Stoke Therapeutics (NASDAQ:STOK) Stock Price Down 7.9% - What's Next?

Key Points

• Stoke Therapeutics shares fell 7.9% to about $30.42, with trading volume 67% below the average session volume. The company recently reported a quarterly EPS loss of $0.93, missing the $0.80 consensus estimate, despite revenue of $9.32 million exceeding expectations.
• Wall Street remains broadly optimistic, with nine analysts rating the stock a Buy and the average price target at $43.00, implying substantial upside from current levels. Ratings cited include target prices ranging from $35 to $60.
• Insiders sold 30,623 shares worth approximately $953,765 over the past 90 days, including recent sales by a director and the general counsel to cover tax withholding obligations tied to vested equity awards. Stoke is developing STK-001, a genetic medicine for Dravet syndrome, using its TANGO platform.

Shares of Stoke Therapeutics, Inc. (NASDAQ:STOK - Get Free Report) were down 7.9% during trading on Thursday . The stock traded as low as $30.32 and last traded at $30.42. Approximately 249,517 shares traded hands during trading, a decline of 67% from the average session volume of 751,333 shares. The stock had previously closed at $33.03.

Wall Street Analysts Forecast Growth

STOK has been the topic of several research reports. Canaccord Genuity Group dropped their price objective on shares of Stoke Therapeutics from $60.00 to $58.00 and set a "buy" rating on the stock in a research note on Tuesday, August 4th. Chardan Capital reissued a "buy" rating and set a $35.00 target price on shares of Stoke Therapeutics in a research note on Tuesday, August 4th. Guggenheim restated a "buy" rating and set a $60.00 price target on shares of Stoke Therapeutics in a report on Tuesday, August 4th. BTIG Research reaffirmed a "buy" rating and issued a $39.00 price target on shares of Stoke Therapeutics in a research note on Monday, May 11th. Finally, The Goldman Sachs Group assumed coverage on Stoke Therapeutics in a research report on Monday, July 13th. They set a "buy" rating and a $44.00 price objective for the company. Nine investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $43.00.

Stoke Therapeutics Stock Down 7.9%

The stock has a market cap of $1.96 billion, a P/E ratio of -9.11 and a beta of 1.20. The firm's 50-day moving average is $30.90 and its two-hundred day moving average is $32.23.

Stoke Therapeutics (NASDAQ:STOK - Get Free Report) last posted its 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 return on equity of 59.36% and a negative net margin of 753.60%.The business had revenue of $9.32 million during the quarter, compared to the consensus estimate of $4.89 million. Analysts anticipate that Stoke Therapeutics, Inc. will post -3.5 earnings per share for the current fiscal year.

Insider Activity at Stoke Therapeutics

In related news, Director Edward M. Md Kaye sold 12,567 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $32.03, for a total value of $402,521.01. Following the completion of the sale, the director directly owned 124,557 shares in the company, valued at approximately $3,989,560.71. This represents a 9.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through 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 the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $32.03, for a total transaction of $91,637.83. Following the completion of the sale, the general counsel owned 21,225 shares of the company's stock, valued at $679,836.75. This represents a 11.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 30,623 shares of company stock valued at $953,765. Insiders own 9.60% of the company's stock.

Institutional Trading of Stoke Therapeutics

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