Denali Therapeutics (NASDAQ:DNLI) Given New $30.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley has lowered its price target for Denali Therapeutics from $33.00 to $30.00 while maintaining an "overweight" rating, indicating potential upside from the current price.
• The stock recently traded up 2.6%, closing at $15.09, with a market cap of $2.21 billion and a consensus rating of "Buy" with an average target price of $33.62.
• Insider trading saw significant activity, with CEO Ryan J. Watts selling 495,282 shares, representing a 66.18% decrease in his ownership stake.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) had its price objective dropped by Morgan Stanley from $33.00 to $30.00 in a report released on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's price target suggests a potential upside of 93.67% from the stock's current price.

A number of other analysts have also commented on DNLI. HC Wainwright cut their price target on Denali Therapeutics from $80.00 to $32.00 and set a "buy" rating on the stock in a report on Wednesday, May 7th. Robert W. Baird cut their price target on Denali Therapeutics from $30.00 to $29.00 and set an "outperform" rating on the stock in a report on Thursday, May 8th. Bank of America cut their price target on Denali Therapeutics from $28.00 to $27.00 and set a "buy" rating on the stock in a report on Monday, May 19th. TD Cowen upgraded Denali Therapeutics to a "strong-buy" rating in a report on Monday, July 28th. Finally, William Blair upgraded Denali Therapeutics to a "strong-buy" rating in a report on Thursday, April 24th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $33.62.

Denali Therapeutics Trading Up 1.7%

DNLI stock traded up $0.26 during midday trading on Monday, hitting $15.49. 2,743,895 shares of the company's stock were exchanged, compared to its average volume of 1,740,341. The stock's fifty day moving average price is $14.31 and its 200-day moving average price is $15.08. The company has a debt-to-equity ratio of 0.01, a quick ratio of 10.27 and a current ratio of 10.27. The company has a market cap of $2.26 billion, a PE ratio of -5.53 and a beta of 1.36. Denali Therapeutics has a one year low of $10.57 and a one year high of $33.33.

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 the consensus estimate of ($0.74) by $0.02. During the same period in the prior year, the business earned ($0.59) EPS. Research analysts predict that Denali Therapeutics will post -2.71 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Carole Ho sold 2,937 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $13.58, for a total transaction of $39,884.46. Following the sale, the insider owned 217,391 shares in the company, valued at approximately $2,952,169.78. This represents a 1.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Alexander O. Schuth sold 2,937 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $13.58, for a total value of $39,884.46. Following the sale, the insider owned 242,346 shares in the company, valued at $3,291,058.68. The trade was a 1.20% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 501,962 shares of company stock worth $7,520,799. Corporate insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Denali Therapeutics

Institutional investors have recently bought and sold shares of the business. Sterling Capital Management LLC increased its position in Denali Therapeutics by 589.9% during the fourth quarter. Sterling Capital Management LLC now owns 1,773 shares of the company's stock worth $36,000 after buying an additional 1,516 shares during the last quarter. Headlands Technologies LLC acquired a new stake in Denali Therapeutics during the second quarter worth approximately $26,000. State of Wyoming acquired a new stake in Denali Therapeutics during the second quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd grew its position in Denali Therapeutics by 277.0% during the first quarter. Caitong International Asset Management Co. Ltd now owns 2,111 shares of the company's stock worth $29,000 after buying an additional 1,551 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Denali Therapeutics during the first quarter worth approximately $41,000. Institutional investors and hedge funds own 92.92% of the company's stock.

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.