Denali Therapeutics (NASDAQ:DNLI) Trading Down 8.1% - What's Next?

Key Points

• Shares plunged 8.1% midday to about $18.45 (low $18.50) on roughly 1.2M shares, down 28% from average session volume and off a prior close of $20.06.
• Analysts show a consensus of Moderate Buy with an average price target of $35, amid mixed recent moves (Goldman raised its PT to $40 while Leerink trimmed theirs to $35).
• Denali is a clinical‑stage neurodegenerative biotech with a $2.94B market cap, strong liquidity (current and quick ratios ~9.16) but negative EPS (beat last quarter at -$0.73; FY estimate -2.86), and heavy institutional ownership (~92.9%) with sizable recent additions from Norges Bank, Temasek, T. Rowe Price and others.

Denali Therapeutics Inc. (NASDAQ:DNLI - Get Free Report)'s share price traded down 8.1% during mid-day trading on Wednesday . The company traded as low as $18.50 and last traded at $18.4450. 1,203,236 shares were traded during trading, a decline of 28% from the average session volume of 1,676,639 shares. The stock had previously closed at $20.06.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. UBS Group initiated coverage on Denali Therapeutics in a research note on Wednesday, January 7th. They issued a "buy" rating for the company. Leerink Partners decreased their price target on Denali Therapeutics from $40.00 to $35.00 and set an "outperform" rating on the stock in a report on Wednesday, April 22nd. The Goldman Sachs Group raised their price target on Denali Therapeutics from $35.00 to $40.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. Wolfe Research started coverage on shares of Denali Therapeutics in a research report on Monday, February 23rd. They set a "peer perform" rating on the stock. Finally, BTIG Research increased their target price on shares of Denali Therapeutics from $36.00 to $38.00 and gave the company a "buy" rating in a research note on Wednesday, March 25th. 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 stock. Based on data from MarketBeat.com, Denali Therapeutics has a consensus rating of "Moderate Buy" and an average price target of $35.00.

Denali Therapeutics Stock Performance

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 stock has a market capitalization of $2.94 billion, a PE ratio of -6.24 and a beta of 1.10. The firm has a fifty day moving average price of $20.30 and a two-hundred day moving average price of $18.75.

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 (EPS) for the quarter, beating analysts' consensus estimates of ($0.75) by $0.02. During the same period in the previous year, the firm posted ($0.67) EPS. Research analysts expect that Denali Therapeutics Inc. will post -2.86 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new stake in Denali Therapeutics during the 4th quarter valued at about $84,525,000. Holocene Advisors LP increased its position in shares of Denali Therapeutics by 677.8% during the third quarter. Holocene Advisors LP now owns 3,135,712 shares of the company's stock worth $45,531,000 after acquiring an additional 2,732,540 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Denali Therapeutics by 77.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,835,803 shares of the company's stock valued at $63,329,000 after acquiring an additional 1,672,098 shares in the last quarter. Temasek Holdings Private Ltd boosted its holdings in shares of Denali Therapeutics by 30.9% in the fourth quarter. Temasek Holdings Private Ltd now owns 7,012,974 shares of the company's stock valued at $115,784,000 after purchasing an additional 1,657,142 shares during the period. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in shares of 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. Hedge funds and other institutional investors own 92.92% of the company's stock.

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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