Stoke Therapeutics (NASDAQ:STOK) Issues Quarterly Earnings Results, Misses Estimates By $0.15 EPS

Stoke Therapeutics (NASDAQ:STOK) released its earnings results on Thursday. The company reported ($1.08) EPS for the quarter, missing analysts’ consensus estimates of ($0.93) by ($0.15), FiscalAI reports. The firm had revenue of $11.26 million during the quarter, compared to the consensus estimate of $8.21 million. Stoke Therapeutics had a negative net margin of 753.60% and a negative return on equity of 59.36%.

Here are the key takeaways from Stoke Therapeutics’ conference call:

• EMPEROR Phase III remains on track: Approximately 110 of 162 patients have reached the week 28 primary endpoint visit, about 20 have completed the 52-week treatment period, and no patients have discontinued treatment. Stoke continues to expect topline data in Q3 2027.
• The FDA agreed that Stoke may use a multicomponent Vineland-3 assessment covering four cognitive and behavioral subdomains for the planned U.S. NDA. Management believes this approach better reflects Dravet syndrome’s variability and improves statistical power; the company does not currently anticipate an advisory committee meeting.
• Stoke is advancing its potential commercial launch of zorevunersen, estimating approximately 6,000 immediately addressable U.S. pediatric patients and increasing awareness among treatment centers, payers, and neurologists. The company is preparing patient services, market access, and treatment-site infrastructure for a potential launch in early 2028.
• The STK-002 program for autosomal dominant optic atrophy is progressing, with dosing underway in the third OSPREY cohort and a fourth cohort expected to begin in early 2027. Initial safety and efficacy data from higher-dose cohorts are anticipated in the first half of 2027.
• Stoke ended the quarter with $358.8 million in cash, cash equivalents, and marketable securities, while reporting a quarterly net loss of $73.6 million. Including expected Biogen reimbursements and a potential development milestone, management expects its cash position to fund operations into early 2028.

Stoke Therapeutics Price Performance

Stoke Therapeutics stock traded down $0.06 during trading hours on Thursday, reaching $26.35. The stock had a trading volume of 1,879,613 shares, compared to its average volume of 821,787. The company has a fifty day simple moving average of $27.66 and a 200-day simple moving average of $30.94. The stock has a market cap of $1.70 billion, a PE ratio of -7.89 and a beta of 1.26. Stoke Therapeutics has a 52 week low of $20.32 and a 52 week high of $40.22.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on STOK shares. Wedbush upped 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. Guggenheim reaffirmed a “buy” rating and issued a $60.00 price objective on shares of Stoke Therapeutics in a research note on Tuesday, August 4th. Canaccord Genuity Group decreased their target price on shares of Stoke Therapeutics from $60.00 to $58.00 and set a “buy” rating on the stock in a research report on Tuesday, August 4th. JPMorgan Chase & Co. began coverage on shares of Stoke Therapeutics in a research note on Friday, August 21st. They issued an “overweight” rating and a $40.00 price target for the company. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Stoke Therapeutics in a research report on Thursday, September 10th. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $44.25.

Insider Buying and Selling

In related news, General Counsel Jonathan Allan sold 2,861 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $32.03, for a total transaction of $91,637.83. Following the transaction, the general counsel owned 21,225 shares in the company, valued at $679,836.75. The trade was a 11.88% decrease in their position. The sale was disclosed in a document filed 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, insider Barry Ticho sold 1,051 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $26.16, for a total value of $27,494.16. Following the transaction, the insider directly owned 19,059 shares of the company’s stock, valued at $498,583.44. The trade was a 5.23% 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 have sold 34,594 shares of company stock valued at $1,069,305 over the last ninety days. 9.60% of the stock is owned by insiders.

Stoke Therapeutics Company Profile

Stoke Therapeutics, Inc is a clinical-stage biotechnology company focused on developing genetic medicines for severe diseases caused by insufficient protein production. The company uses its proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) platform to design antisense oligonucleotides that can increase the expression of specific genes and potentially address the underlying causes of genetic disorders.

Stoke’s leading product candidate is STK-001, an investigational antisense oligonucleotide being developed for the treatment of Dravet syndrome, a severe genetic epilepsy most commonly associated with mutations in the SCN1A gene.