a new position in Stoke Therapeutics during the 2nd quarter worth $7,489,000. Wellington Management Group LLP lifted its holdings in shares of Stoke Therapeutics by 438.2% during the third quarter. Wellington Management Group LLP now owns 737,753 shares of the company's stock worth $17,337,000 after buying an additional 600,687 shares in the last quarter. Finally, Polar Capital Holdings Plc lifted its holdings in shares of Stoke Therapeutics by 49.8% during the third quarter. Polar Capital Holdings Plc now owns 1,323,470 shares of the company's stock worth $31,102,000 after buying an additional 439,824 shares in the last quarter.

Stoke Therapeutics Company Profile

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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