Denali Therapeutics (NASDAQ:DNLI) Shares Down 6.6% - Here's What Happened

Key Points

• Denali Therapeutics shares fell 6.6% on Friday, trading as low as $25.25 after closing at $27.21 the previous day. Volume was well below average, with about 618,243 shares traded versus a 1.78 million daily average.
• Analyst sentiment is mixed but still broadly positive. The stock has a consensus rating of “Moderate Buy” and an average price target of $34.25, even as some firms cut targets or maintained sell ratings.
• The company beat quarterly EPS expectations in its latest earnings report, posting a loss of $0.69 per share versus the expected $0.73 loss. Denali remains a clinical-stage biotech focused on neurodegenerative disease therapies, including Parkinson’s and Alzheimer’s programs.

Denali Therapeutics Inc. (NASDAQ:DNLI - Get Free Report)'s stock price was down 6.6% during trading on Friday . The company traded as low as $25.25 and last traded at $25.4010. Approximately 618,243 shares changed hands during mid-day trading, a decline of 65% from the average daily volume of 1,777,727 shares. The stock had previously closed at $27.21.

Analysts Set New Price Targets

DNLI has been the topic of several research reports. Weiss Ratings reissued a "sell (d-)" rating on shares of Denali Therapeutics in a research report on Monday, April 20th. Wedbush reduced their price target on shares of Denali Therapeutics from $25.00 to $23.00 and set an "outperform" rating on the stock in a research report on Friday, May 8th. HC Wainwright lifted their price target on shares of Denali Therapeutics from $32.00 to $42.00 and gave the company a "buy" rating in a report on Thursday, March 26th. Morgan Stanley decreased their price target on shares of Denali Therapeutics from $40.00 to $35.00 and set an "overweight" rating for the company in a report on Friday, May 22nd. Finally, Wall Street Zen upgraded shares of Denali Therapeutics from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 9th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $34.25.

Denali Therapeutics Price Performance

The company has a market capitalization of $4.05 billion, a P/E ratio of -8.86 and a beta of 0.96. The business's 50-day simple moving average is $21.65 and its 200 day simple moving average is $20.32. The company has a current ratio of 9.28, a quick ratio of 9.28 and a debt-to-equity ratio of 0.01.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.69) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.73) by $0.04. During the same period in the prior year, the business earned ($0.78) EPS. As a group, sell-side analysts anticipate that Denali Therapeutics Inc. will post -2.77 EPS for the current year.

Institutional Investors Weigh In On Denali Therapeutics

A number of institutional investors and hedge funds have recently modified their holdings of DNLI. Foresite Capital Management VI LLC acquired a new position in Denali Therapeutics in the 3rd quarter worth approximately $14,520,000. Capricorn Fund Managers Ltd acquired a new position in Denali Therapeutics during the fourth quarter worth $1,027,000. Holocene Advisors LP increased its holdings in shares of Denali Therapeutics by 677.8% during the 3rd quarter. Holocene Advisors LP now owns 3,135,712 shares of the company's stock valued at $45,531,000 after acquiring an additional 2,732,540 shares during the last quarter. Boxer Capital Management LLC bought a new position in shares of Denali Therapeutics in the third quarter valued at approximately $3,630,000. Finally, Baillie Gifford & Co. raised its holdings in Denali Therapeutics by 6.2% in the 4th quarter. Baillie Gifford & Co. now owns 12,310,889 shares of the company's stock worth $203,253,000 after acquiring an additional 719,304 shares during the period. Institutional investors and hedge funds own 92.92% of the company's stock.

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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