Wedbush Boosts Earnings Estimates for Denali Therapeutics

Key Points

• Wedbush has revised its FY2025 earnings per share (EPS) estimate for Denali Therapeutics to ($3.13), up from a previous forecast of ($3.17), while maintaining an "Outperform" rating and a price target of $30.00.
• Denali Therapeutics reported a quarterly EPS of ($0.72), exceeding expectations of ($0.74), though it is lower than last year's ($0.59) EPS.
• Institutional investors currently own 92.92% of Denali Therapeutics' stock, indicating strong institutional interest in the company.

Denali Therapeutics Inc. (NASDAQ:DNLI - Free Report) - Stock analysts at Wedbush raised their FY2025 earnings per share (EPS) estimates for Denali Therapeutics in a research note issued on Tuesday, August 12th. Wedbush analyst L. Chico now anticipates that the company will earn ($3.13) per share for the year, up from their previous forecast of ($3.17). Wedbush has a "Outperform" rating and a $30.00 price target on the stock. The consensus estimate for Denali Therapeutics' current full-year earnings is ($2.71) per share. Wedbush also issued estimates for Denali Therapeutics' FY2027 earnings at ($2.76) EPS.

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 (EPS) for the quarter, topping the consensus estimate of ($0.74) by $0.02. During the same period in the prior year, the firm posted ($0.59) earnings per share.

DNLI has been the topic of several other research reports. TD Cowen raised Denali Therapeutics to a "strong-buy" rating in a research report on Monday, July 28th. HC Wainwright dropped their target price on Denali Therapeutics from $80.00 to $32.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Bank of America dropped their target price on Denali Therapeutics from $28.00 to $27.00 and set a "buy" rating on the stock in a research report on Monday, May 19th. Robert W. Baird dropped their target price on Denali Therapeutics from $30.00 to $29.00 and set an "outperform" rating on the stock in a research report on Thursday, May 8th. Finally, William Blair raised Denali Therapeutics to a "strong-buy" rating in a research report on Thursday, April 24th. Three equities 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, Denali Therapeutics has a consensus rating of "Buy" and a consensus price target of $33.62.

Denali Therapeutics Trading Down 2.0%

NASDAQ:DNLI traded down $0.30 during midday trading on Friday, hitting $14.51. The stock had a trading volume of 1,425,445 shares, compared to its average volume of 1,407,680. Denali Therapeutics has a one year low of $10.57 and a one year high of $33.33. The company has a market capitalization of $2.12 billion, a price-to-earnings ratio of -5.18 and a beta of 1.36. The stock has a 50-day moving average of $14.29 and a 200 day moving average of $15.19. The company has a quick ratio of 10.27, a current ratio of 10.27 and a debt-to-equity ratio of 0.01.

Insider Transactions at Denali Therapeutics

In other news, insider Carole Ho sold 2,937 shares of the firm's stock in a transaction on 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 sale, the insider owned 217,391 shares of the company's stock, valued at $2,952,169.78. This trade represents a 1.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Alexander O. Schuth sold 2,937 shares of the firm's stock in a transaction on 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 sale, the insider directly owned 242,346 shares of the company's stock, valued at $3,291,058.68. The trade was a 1.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold 501,962 shares of company stock valued at $7,520,799 in the last quarter. 12.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Denali Therapeutics

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP lifted its position in Denali Therapeutics by 15.9% during the 1st quarter. Wellington Management Group LLP now owns 11,409,598 shares of the company's stock worth $155,113,000 after acquiring an additional 1,561,647 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Denali Therapeutics by 88.9% during 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 worth $91,996,000 after acquiring an additional 3,184,042 shares during the period. Price T Rowe Associates Inc. MD lifted its position in Denali Therapeutics by 42.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,367,234 shares of the company's stock worth $59,373,000 after acquiring an additional 1,308,619 shares during the period. Norges Bank acquired a new stake in Denali Therapeutics during the 2nd quarter worth about $55,224,000. Finally, Geode Capital Management LLC lifted its position in Denali Therapeutics by 4.4% during the 2nd quarter. Geode Capital Management LLC now owns 3,172,305 shares of the company's stock worth $44,386,000 after acquiring an additional 135,129 shares during the period. Institutional investors and hedge funds own 92.92% of the company's stock.

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.