Canopy Growth stock tumbles after announcing $200 million share sale plan
BEDFORD, Mass.—Kaye Edward M., MD, a director at Stoke Therapeutics, Inc. (NASDAQ:STOK), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Edward sold a total of 19,289 shares of common stock over two days, March 18 and March 19, 2025. The shares were sold at prices ranging from $8.27 to $8.67, resulting in a total transaction value of $163,672. The transaction comes as the clinical-stage biotech company, currently valued at $452 million, maintains a strong financial position with more cash than debt and a healthy current ratio of 5.8x.
Post-transaction, Edward holds 139,346 shares of Stoke Therapeutics. These sales were reportedly made to cover tax withholding obligations related to the vesting and settlement of restricted stock units. According to InvestingPro data, analysts maintain a strong buy consensus on the stock, with price targets ranging from $15 to $47, suggesting significant upside potential despite the company’s rapid cash burn rate.
In addition to these sales, Edward acquired 216,000 employee stock options and 144,000 restricted stock units on March 20, 2025. These options and units are set to vest over a period, subject to continued service with the company. The stock currently trades at $8.33, down about 24% year-to-date, though InvestingPro analysis suggests the shares are currently undervalued.
In other recent news, Stoke Therapeutics reported a strong financial performance for the fourth quarter, with adjusted earnings per share of -$0.18, surpassing analyst expectations of -$0.55. The company’s revenue reached $22.61 million, significantly exceeding the consensus estimate of $4.1 million and showing growth from $2.8 million in the same quarter the previous year. Despite these positive results, the announcement that CEO Edward M. Kaye will step down overshadowed the earnings beat. Dr. Kaye will transition to an advisory role while remaining on the board of directors.
Stoke Therapeutics plans to initiate its Phase 3 EMPEROR study in the second quarter of 2025, following successful Phase 1/2 trials for its leading drug candidate, zorevunersen. This drug has shown promising results, including a substantial reduction in seizure frequency, which could lead to final approval if replicated in further trials. Analysts at H.C. Wainwright have reiterated a Buy rating and a $47 price target for Stoke Therapeutics, expressing confidence in the company’s strategic positioning and progress toward commercialization. Additionally, Stoke’s recent collaboration with Biogen (NASDAQ:BIIB), which included a $165 million upfront payment, positions the company to fund operations through mid-2028. The company ended 2024 with $246.7 million in cash and equivalents, highlighting its robust financial foundation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.