Denali Therapeutics (NASDAQ:DNLI) Trading Down 5.1% - Here's What Happened

Key Points

• Denali Therapeutics' shares dropped 5.1% to $13.21, with an unusually low trading volume of 190,194 shares compared to the average of 1,394,497 shares.
• Analysts have mixed views on the stock, with one upgrading it to a "strong-buy" and consensus price target set at $33.85, despite several firms lowering their target prices.
• Insider trading was notable as CEO Ryan J. Watts sold 495,282 shares, significantly decreasing his ownership stake in the company by 66.18%.

Denali Therapeutics Inc. (NASDAQ:DNLI - Get Free Report)'s stock price was down 5.1% during trading on Tuesday . The stock traded as low as $13.44 and last traded at $13.21. Approximately 190,194 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 1,394,497 shares. The stock had previously closed at $13.92.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on DNLI shares. 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. Robert W. Baird reduced their price objective on Denali Therapeutics from $30.00 to $29.00 and set an "outperform" rating for the company in a research note on Thursday, May 8th. HC Wainwright reduced their price objective 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. Wedbush reduced their price objective on Denali Therapeutics from $32.00 to $30.00 and set an "outperform" rating for the company in a research note on Wednesday, May 7th. Finally, William Blair upgraded Denali Therapeutics to a "strong-buy" rating in a research note on Thursday, April 24th. One equities research analyst has rated the stock with a hold rating, thirteen have given a buy rating and three have issued a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $33.85.

Denali Therapeutics Price Performance

The firm's fifty day simple moving average is $14.30 and its 200 day simple moving average is $15.31. The firm has a market cap of $2.15 billion, a P/E ratio of -5.25 and a beta of 1.36. The company has a debt-to-equity ratio of 0.01, a quick ratio of 9.56 and a current ratio of 10.27.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last released its quarterly earnings data on Monday, August 11th. The company reported ($0.72) EPS for the quarter, beating the consensus estimate of ($0.74) by $0.02. During the same quarter in the prior year, the company posted ($0.59) EPS. As a group, analysts forecast that Denali Therapeutics Inc. will post -2.71 earnings per share for the current year.

Insider Buying and Selling at Denali Therapeutics

In other Denali Therapeutics news, CEO Ryan J. Watts sold 495,282 shares of the stock in a transaction dated Wednesday, July 9th. The shares were 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 owned 253,071 shares of the company's stock, valued at $3,796,065. This represents a 66.18% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Alexander O. Schuth sold 2,937 shares of the stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $13.58, for a total transaction of $39,884.46. Following the transaction, the insider directly owned 242,346 shares of the company's stock, valued at $3,291,058.68. This trade represents a 1.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold 501,962 shares of company stock valued at $7,520,799 in the last 90 days. Insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Sterling Capital Management LLC lifted its holdings in shares of Denali Therapeutics by 589.9% in the 4th quarter. Sterling Capital Management LLC now owns 1,773 shares of the company's stock valued at $36,000 after acquiring an additional 1,516 shares during the last quarter. Headlands Technologies LLC bought a new position in shares of Denali Therapeutics in the 2nd quarter valued at about $26,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Denali Therapeutics by 277.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 2,111 shares of the company's stock valued at $29,000 after acquiring an additional 1,551 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of Denali Therapeutics in the 1st quarter valued at about $41,000. Finally, GF Fund Management CO. LTD. bought a new position in shares of Denali Therapeutics in the 4th quarter valued at about $62,000. Institutional investors own 92.92% of the company's stock.

Denali Therapeutics Company Profile

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.