Denali Therapeutics (NASDAQ:DNLI) Downgraded by Wall Street Zen to "Sell"

Key Points

• Wall Street Zen downgraded Denali Therapeutics to “Sell” from “Hold,” contrasting with the broader analyst consensus of “Moderate Buy” and an average price target of $35.85.
• Denali shares opened at $22.28, down 2.3%, while the company’s latest quarterly results missed expectations on EPS, reporting a loss of $0.68 per share versus the projected loss of $0.51.
• Institutional investors remain heavily involved, owning 92.92% of the stock; major holders including BlackRock, Vanguard and T. Rowe Price recently maintained or increased their positions.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other research firms have also issued reports on DNLI. BTIG Research reaffirmed a "buy" rating and issued a $39.00 price objective on shares of Denali Therapeutics in a research note on Monday, May 11th. JPMorgan Chase & Co. started coverage on Denali Therapeutics in a research report on Monday, July 13th. They issued an "overweight" rating and a $29.00 price target for the company. UBS Group upped their price target on Denali Therapeutics from $25.00 to $34.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. B. Riley Financial raised their price objective on Denali Therapeutics from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Tuesday, August 25th. Finally, Morgan Stanley raised their target price on shares of Denali Therapeutics from $35.00 to $36.00 and gave the company an "overweight" rating in a research note on Thursday, July 23rd. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $35.85.

Denali Therapeutics Stock Down 2.3%

Shares of Denali Therapeutics stock opened at $22.28 on Friday. The firm has a market cap of $3.56 billion, a price-to-earnings ratio of -7.85 and a beta of 1.01. The stock has a 50-day simple moving average of $24.44 and a 200-day simple moving average of $21.83. Denali Therapeutics has a 52-week low of $12.58 and a 52-week high of $27.30. The company has a debt-to-equity ratio of 0.01, a current ratio of 8.37 and a quick ratio of 8.32.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.68) EPS for the quarter, missing analysts' consensus estimates of ($0.51) by ($0.17). The company had revenue of $3.60 million during the quarter, compared to analysts' expectations of $2.15 million. During the same quarter in the prior year, the company earned ($0.72) EPS. On average, equities research analysts expect that Denali Therapeutics will post -2.67 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Alexander O. Schuth sold 2,768 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $23.44, for a total transaction of $64,881.92. Following the transaction, the insider owned 278,995 shares of the company's stock, valued at approximately $6,539,642.80. The trade was a 0.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.70% of the company's stock.

Institutional Investors Weigh In On Denali Therapeutics

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in Denali Therapeutics during the second quarter valued at about $360,759,000. Vanguard Group Inc. lifted its position in shares of Denali Therapeutics by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,057,890 shares of the company's stock worth $215,586,000 after acquiring an additional 1,064,972 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in shares of Denali Therapeutics by 28.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 7,254,132 shares of the company's stock worth $119,766,000 after purchasing an additional 1,615,565 shares in the last quarter. Temasek Holdings Private Ltd grew its holdings in shares of Denali Therapeutics by 30.9% during the 4th quarter. Temasek Holdings Private Ltd now owns 7,012,974 shares of the company's stock worth $115,784,000 after purchasing an additional 1,657,142 shares in the last quarter. Finally, State Street Corp increased its position in shares of Denali Therapeutics by 14.6% during the fourth quarter. State Street Corp now owns 6,263,371 shares of the company's stock valued at $103,408,000 after purchasing an additional 799,110 shares during the period. 92.92% of the stock is owned by institutional investors and hedge funds.

Denali Therapeutics Company Profile

Denali Therapeutics is a clinical‐stage biopharmaceutical company focused on developing therapies for neurodegenerative diseases. The company's research leverages a proprietary Blood–Brain Barrier Transport Vehicle (TV) platform designed to enable large molecules, including antibodies and enzymes, to penetrate the central nervous system. Denali's approach includes small molecules, monoclonal antibodies and gene therapy candidates aimed at key drivers of disorders such as Alzheimer's disease, Parkinson's disease, amyotrophic lateral sclerosis (ALS) and frontotemporal dementia.

Among Denali's lead programs is an orally delivered leucine‐rich repeat kinase 2 (LRRK2) inhibitor for Parkinson's disease, and an anti‐TREM2 antibody designed to modulate microglial activity in Alzheimer's patients.

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