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Stoke Therapeutics Inc(STOK)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$24.8
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for STOK

09/25/2026: STOK (1-star) is currently NOT-A-BUY. Pass it for now.

Stoke Therapeutics is a clinical-stage biotechnology company developing RNA-based medicines aimed at treating severe genetic diseases through its proprietary TANGO platform. The company's main strength lies in its specialized approach to upregulating protein expression, which could address unmet needs in conditions like Dravet syndrome. Its primary growth opportunity rests on the successful clinical development and potential commercialization of lead candidates. However, the company faces high risks, including the absence of commercial revenue, significant cash burn, and intense competition from other genetic medicine firms. Stoke may suit growth-oriented investors who are comfortable with the high volatility and long-term uncertainty associated with clinical-stage biotech development.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers high growth potential linked to clinical breakthroughs but carries significant developmental risk.
Momentum investorStrong fit while signal remains positiveMomentum traders may engage during clinical data readout periods when price volatility increases.
Value investorWeak fitAs a loss-making clinical-stage company, it lacks the earnings metrics required for value-based analysis.
Dividend investorWeak fitThe company does not pay dividends and reinvests all capital into research.
Low-risk investorWeak fitClinical-stage biotechnology is inherently high-risk and unsuitable for conservative portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighClinical data outcomes frequently cause sharp price fluctuations.
Valuation riskMedium / highMarket value is largely based on long-term potential, making it sensitive to discount rate changes.
Competition risk (genetic medicine)HighNew therapeutic modalities like CRISPR may challenge the relevance of RNA-based approaches.
Business qualityMediumThe firm has a strong scientific platform but lacks commercial validation.
Dividend incomeLow / noneThe company does not generate the cash flow required for dividends.
Execution riskHighThe company's survival depends on successful clinical trial execution and regulatory approval.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -38.48%
Avg. Invested days 27
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
STOK receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft quantitative characteristics, and weak price momentum.

Company Fundamentals

★★★★★
STOK has solid overall fundamentals (4 stars), with moderate financial health, strong growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+92.3%) and strong cash generation (FCF margin 24.4%) are partially offset by soft profitability (net margin -3.7%), modest insider ownership of 3.68%.

Financial Health Rating

★★★★★
STOK's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 59.2%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Revenue growth is STOK's strongest growth driver at +404.5% FY2025 versus FY2024 (strong, 5 stars). Earnings growth (+92.3%, strong) and free-cash-flow growth (+151.6%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 123.6% and approximately 76.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 3.68% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

RTW INVESTMENTS, LLC 8.72%
BlackRock Inc 8.35%
FMR Inc 8.34%
Lynx1 Capital Management, LP 6.26%
Redmile Group, LLC 6.12%

Unit Economics (Per $1K Revenue)

★★★★★
STOK generates approximately $1,000 of gross profit, $-112 of operating income, and $244 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 0.00%

Quantitative Style Profile

★★★★★
STOK has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.60B USD
Price to earnings Ratio -
1Y Target Price 46.46
Price to earnings Ratio -
1Y Target Price 46.46
Volume (30-day avg) 837.1K shares
Beta 1.23
52 Weeks Range 20.32 - 40.22
Updated Date 09/25/2026
52 Weeks Range 20.32 - 40.22
Updated Date 09/25/2026
Dividends yield (FY) -
Basic EPS (TTM) -3.4

How Company Makes Money

Business areaWhat it includesRetail investor read
Research CollaborationsCollaborative research agreements with larger pharmaceutical firms to leverage the TANGO platform.The company currently relies on upfront payments and milestones from research partners rather than product sales.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 204.08
Enterprise Value 1.39B
Price to Sales(TTM) 58.01
Enterprise Value 1.39B
Price to Sales(TTM) 58.01
Enterprise Value to Revenue 50.43
Enterprise Value to EBITDA 26.37
Shares Outstanding 64.53M
Shares Floating 49.22M
Shares Outstanding 64.53M
Shares Floating 49.22M
Percent Insiders 3.68
Percent Institutions 123.59

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Stoke Therapeutics Inc

Exchange NASDAQ
Headquarters Bedford, MA, United States
IPO Launch date 2019-06-19
CEO & Director Mr. Ian F. Smith A.C.A., C.P.A.
Sector Healthcare
Industry Biotechnology
Full time employees 170
Full time employees 170

Stoke Therapeutics, Inc. engages in the development of treatments for severe genetic diseases by upregulating protein expression. The company utilizes its proprietary Targeted Augmentation of Nuclear Gene Output (TANGO) approach in developing antisense oligonucleotides (ASOs) to selectively restore protein levels. Its lead product candidates include STK-002, which is in Phase 1 clinical trials for the treatment of autosomal dominant optic atrophy; and Zorevunersen (STK-001), an investigational new medicine for the treatment of Dravet syndrome is being evaluated in phase 3 clinical trials. The company also develops programs focused on various targets, including haploinsufficiency diseases of the central nervous system and eye. It has a license and collaboration with Biogen Inc. for the development and commercialization of zorevunersen medicine for the treatment of Dravet syndrome; and Acadia Pharmaceuticals Inc. for the discovery, development, and commercialization of novel RNA-based medicines for the treatment of genetic neurodevelopmental diseases. 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.