Denali Therapeutics (NASDAQ:DNLI) Shares Down 5.1% - Here's Why

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 share price fell 5.1% on Tuesday . The company traded as low as $13.44 and last traded at $13.21. 190,194 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 1,394,497 shares. The stock had previously closed at $13.92.

Wall Street Analyst Weigh In

A number of research firms have weighed in on DNLI. William Blair raised shares of Denali Therapeutics to a "strong-buy" rating in a research note on Thursday, April 24th. Robert W. Baird lowered their target price on shares of Denali Therapeutics from $30.00 to $29.00 and set an "outperform" rating for the company in a report on Thursday, May 8th. Bank of America lowered their target price on shares of Denali Therapeutics from $28.00 to $27.00 and set a "buy" rating for the company in a report on Monday, May 19th. HC Wainwright lowered their target price on shares of Denali Therapeutics from $80.00 to $32.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. Finally, TD Cowen upgraded shares of Denali Therapeutics to a "strong-buy" rating in a report on Monday, July 28th. One equities research analyst has rated the stock with a hold rating, thirteen have assigned a buy rating and three have given a strong buy rating to the stock. According to MarketBeat, Denali Therapeutics currently has an average rating of "Buy" and a consensus price target of $33.85.

Denali Therapeutics Stock Performance

The business's 50 day moving average is $14.30 and its two-hundred day moving average is $15.50. The firm has a market capitalization of $1.92 billion, a PE ratio of -4.96 and a beta of 1.36.

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

Insider Activity at Denali Therapeutics

In other news, CEO Ryan J. Watts sold 495,282 shares of the firm's stock in a transaction that occurred on Wednesday, July 9th. The shares were sold at an average price of $15.00, for a total value 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 approximately $3,796,065. This trade represents a 66.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Denali Therapeutics

A number of large investors have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Denali Therapeutics by 88.9% during the first 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. Wellington Management Group LLP lifted its position in Denali Therapeutics by 15.9% during the first quarter. Wellington Management Group LLP now owns 11,409,598 shares of the company's stock valued at $155,113,000 after purchasing an additional 1,561,647 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in Denali Therapeutics by 42.8% during the first 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. Millennium Management LLC lifted its position in Denali Therapeutics by 269.4% during the first quarter. Millennium Management LLC now owns 1,493,068 shares of the company's stock valued at $20,298,000 after purchasing an additional 1,088,844 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in Denali Therapeutics by 58.1% during the first quarter. Goldman Sachs Group Inc. now owns 1,672,078 shares of the company's stock valued at $22,732,000 after purchasing an additional 614,555 shares during the last quarter. 92.92% of the stock is currently owned by institutional investors.

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.

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