Denali Therapeutics (NASDAQ:DNLI) Stock Price Down 4.5% - What's Next?

Key Points

• Denali Therapeutics (NASDAQ:DNLI) experienced a 4.5% drop in share price, closing at $13.55 amidst lower trading volume, significantly down from its average.
• A recent analyst report shows that while some firms have downgraded their price targets, others maintain a strong positive outlook, with an average rating of "Buy" and a consensus target price of $33.50.
• Insider activity includes CEO Ryan J. Watts selling a significant number of shares, indicating a 66.18% decrease in his holdings, raising concerns about insider sentiment.

Denali Therapeutics Inc. (NASDAQ:DNLI - Get Free Report)'s stock price fell 4.5% during mid-day trading on Monday . The stock traded as low as $13.57 and last traded at $13.55. 425,648 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 1,474,354 shares. The stock had previously closed at $14.19.

Analysts Set New Price Targets

Several research firms have issued reports on DNLI. TD Cowen upgraded Denali Therapeutics to a "strong-buy" rating in a research report on Monday, July 28th. Morgan Stanley dropped their price target on Denali Therapeutics from $33.00 to $30.00 and set an "overweight" rating for the company in a research report on Monday, August 18th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of Denali Therapeutics in a research report on Monday, September 8th. Three 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, Denali Therapeutics presently has a consensus rating of "Buy" and an average price target of $33.50.

Denali Therapeutics Trading Up 0.4%

The business has a 50 day moving average of $14.51 and a 200 day moving average of $14.34. The firm has a market cap of $1.92 billion, a price-to-earnings ratio of -4.71 and a beta of 1.23. The company has a quick ratio of 10.27, a current ratio of 10.27 and a debt-to-equity ratio of 0.01.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last released its earnings results on Monday, August 11th. The company reported ($0.72) earnings per share for the quarter, topping the consensus estimate of ($0.74) by $0.02. During the same period in the previous year, the company earned ($0.59) EPS. On average, research analysts forecast that Denali Therapeutics Inc. will post -2.71 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Ryan J. Watts sold 495,282 shares of Denali Therapeutics stock in a transaction dated Wednesday, July 9th. The stock was sold at an average price of $15.00, for a total value of $7,429,230.00. Following the transaction, the chief executive officer directly owned 253,071 shares of the company's stock, valued at $3,796,065. The trade was a 66.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Alexander O. Schuth sold 2,937 shares of Denali Therapeutics stock in a transaction dated 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 transaction, the insider directly owned 242,346 shares in the company, valued at $3,291,058.68. This represents a 1.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 501,962 shares of company stock worth $7,520,799. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Denali Therapeutics

Several hedge funds and other institutional investors have recently modified their holdings of the company. Wellington Management Group LLP lifted its stake in shares of Denali Therapeutics by 15.9% in the 1st 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 in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Denali Therapeutics by 88.9% in the 1st 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 in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Denali Therapeutics by 42.8% in the 1st 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 in the last quarter. Norges Bank purchased a new stake in shares of Denali Therapeutics during the 2nd quarter valued at about $55,224,000. Finally, Geode Capital Management LLC raised its holdings in shares of Denali Therapeutics by 4.4% during the 2nd quarter. Geode Capital Management LLC now owns 3,172,305 shares of the company's stock valued at $44,386,000 after buying an additional 135,129 shares during the period. 92.92% of the stock is owned by institutional investors and hedge funds.

About Denali Therapeutics

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.