BlackRock Inc. Takes Position in Denali Therapeutics Inc. $DNLI

Key Points

• BlackRock acquired 14.03 million Denali Therapeutics shares worth approximately $360.8 million, giving it an 8.84% stake. Institutional investors collectively own 92.92% of DNLI.
• Denali reported a quarterly loss of $0.68 per share, missing the consensus estimate of a $0.51 loss, while revenue of $3.6 million exceeded expectations.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $35.85, compared with shares opening at $24.93.

BlackRock Inc. bought a new stake in Denali Therapeutics Inc. (NASDAQ:DNLI - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 14,026,413 shares of the company's stock, valued at approximately $360,759,000. BlackRock Inc. owned about 8.84% of Denali Therapeutics at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in Denali Therapeutics by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,057,890 shares of the company's stock valued at $215,586,000 after buying an additional 1,064,972 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Denali Therapeutics by 28.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 7,254,132 shares of the company's stock worth $119,766,000 after acquiring an additional 1,615,565 shares during the period. Temasek Holdings Private Ltd lifted its holdings in shares of Denali Therapeutics by 30.9% during the 4th quarter. Temasek Holdings Private Ltd now owns 7,012,974 shares of the company's stock worth $115,784,000 after acquiring an additional 1,657,142 shares during the period. State Street Corp boosted its position in shares of Denali Therapeutics by 14.6% in the fourth quarter. State Street Corp now owns 6,263,371 shares of the company's stock worth $103,408,000 after acquiring an additional 799,110 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Denali Therapeutics in the fourth quarter worth approximately $84,525,000. 92.92% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, insider Alexander O. Schuth sold 2,857 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $25.07, for a total value of $71,624.99. Following the completion of the sale, the insider directly owned 281,763 shares in the company, valued at approximately $7,063,798.41. This represents a 1.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 9.70% of the company's stock.

Denali Therapeutics Trading Up 3.0%

Shares of DNLI stock opened at $24.93 on Wednesday. The company has a quick ratio of 8.32, a current ratio of 8.37 and a debt-to-equity ratio of 0.01. Denali Therapeutics Inc. has a fifty-two week low of $12.58 and a fifty-two week high of $27.30. The firm's 50 day moving average price is $24.55 and its two-hundred day moving average price is $21.64. The stock has a market cap of $3.99 billion, a price-to-earnings ratio of -8.78 and a beta of 1.01.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.68) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.51) by ($0.17). The firm had revenue of $3.60 million for the quarter, compared to the consensus estimate of $2.15 million. During the same period in the prior year, the firm earned ($0.72) earnings per share. On average, analysts anticipate that Denali Therapeutics Inc. will post -2.59 EPS for the current year.

Analysts Set New Price Targets

DNLI has been the subject of several research analyst reports. BTIG Research reaffirmed a "buy" rating and set a $39.00 price target on shares of Denali Therapeutics in a research report on Monday, May 11th. Stifel Nicolaus set a $41.00 price target on shares of Denali Therapeutics in a report on Monday, June 22nd. Wedbush reissued an "outperform" rating and set a $26.00 price objective on shares of Denali Therapeutics in a research note on Monday, July 13th. Sanford C. Bernstein restated a "hold" rating on shares of Denali Therapeutics in a report on Monday, June 22nd. Finally, Morgan Stanley upped their price objective on Denali Therapeutics from $35.00 to $36.00 and gave the stock an "overweight" rating in a report on Thursday, July 23rd. Fourteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $35.85.

Denali Therapeutics Profile

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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