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Design Therapeutics (DSGN)
NASDAQ:DSGN
US Market
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Design Therapeutics (DSGN) AI Stock Analysis

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DSGN

Design Therapeutics

(NASDAQ:DSGN)

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Neutral 52 (OpenAI - Gpt-5.6Sol)
Rating:52Neutral
Price Target:
$11.00
▼(-29.44% Downside)
Action:Reiterated
Date:08/04/26
The score is primarily weighed down by weak financial performance driven by zero revenue, sizable ongoing losses, and persistent negative free cash flow, partially offset by a low-debt balance sheet. Technicals are roughly neutral with no strong momentum signal, while valuation metrics provide limited support due to a negative P/E and no dividend yield data. The main upside factor in the score is the positive Phase 1/2 DT-216P2 update and stated registrational-path intent.
Positive Factors
GeneTAC Platform
The GeneTAC platform gives Design Therapeutics a focused technological approach to serious genetic diseases caused by repeat expansions. If the mechanism translates clinically, a reusable platform could support multiple programs and create durable pipeline breadth beyond a single asset.
Negative Factors
Pre-Revenue Profile
Zero reported revenue means Design Therapeutics currently lacks commercial operating income to fund research, development, or corporate costs. Until a program reaches commercialization, the business remains dependent on its balance sheet and external financing rather than a self-sustaining revenue engine.
Read all positive and negative factors
Positive Factors
Negative Factors
GeneTAC Platform
The GeneTAC platform gives Design Therapeutics a focused technological approach to serious genetic diseases caused by repeat expansions. If the mechanism translates clinically, a reusable platform could support multiple programs and create durable pipeline breadth beyond a single asset.
Read all positive factors

Design Therapeutics (DSGN) vs. SPDR S&P 500 ETF (SPY)

Design Therapeutics Business Overview & Revenue Model

Company Description
Design Therapeutics, Inc. is a biopharmaceutical company in the preclinical phase that focuses on creating treatments for genetic conditions stemming from nucleotide repeat expansions. Its current pipeline targets Friedreich's Ataxia (FA), a sever...

Design Therapeutics Financial Statement Overview

Summary
Overall fundamentals are constrained by a pre-revenue profile with substantial, persistent losses (TTM net loss ~$70.8M) and continued cash burn (TTM operating and free cash flow about -$55.1M). The balance sheet is a mitigating strength with very low debt (~$2.0M; debt-to-equity ~0.01) and meaningful equity (~$201.9M), but equity has declined over time and returns on equity are materially negative.
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
26
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit0.000.000.00-537.00K-466.00K0.00
EBITDA-72.19M-69.17M-48.99M-66.33M-62.90M-35.40M
Net Income-70.80M-69.79M-49.59M-66.86M-63.31M-35.53M
Balance Sheet
Total Assets215.13M226.20M252.09M289.64M341.14M390.56M
Cash, Cash Equivalents and Short-Term Investments207.40M219.84M245.48M281.80M330.39M384.06M
Total Debt2.03M1.53M2.33M3.05M3.69M3.63M
Total Liabilities13.27M13.70M10.00M11.96M13.83M8.43M
Stockholders Equity201.86M212.50M242.10M277.69M327.31M382.13M
Cash Flow
Free Cash Flow-55.14M-54.55M-43.45M-58.82M-52.23M-30.91M
Operating Cash Flow-55.08M-54.36M-43.10M-58.56M-51.32M-29.38M
Investing Cash Flow2.39M22.91M43.95M52.54M-220.99M-53.64M
Financing Cash Flow45.89M25.74M513.00K724.00K235.00K379.21M

Design Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.59
Price Trends
50DMA
13.28
Negative
100DMA
13.00
Negative
200DMA
12.12
Negative
Market Momentum
MACD
-0.75
Negative
RSI
39.48
Neutral
STOCH
54.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSGN, the sentiment is Negative. The current price of 15.59 is above the 20-day moving average (MA) of 11.47, above the 50-day MA of 13.28, and above the 200-day MA of 12.12, indicating a bearish trend. The MACD of -0.75 indicates Negative momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 54.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSGN.

Design Therapeutics Risk Analysis

Design Therapeutics disclosed 78 risk factors in its most recent earnings report. Design Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Design Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$680.30M-3.63-73.18%――9.05%
52
Neutral
$694.66M-9.09-34.03%――-5.51%
52
Neutral
$726.09M-3.33-106.15%――10.96%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
$431.44M37.20-0.02%―125.12%98.69%
48
Neutral
$246.26M-2.61-41.85%――64.51%
45
Neutral
$136.80M-0.93-114.26%―-62.08%-2.62%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DSGN
Design Therapeutics
10.73
5.03
88.25%
ASMB
Assembly Biosciences
20.46
-7.04
-25.59%
KRRO
Korro Bio
9.29
-28.21
-75.23%
ANNX
Annexon Biosciences
3.86
0.81
26.56%
AURA
Aura Biosciences Inc
6.46
0.78
13.73%
LXEO
Lexeo Therapeutics, Inc.
3.00
-6.00
-66.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026