Wedbush Lifts 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 upped their FY2025 earnings per share (EPS) estimates for shares of Denali Therapeutics in a report released on Tuesday, August 12th. Wedbush analyst L. Chico now anticipates that the company will post earnings of ($3.13) per share for the year, up from their previous estimate of ($3.17). Wedbush currently has a "Outperform" rating and a $30.00 target price 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.

Several other analysts also recently weighed in on DNLI. William Blair raised shares of Denali Therapeutics to a "strong-buy" rating in a research note on Thursday, April 24th. Robert W. Baird lowered their price target on shares of Denali Therapeutics from $30.00 to $29.00 and set an "outperform" rating on the stock in a report on Thursday, May 8th. Bank of America reduced their price objective on shares of Denali Therapeutics from $28.00 to $27.00 and set a "buy" rating for the company in a research note on Monday, May 19th. HC Wainwright lowered their target price on shares of Denali Therapeutics from $80.00 to $32.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. Finally, Morgan Stanley reduced their price target on Denali Therapeutics from $33.00 to $30.00 and set an "overweight" rating on the stock in a research report on Monday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $33.62.

Denali Therapeutics Trading Down 0.1%

NASDAQ:DNLI traded down $0.01 during mid-day trading on Friday, hitting $14.81. 974,998 shares of the stock traded hands, compared to its average volume of 1,751,786. The company has a quick ratio of 10.27, a current ratio of 10.27 and a debt-to-equity ratio of 0.01. The firm's 50 day moving average is $14.29 and its two-hundred day moving average is $15.19. Denali Therapeutics has a 52 week low of $10.57 and a 52 week high of $33.33. The stock has a market capitalization of $2.17 billion, a price-to-earnings ratio of -5.29 and a beta of 1.36.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last posted 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 prior year, the firm posted ($0.59) EPS.

Insider Activity at Denali Therapeutics

In related 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 completion of the transaction, the chief executive officer owned 253,071 shares in the company, valued at $3,796,065. The trade was a 66.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Alexander O. Schuth sold 2,937 shares of the company's stock in a transaction that occurred 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 transaction, the insider directly owned 242,346 shares of the company's stock, valued at approximately $3,291,058.68. The trade was a 1.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 501,962 shares of company stock worth $7,520,799. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Sterling Capital Management LLC increased its stake in Denali Therapeutics by 589.9% during the 4th quarter. Sterling Capital Management LLC now owns 1,773 shares of the company's stock worth $36,000 after buying an additional 1,516 shares in the last quarter. Headlands Technologies LLC acquired a new position in Denali Therapeutics in the 2nd quarter valued at $26,000. State of Wyoming purchased a new position in Denali Therapeutics in the 2nd quarter valued at $29,000. Caitong International Asset Management Co. Ltd lifted its holdings in Denali Therapeutics by 277.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 2,111 shares of the company's stock valued at $29,000 after purchasing an additional 1,551 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Denali Therapeutics during the 1st quarter worth $41,000. Institutional investors and hedge funds own 92.92% of the company's stock.

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.