Denali Therapeutics Inc. (NASDAQ:DNLI) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Denali Therapeutics has a consensus analyst rating of “Moderate Buy” from 16 brokerages, with an average 12-month price target of $34.75.
• Recent analyst updates were mixed but mostly constructive, including upgraded or maintained buy/overweight calls from firms like HC Wainwright, Morgan Stanley, Leerink Partners, and Goldman Sachs, while Wall Street Zen lowered its view to sell.
• The company reported a quarterly EPS loss of ($0.69), beating estimates, and analysts expect Denali to remain unprofitable this year; meanwhile, institutional investors own 92.92% of the stock.

Shares of Denali Therapeutics Inc. (NASDAQ:DNLI - Get Free Report) have received a consensus rating of "Moderate Buy" from the sixteen brokerages that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $34.75.

A number of research firms have commented on DNLI. Wall Street Zen raised shares of Denali Therapeutics from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 9th. HC Wainwright increased their price target on Denali Therapeutics from $32.00 to $42.00 and gave the company a "buy" rating in a report on Thursday, March 26th. Morgan Stanley reduced their price objective on Denali Therapeutics from $40.00 to $35.00 and set an "overweight" rating for the company in a research report on Friday, May 22nd. Leerink Partners lowered their target price on Denali Therapeutics from $40.00 to $35.00 and set an "outperform" rating on the stock in a report on Wednesday, April 22nd. Finally, The Goldman Sachs Group raised their target price on Denali Therapeutics from $35.00 to $40.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th.

Institutional Trading of Denali Therapeutics

Several large investors have recently added to or reduced their stakes in DNLI. Norges Bank bought a new position in Denali Therapeutics in the fourth quarter worth approximately $84,525,000. Holocene Advisors LP lifted its position in Denali Therapeutics by 677.8% during the third quarter. Holocene Advisors LP now owns 3,135,712 shares of the company's stock valued at $45,531,000 after purchasing an additional 2,732,540 shares in the last quarter. ADAR1 Capital Management LLC lifted its position in Denali Therapeutics by 3,490.9% during the first quarter. ADAR1 Capital Management LLC now owns 1,871,455 shares of the company's stock valued at $35,932,000 after purchasing an additional 1,819,339 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in Denali Therapeutics by 77.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,835,803 shares of the company's stock valued at $63,329,000 after purchasing an additional 1,672,098 shares during the period. Finally, Temasek Holdings Private Ltd grew its holdings in Denali Therapeutics by 30.9% during the fourth 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 period. 92.92% of the stock is currently owned by institutional investors.

Denali Therapeutics Price Performance

Shares of NASDAQ:DNLI opened at $26.48 on Tuesday. Denali Therapeutics has a fifty-two week low of $12.58 and a fifty-two week high of $27.30. The business has a 50-day simple moving average of $21.95 and a two-hundred day simple moving average of $20.44. The company has a debt-to-equity ratio of 0.01, a quick ratio of 9.28 and a current ratio of 9.28. The firm has a market cap of $4.20 billion, a price-to-earnings ratio of -9.19 and a beta of 0.96.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($0.69) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.73) by $0.04. During the same quarter in the prior year, the firm posted ($0.78) EPS. On average, analysts expect that Denali Therapeutics will post -2.77 earnings per share for the current year.

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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