Denali Therapeutics (NASDAQ:DNLI) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Denali Therapeutics (NASDAQ:DNLI) from a "sell" to a "strong sell" in a research note issued Saturday.
• Despite that downgrade, the consensus from analysts remains a "Moderate Buy" (one Strong Buy, 13 Buys, one Hold, one Sell) with an average price target of $35 and several firms recently raising targets into the $34–$42 range.
• Shares trade around $19.87 with a market cap of about $3.15B and negative earnings, and institutional ownership is very high (~92.9%) after large recent purchases by firms including Pictet and T. Rowe Price.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research note issued on Saturday.

Other equities analysts have also issued research reports about the stock. HC Wainwright boosted their price objective on shares of Denali Therapeutics from $32.00 to $42.00 and gave the company a "buy" rating in a research report on Thursday, March 26th. UBS Group began coverage on shares of Denali Therapeutics in a research report on Wednesday, January 7th. They issued a "buy" rating for the company. BTIG Research boosted their price objective on shares of Denali Therapeutics from $36.00 to $38.00 and gave the company a "buy" rating in a research report on Wednesday, March 25th. Robert W. Baird boosted their price objective on shares of Denali Therapeutics from $32.00 to $34.00 and gave the company an "outperform" rating in a research report on Tuesday, April 7th. Finally, Stifel Nicolaus boosted their price objective on shares of Denali Therapeutics from $34.00 to $41.00 and gave the company a "buy" rating in a research report on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $35.00.

Denali Therapeutics Stock Performance

NASDAQ:DNLI opened at $19.87 on Friday. The firm has a 50 day simple moving average of $20.26 and a 200-day simple moving average of $18.64. The company has a debt-to-equity ratio of 0.01, a current ratio of 9.16 and a quick ratio of 9.16. The firm has a market cap of $3.15 billion, a PE ratio of -6.69 and a beta of 1.10. Denali Therapeutics has a 1-year low of $12.58 and a 1-year high of $23.77.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.73) earnings per share for the quarter, beating analysts' consensus estimates of ($0.75) by $0.02. During the same quarter last year, the business posted ($0.67) earnings per share. On average, equities analysts expect that Denali Therapeutics will post -2.86 EPS for the current year.

Institutional Investors Weigh In On Denali Therapeutics

A number of institutional investors have recently bought and sold shares of the stock. Pictet Asset Management Holding SA grew its holdings in Denali Therapeutics by 92.5% in the first quarter. Pictet Asset Management Holding SA now owns 2,558,865 shares of the company's stock valued at $48,439,000 after purchasing an additional 1,229,757 shares during the period. Contravisory Investment Management Inc. purchased a new stake in Denali Therapeutics in the first quarter valued at approximately $277,000. Groupama Asset Managment grew its holdings in Denali Therapeutics by 11.7% in the fourth quarter. Groupama Asset Managment now owns 151,591 shares of the company's stock valued at $2,503,000 after purchasing an additional 15,833 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in Denali Therapeutics by 28.7% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 7,254,132 shares of the company's stock valued at $119,766,000 after purchasing an additional 1,615,565 shares during the period. Finally, Invesco Ltd. grew its holdings in Denali Therapeutics by 17.0% in the fourth quarter. Invesco Ltd. now owns 291,936 shares of the company's stock valued at $4,820,000 after purchasing an additional 42,469 shares during the period. 92.92% of the stock is currently owned by hedge funds and other institutional investors.

About Denali Therapeutics

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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