Stoke Therapeutics (NASDAQ:STOK) Shares Gap Down on Disappointing Earnings

Shares of Stoke Therapeutics, Inc. (NASDAQ:STOK) gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $33.96, but opened at $32.89. Stoke Therapeutics shares last traded at $33.42, with a volume of 128,736 shares changing hands.

The company reported ($0.97) EPS for the quarter, missing analysts’ consensus estimates of ($0.75) by ($0.22). The firm had revenue of $1.40 million for the quarter, compared to analyst estimates of $5.32 million. Stoke Therapeutics had a return on equity of 13.28% and a net margin of 19.73%.

Trending Headlines about Stoke Therapeutics

Here are the key news stories impacting Stoke Therapeutics this week:

• Positive Sentiment: Analysts raised targets and ratings — Needham raised its price target from $35 to $40 and maintains a “buy” rating; Wedbush raised its target from $36 to $38 and keeps an “outperform” rating, signaling continued analyst confidence and potential upside. Analyst Price Target Raises
• Neutral Sentiment: Company granted inducement stock options (58,650 options to six new hires effective March 16, 2026) — this helps recruit talent but adds potential future dilution. Inducement Grants Release
• Negative Sentiment: Quarterly results missed expectations — EPS of ($0.97) vs. consensus ($0.75) and revenue $1.4M vs. $5.32M expected. The revenue shortfall and wider EPS miss are the clearest drivers of downward pressure on the share price. Quarterly Earnings Report
• Negative Sentiment: Insider sale — Director Arthur A. Levin sold 605 shares at an average $36.80, reducing his holdings by ~12.5%. The sale is relatively small in dollar terms but may be interpreted negatively by some investors. SEC Form 4

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Guggenheim began coverage on shares of Stoke Therapeutics in a research report on Thursday, February 5th. They set a “buy” rating and a $60.00 price objective for the company. Chardan Capital raised their target price on Stoke Therapeutics from $24.00 to $35.00 and gave the company a “buy” rating in a report on Monday, January 5th. UBS Group set a $50.00 price target on shares of Stoke Therapeutics in a research report on Monday, December 15th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Stoke Therapeutics in a research note on Monday, December 29th. Finally, Loop Capital set a $35.00 target price on shares of Stoke Therapeutics in a research note on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Stoke Therapeutics presently has an average rating of “Moderate Buy” and an average price target of $39.83.

Insider Buying and Selling at Stoke Therapeutics

In other Stoke Therapeutics news, insider Arthur Tzianabos sold 4,355 shares of the company’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $40.00, for a total value of $174,200.00. Following the completion of the transaction, the insider owned 31,339 shares in the company, valued at approximately $1,253,560. This represents a 12.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Adrian R. Krainer sold 33,243 shares of the firm’s stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $39.74, for a total transaction of $1,321,076.82. Following the completion of the sale, the director owned 283,302 shares in the company, valued at $11,258,421.48. The trade was a 10.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 38,203 shares of company stock worth $1,517,541 over the last ninety days. 9.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Stoke Therapeutics

Hedge funds have recently made changes to their positions in the business. Janus Henderson Group PLC boosted its position in shares of Stoke Therapeutics by 333.8% during the fourth quarter. Janus Henderson Group PLC now owns 1,450,933 shares of the company’s stock worth $46,031,000 after buying an additional 1,116,452 shares during the period. State Street Corp increased its position in Stoke Therapeutics by 75.2% in the 4th quarter. State Street Corp now owns 2,498,049 shares of the company’s stock valued at $79,288,000 after acquiring an additional 1,072,176 shares during the period. Corient Private Wealth LLC acquired a new stake in Stoke Therapeutics in the 2nd quarter valued at approximately $7,489,000. BVF Inc. IL raised its stake in Stoke Therapeutics by 36.7% during the 4th quarter. BVF Inc. IL now owns 2,265,674 shares of the company’s stock valued at $71,912,000 after acquiring an additional 608,578 shares in the last quarter. Finally, Wellington Management Group LLP raised its stake in Stoke Therapeutics by 438.2% during the 3rd quarter. Wellington Management Group LLP now owns 737,753 shares of the company’s stock valued at $17,337,000 after acquiring an additional 600,687 shares in the last quarter.

Stoke Therapeutics Trading Down 3.2%

The company has a market cap of $1.88 billion, a price-to-earnings ratio of 49.06 and a beta of 1.07. The stock has a 50-day simple moving average of $32.69 and a 200-day simple moving average of $29.89.

About Stoke Therapeutics

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.