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

Key Points

• Wall Street Zen downgraded Denali Therapeutics from “hold” to “sell,” although broader analyst sentiment remains more positive, with a “Moderate Buy” consensus and an average price target of $35.85.
• Denali reported a quarterly loss of $0.68 per share, missing estimates by $0.17, while revenue of $3.60 million exceeded expectations of $2.15 million. Analysts expect a full-year loss of $2.67 per share.
• Institutional investors own approximately 92.92% of the company, with major purchases from BlackRock and increased stakes from Temasek, Dimensional Fund Advisors, Pictet Asset Management, and ADAR1 Capital.

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 report issued on Saturday, Wall Street Zen reports.

Other equities analysts also recently issued reports about the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Denali Therapeutics in a report on Friday, July 17th. B. Riley Financial raised their price target on shares of Denali Therapeutics from $30.00 to $35.00 and gave the company a "buy" rating in a report on Tuesday, August 25th. Robert W. Baird set a $34.00 price objective on shares of Denali Therapeutics in a research report on Friday, August 7th. Morgan Stanley boosted their price objective on shares of Denali Therapeutics from $35.00 to $36.00 and gave the stock an "overweight" rating in a research note on Thursday, July 23rd. Finally, JPMorgan Chase & Co. started coverage on shares of Denali Therapeutics in a research report on Monday, July 13th. They set an "overweight" rating and a $29.00 target price for the company. Thirteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $35.85.

Denali Therapeutics Stock Up 4.2%

Shares of NASDAQ DNLI opened at $19.45 on Friday. Denali Therapeutics has a 12-month low of $13.75 and a 12-month high of $27.30. The stock's fifty day simple moving average is $22.40 and its two-hundred day simple moving average is $21.83. The stock has a market capitalization of $3.11 billion, a PE ratio of -6.85 and a beta of 1.02. The company has a current ratio of 8.37, a quick ratio of 8.32 and a debt-to-equity ratio of 0.01.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.68) EPS for the quarter, missing the consensus estimate of ($0.51) by ($0.17). The firm had revenue of $3.60 million during the quarter, compared to analysts' expectations of $2.15 million. During the same period last year, the firm posted ($0.72) earnings per share. As a group, analysts expect that Denali Therapeutics will post -2.67 EPS for the current fiscal year.

Insider Activity

In related news, insider Alexander O. Schuth sold 2,857 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $25.07, for a total value of $71,624.99. Following the completion of the transaction, the insider directly owned 281,763 shares of the company's stock, valued at $7,063,798.41. This trade represents a 1.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 9.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in Denali Therapeutics in the 2nd quarter worth $360,759,000. Temasek Holdings Private Ltd grew its stake in Denali Therapeutics by 30.9% during the 4th quarter. Temasek Holdings Private Ltd now owns 7,012,974 shares of the company's stock valued at $115,784,000 after purchasing an additional 1,657,142 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Denali Therapeutics by 13.4% in the first quarter. Dimensional Fund Advisors LP now owns 2,692,175 shares of the company's stock valued at $51,687,000 after purchasing an additional 317,872 shares during the period. Pictet Asset Management Holding SA increased its holdings in shares of Denali Therapeutics by 92.5% in the first quarter. Pictet Asset Management Holding SA now owns 2,558,865 shares of the company's stock valued at $48,439,000 after purchasing an additional 1,229,757 shares during the period. Finally, ADAR1 Capital Management LLC raised its stake in shares of Denali Therapeutics by 3,490.9% in the first quarter. ADAR1 Capital Management LLC now owns 1,871,455 shares of the company's stock worth $35,932,000 after purchasing an additional 1,819,339 shares during the last quarter. Institutional investors and hedge funds own 92.92% of the company's stock.

Denali Therapeutics Company Profile

Denali Therapeutics Inc is a biopharmaceutical company focused on discovering and developing medicines for patients with neurodegenerative diseases. The company's research programs address conditions involving the central nervous system, including Parkinson's disease, Alzheimer's disease, amyotrophic lateral sclerosis and lysosomal storage disorders.

Denali's drug-discovery approach is built around its Transport Vehicle platform, which is designed to help therapeutic molecules cross the blood-brain barrier and reach the brain.

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