Stoke Therapeutics (NASDAQ:STOK) Shares Gap Up After Strong Earnings

Key Points

• Stoke Therapeutics shares surged from $13.53 to $14.89 after reporting quarterly earnings of ($0.40) EPS, exceeding the consensus estimate by $0.17.
• Analysts have set new price targets for Stoke Therapeutics, with a consensus average target of $25.80 and several ratings upgraded to “buy” or “strong buy.”
• Institutional investors have significantly increased their stakes, with some firms boosting their holdings by over 1,800% during the last quarter.

Shares of Stoke Therapeutics, Inc. (NASDAQ:STOK - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.53, but opened at $14.89. Stoke Therapeutics shares last traded at $15.14, with a volume of 236,029 shares trading hands.

The company reported ($0.40) EPS for the quarter, beating analysts' consensus estimates of ($0.57) by $0.17. The company had revenue of $13.82 million during the quarter, compared to the consensus estimate of $31.51 million. Stoke Therapeutics had a net margin of 26.33% and a return on equity of 19.08%.

Analysts Set New Price Targets

Several analysts have recently weighed in on STOK shares. Jefferies Financial Group started coverage on shares of Stoke Therapeutics in a report on Friday, July 18th. They issued a "buy" rating and a $30.00 target price on the stock. Needham & Company LLC reaffirmed a "buy" rating and issued a $22.00 target price on shares of Stoke Therapeutics in a report on Tuesday, July 1st. Cantor Fitzgerald raised shares of Stoke Therapeutics to a "strong-buy" rating in a report on Wednesday, May 14th. Finally, HC Wainwright decreased their price objective on shares of Stoke Therapeutics from $47.00 to $35.00 and set a "buy" rating on the stock in a report on Wednesday, May 14th. Five equities research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat, Stoke Therapeutics currently has an average rating of "Buy" and a consensus price target of $25.80.

Insider Activity at Stoke Therapeutics

In other news, insider Barry Ticho sold 6,471 shares of the stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $10.03, for a total value of $64,904.13. Following the completion of the sale, the insider directly owned 25,782 shares of the company's stock, valued at $258,593.46. This represents a 20.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 12,720 shares of company stock valued at $140,095 in the last ninety days. Company insiders own 9.50% of the company's stock.

Hedge Funds Weigh In On Stoke Therapeutics

A number of institutional investors have recently modified their holdings of the company. GAMMA Investing LLC boosted its stake in Stoke Therapeutics by 1,842.0% during the first quarter. GAMMA Investing LLC now owns 5,360 shares of the company's stock worth $36,000 after buying an additional 5,084 shares in the last quarter. AlphaQuest LLC bought a new position in shares of Stoke Therapeutics in the first quarter valued at about $72,000. US Bancorp DE raised its holdings in shares of Stoke Therapeutics by 9,743.9% in the first quarter. US Bancorp DE now owns 11,222 shares of the company's stock valued at $75,000 after buying an additional 11,108 shares during the last quarter. Fox Run Management L.L.C. bought a new stake in Stoke Therapeutics during the 1st quarter worth about $92,000. Finally, Russell Investments Group Ltd. acquired a new position in shares of Stoke Therapeutics during the 1st quarter worth about $107,000.

Stoke Therapeutics Stock Performance

The company has a 50-day moving average price of $12.16 and a 200-day moving average price of $10.01. The company has a market capitalization of $823.43 million, a price-to-earnings ratio of 19.16 and a beta of 1.15.

About Stoke Therapeutics

Stoke Therapeutics, Inc, an early-stage biopharmaceutical company, develops medicines to treat the underlying causes of severe genetic diseases in the United States. The company utilizes its proprietary targeted augmentation of nuclear gene output to develop antisense oligonucleotides to selectively restore protein levels.

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