Stock of the Day

July 5, 2019

Stoke Therapeutics (STOK)

$31.20
-$0.42 (-1.3%)
Market Cap: $2.04B

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. Its lead clinical candidate is STK-002, which is in preclinical stage for the treatment of autosomal dominant optic atrophy. The company also develops STK-001, which is in phase I/II clinical trial to treat Dravet syndrome; and programs focused on multiple targets, including haploinsufficiency diseases of the central nervous system and eye. The company has a license and collaboration agreement with Acadia Pharmaceuticals Inc. for the discovery, development, and commercialization of novel RNA-based medicines for the treatment of severe and rare genetic neurodevelopmental diseases of the central nervous system. The company was formerly known as ASOthera Pharmaceuticals, Inc. and changed its name to Stoke Therapeutics, Inc. in May 2016. Stoke Therapeutics, Inc. was incorporated in 2014 and is headquartered in Bedford, Massachusetts.

Today's Trend

Stoke Therapeutics, Inc. (NASDAQ: STOK) has been trading higher as supportive analyst actions and the company’s development outlook appear to outweigh concerns about continued losses and downward earnings revisions.

  • Wedbush raised its price target on STOK to $40 while maintaining an “outperform” rating, signaling confidence in the company’s pipeline and potential upside. Wedbush raises Stoke Therapeutics price target
  • Chardan Capital reiterated a “buy” rating on Stoke Therapeutics, adding to the favorable analyst sentiment surrounding the biotechnology company. Chardan Capital buy rating
  • Canaccord Genuity remained constructive on the shares but issued a more cautious price outlook, reflecting a mixed analyst view despite continued confidence in Stoke’s long-term prospects. Canaccord Genuity forecast for Stoke Therapeutics
  • HC Wainwright cut its projected EPS for fiscal 2026 to a loss of $3.35 from $3.09, fiscal 2027 to a loss of $2.55 from $2.05, and fiscal 2028 to a loss of $1.78 from $0.67. It also reduced quarterly estimates to losses of $0.81 per share, indicating expectations for higher or more prolonged expenses. HC Wainwright earnings forecast for Stoke Therapeutics
  • HC Wainwright’s broader outlook remains bearish for later years, with its FY2029 EPS forecast reportedly reduced to $1.55 from $1.63. The revisions highlight execution and commercialization risks for Stoke’s pipeline. HC Wainwright FY2029 forecast
  • Director Barry Ticho sold 7,176 shares worth approximately $208,000, reducing his direct holdings by 26%. Because the sale occurred under a pre-arranged Rule 10b5-1 plan, its negative signaling value is limited, but it may still weigh modestly on sentiment. SEC insider sale filing

Overall, investor focus is split between bullish analyst price targets and the potential value of Stoke’s rare-disease medicines, versus revised forecasts showing the company may remain loss-making longer than previously expected.