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DSGNDesign Therapeutics, Inc.Sell5.3·$15.28+4.23%
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Design Therapeutics, Inc. (DSGN) Stock Analysis

Inst Constrain edge

SellVALUE-TRAP 2/5Moderate Confidence

Healthcare · Biotechnology

Sell if holding. Engine safety override at $15.28: Quality below floor (1.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Elevated put/call ratio: 8.00; Below-average business quality.

Design Therapeutics, Inc. a clinical-stage biopharmaceutical company, research, designs, develops, and commercializes small molecule therapeutic drugs for the treatment of genetic diseases in the United States. The company utilizes its GeneTAC platform to design and develop... Read more

$15.28+16.8% A.UpsideScore 5.3/10#92 of 258 Biotechnology
QualityF-score2 / 9FCF yield-3.23%
Stop $14.55Target $18.27(analyst − 13%)A.R:R 1.1:1
Analyst target$21.00+37.4%6 analysts
$18.27our TP
$15.28price
$21.00mean
$22

Sell if holding. Engine safety override at $15.28: Quality below floor (1.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Elevated put/call ratio: 8.00; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.3/10, moderate confidence.

Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 33d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: speculative.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-05

Recent Developments — Design Therapeutics, Inc.

Generated 2026-07-05T09:50:25Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 6, 202633d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Quality below floor (1.2 < 4.0)
Value-trap signals (2/5): Margin compression (op margin -69.1%), High leverage (D/E 1.6)

Key Metrics

P/E (TTM)
P/E (Fwd)-9.6
Mkt Cap$977M
EV/EBITDA-9.7
Profit Mgn0.0%
ROE-31.3%
Rev Growth
Beta1.59
DividendNone
Rating analysts13

Quality Signals

Piotroski F2/9

Options Flow

P/C8.00bearish
IV117%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Roe
0.0
Roa
0.0
Gross Margin
0.0
Operating Margin
0.0
Net Margin
0.0
Fcf Quality
0.0
Piotroski F
2.2
Moat
3.2
Current Ratio
5.0
Cash-burning (FCF negative)No competitive moatWeak Piotroski F-Score: 2/9Quality concerns

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Support Resistance
0.1
Bollinger
0.3
52w Position
8.1
GatesA.R:R 1.1 < 1.5@spotMomentum 8.1>=5.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 33d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Speculative
RSI
88 · Overbought
20D MA 50D MA 200D MAGOLDEN CROSSSupport $10.11Resistance $15.67

Price Targets

$15
$18
A.Upside+19.6%
A.R:R1.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (1.2 < 4.0)
! Value-trap signals (2/5): Margin compression (op margin -69.1%), High leverage (D/E 1.6)
! asymmetry at 1.1 (below the engine's 1.5 threshold)@spot

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-06 (33d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DSGN stock a buy right now?

Sell if holding. Engine safety override at $15.28: Quality below floor (1.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Elevated put/call ratio: 8.00; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $14.55. Score 5.3/10, moderate confidence.

What is the DSGN stock price target?

Take-profit target: $18.27 (+16.8% upside). Prior stop was $14.55. Stop-loss: $14.55.

What are the risks of investing in DSGN?

Quality below floor (1.2 < 4.0); Value-trap signals (2/5): Margin compression (op margin -69.1%), High leverage (D/E 1.6).

Is DSGN overvalued or undervalued?

Design Therapeutics, Inc. trades at a P/E of N/A (forward -9.6). TrendMatrix value score: 7.5/10. Verdict: Sell.

What do analysts say about DSGN?

13 analysts cover DSGN with a consensus score of 4.3/5. Average price target: $21.

What does Design Therapeutics, Inc. do?Design Therapeutics, Inc. a clinical-stage biopharmaceutical company, research, designs, develops, and commercializes...

Design Therapeutics, Inc. a clinical-stage biopharmaceutical company, research, designs, develops, and commercializes small molecule therapeutic drugs for the treatment of genetic diseases in the United States. The company utilizes its GeneTAC platform to design and develop therapeutic candidates for inherited diseases caused by nucleotide repeat expansion. Its lead product candidates for potentially disease-modifying treatment comprises Friedreich Ataxia, a monogenic, autosomal recessive, progressive multi-system disease that affects organ systems dependent on mitochondrial function that brings to neurological, cardiac, and metabolic dysfunction; Myotonic Dystrophy Type-1, a dominantly-inherited, monogenic progressive neuromuscular disease affecting skeletal muscle, heart, brain, and other organs; Fuchs Endothelial Corneal Dystrophy, a genetic eye disease characterized by bilateral degeneration of corneal endothelial cells and progressive loss of vision; and Huntington's Disease, a dominantly inherited, monogenic neurodegenerative disease characterized by movement, cognitive, and psychiatric disorders. The company was incorporated in 2017 and is headquartered in Carlsbad, California.

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