Denali Therapeutics (NASDAQ:DNLI) Trading 7.4% Higher - Here's What Happened

Key Points

• Denali Therapeutics' stock rose by 7.4% on Wednesday, reaching a high of $15.20 before closing at $15.59, although trading volume decreased significantly to about 126,913 shares.
• Wall Street analysts maintain a consensus rating of "Buy" for Denali Therapeutics, with a target price of $33.50, bolstered by 3 Strong Buy and 13 Buy ratings.
• Insider activity has increased recently, with key insiders selling a combined 501,962 shares, representing a notable decrease in their ownership percentages.

Denali Therapeutics Inc. (NASDAQ:DNLI - Get Free Report) shares were up 7.4% during trading on Wednesday . The stock traded as high as $15.20 and last traded at $15.59. Approximately 126,913 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 1,534,518 shares. The stock had previously closed at $14.52.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on DNLI shares. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Denali Therapeutics in a research report on Monday, September 8th. Morgan Stanley lowered their price target on shares of Denali Therapeutics from $33.00 to $30.00 and set an "overweight" rating on the stock in a report on Monday, August 18th. Finally, TD Cowen upgraded shares of Denali Therapeutics to a "strong-buy" rating in a research note on Monday, July 28th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $33.50.

Denali Therapeutics Price Performance

The stock's 50 day simple moving average is $14.36 and its 200-day simple moving average is $14.21. The firm has a market cap of $2.27 billion, a price-to-earnings ratio of -5.54 and a beta of 1.23. The company has a debt-to-equity ratio of 0.01, a quick ratio of 10.27 and a current ratio of 10.27.

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

Insider Activity

In other news, insider Alexander O. Schuth sold 2,937 shares of the firm'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 completion of the transaction, the insider directly owned 242,346 shares in the company, valued at $3,291,058.68. This trade represents a 1.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Carole Ho sold 2,937 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $13.58, for a total value of $39,884.46. Following the completion of 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 position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 501,962 shares of company stock valued at $7,520,799. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Denali Therapeutics

Several hedge funds have recently added to or reduced their stakes in DNLI. Wellington Management Group LLP raised its stake in shares of Denali Therapeutics by 15.9% during the 1st quarter. Wellington Management Group LLP now owns 11,409,598 shares of the company's stock valued at $155,113,000 after buying an additional 1,561,647 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings 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 worth $91,996,000 after acquiring an additional 3,184,042 shares during the period. Price T Rowe Associates Inc. MD raised 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 acquiring an additional 1,308,619 shares in the last quarter. Norges Bank acquired a new position in Denali Therapeutics in the second quarter valued at approximately $55,224,000. Finally, Geode Capital Management LLC boosted its position in Denali Therapeutics by 4.4% in the 2nd quarter. Geode Capital Management LLC now owns 3,172,305 shares of the company's stock worth $44,386,000 after purchasing an additional 135,129 shares in the last quarter. 92.92% of the stock is owned by hedge funds and other 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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