Cantor Fitzgerald Has Weak Outlook for DNLI FY2025 Earnings

Key Points

• Cantor Fitzgerald has lowered its forecast for Denali Therapeutics' FY2025 earnings per share from ($2.97) to ($3.01), while the consensus estimate is ($2.71) per share.
• Denali Therapeutics reported a quarterly earnings per share of ($0.72), exceeding analysts' expectations of ($0.74), despite a year-on-year decline from ($0.59) EPS.
• Insider trading showed CEO Ryan J. Watts sold 495,282 shares at an average price of $15.00, resulting in a 66.18% reduction in his ownership of the stock.

Denali Therapeutics Inc. (NASDAQ:DNLI - Free Report) - Equities researchers at Cantor Fitzgerald cut their FY2025 earnings per share estimates for shares of Denali Therapeutics in a research note issued to investors on Tuesday, August 12th. Cantor Fitzgerald analyst J. Schimmer now expects that the company will post earnings of ($3.01) per share for the year, down from their previous estimate of ($2.97). The consensus estimate for Denali Therapeutics' current full-year earnings is ($2.71) per share. Cantor Fitzgerald also issued estimates for Denali Therapeutics' FY2026 earnings at ($3.26) EPS.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last posted its earnings results on Monday, August 11th. The company reported ($0.72) earnings per share for the quarter, topping analysts' consensus estimates of ($0.74) by $0.02. During the same period last year, the business earned ($0.59) EPS.

Several other analysts also recently weighed in on the company. William Blair upgraded Denali Therapeutics to a "strong-buy" rating in a research report on Thursday, April 24th. TD Cowen raised Denali Therapeutics to a "strong-buy" rating in a research note on Monday, July 28th. HC Wainwright decreased their target price on Denali Therapeutics from $80.00 to $32.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. Bank of America reduced their price objective on Denali Therapeutics from $28.00 to $27.00 and set a "buy" rating for the company in a research note on Monday, May 19th. Finally, Wedbush cut their target price on Denali Therapeutics from $32.00 to $30.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 7th. One analyst has rated the stock with a hold rating, thirteen have issued a buy rating and three have given a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $33.85.

Denali Therapeutics Stock Performance

DNLI traded down $0.54 during trading on Thursday, hitting $14.27. The stock had a trading volume of 55,030 shares, compared to its average volume of 1,404,252. The firm has a market cap of $2.09 billion, a price-to-earnings ratio of -5.15 and a beta of 1.36. The company has a 50 day moving average price of $14.29 and a 200-day moving average price of $15.48. Denali Therapeutics has a one year low of $10.57 and a one year high of $33.33. The company has a debt-to-equity ratio of 0.01, a current ratio of 10.27 and a quick ratio of 9.56.

Hedge Funds Weigh In On Denali Therapeutics

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Wellington Management Group LLP lifted its stake in shares of Denali Therapeutics by 15.9% in the 1st quarter. Wellington Management Group LLP now owns 11,409,598 shares of the company's stock valued at $155,113,000 after acquiring an additional 1,561,647 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Denali Therapeutics by 88.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 6,766,916 shares of the company's stock valued at $91,996,000 after purchasing an additional 3,184,042 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in Denali Therapeutics by 42.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,367,234 shares of the company's stock valued at $59,373,000 after purchasing an additional 1,308,619 shares during the last quarter. Norges Bank bought a new position in Denali Therapeutics during the 2nd quarter valued at approximately $55,224,000. Finally, Geode Capital Management LLC raised its position in Denali Therapeutics by 4.4% during the 2nd quarter. Geode Capital Management LLC now owns 3,172,305 shares of the company's stock valued at $44,386,000 after purchasing an additional 135,129 shares during the last quarter. 92.92% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO Ryan J. Watts sold 495,282 shares of the business's stock in a transaction dated Wednesday, July 9th. The stock was sold at an average price of $15.00, for a total transaction of $7,429,230.00. Following the completion of the transaction, the chief executive officer directly owned 253,071 shares in the company, valued at $3,796,065. The trade was a 66.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 12.50% of the stock is currently owned by insiders.

About Denali Therapeutics

Denali Therapeutics Inc, a biopharmaceutical company, develops a portfolio of product candidates engineered to cross the blood-brain barrier for neurodegenerative diseases and lysosomal storage diseases in the United States. The company's transport vehicle (TV)-enabled programs include DNL310 ETV, an IDS enzyme replacement therapy program for MPS II; TAK-594/DNL593 which is in Phase 1/II for frontotemporal dementia-granulin; DNL126 program for MPS IIIA; and DNL622 for MPS I, as well as other preclinical programs that target amyloid beta and HER2.

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