HC Wainwright Issues Pessimistic Forecast for DNLI Earnings

Key Points

• HC Wainwright has revised its **FY2025 earnings per share (EPS)** estimate for Denali Therapeutics to **($2.91)**, down from a previous estimate of **($2.87)**, while maintaining a **Buy rating** and a **$32.00 price target**.
• The company reported a quarterly earnings result of **($0.72) EPS**, which beat the consensus estimate of **($0.74)**.
• Recent insider trading activity showed CEO Ryan J. Watts sold **495,282 shares**, indicating a **66.18% decrease** in his ownership stake in Denali Therapeutics.

Denali Therapeutics Inc. (NASDAQ:DNLI - Free Report) - Investment analysts at HC Wainwright lowered their FY2025 earnings per share (EPS) estimates for shares of Denali Therapeutics in a research report issued on Tuesday, August 12th. HC Wainwright analyst A. Fein now anticipates that the company will earn ($2.91) per share for the year, down from their previous forecast of ($2.87). HC Wainwright has a "Buy" rating and a $32.00 price target on the stock. The consensus estimate for Denali Therapeutics' current full-year earnings is ($2.71) per share. HC Wainwright also issued estimates for Denali Therapeutics' FY2026 earnings at ($2.43) EPS and FY2027 earnings at ($1.09) EPS.

A number of other equities research analysts have also weighed in on DNLI. Morgan Stanley dropped their price objective on shares of Denali Therapeutics from $33.00 to $30.00 and set an "overweight" rating on the stock in a report on Monday. Bank of America dropped their price target on Denali Therapeutics from $28.00 to $27.00 and set a "buy" rating on the stock in a research note on Monday, May 19th. William Blair raised Denali Therapeutics to a "strong-buy" rating in a report on Thursday, April 24th. Wedbush decreased their target price on Denali Therapeutics from $32.00 to $30.00 and set an "outperform" rating for the company in a report on Wednesday, May 7th. Finally, TD Cowen upgraded shares of Denali Therapeutics to a "strong-buy" rating in a report on Monday, July 28th. One equities research analyst has rated the stock with a hold rating, thirteen have given a buy rating and three have issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $33.62.

Denali Therapeutics Stock Performance

Denali Therapeutics stock traded up $0.12 during mid-day trading on Friday, reaching $14.82. 1,266,220 shares of the company traded hands, compared to its average volume of 1,746,503. The firm's fifty day moving average is $14.30 and its two-hundred day moving average is $15.19. The company has a market capitalization of $2.17 billion, a price-to-earnings ratio of -5.29 and a beta of 1.36. Denali Therapeutics has a fifty-two week low of $10.57 and a fifty-two week high of $33.33. The company has a debt-to-equity ratio of 0.01, a current ratio of 10.27 and a quick ratio of 10.27.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last released its earnings results on Monday, August 11th. The company reported ($0.72) EPS for the quarter, topping analysts' consensus estimates of ($0.74) by $0.02. During the same quarter last year, the firm earned ($0.59) earnings per share.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Hudson Bay Capital Management LP increased its holdings in Denali Therapeutics by 16.0% in the 2nd quarter. Hudson Bay Capital Management LP now owns 290,000 shares of the company's stock worth $4,057,000 after acquiring an additional 40,000 shares in the last quarter. Caxton Associates LLP acquired a new stake in shares of Denali Therapeutics in the second quarter valued at about $199,000. Headlands Technologies LLC purchased a new stake in shares of Denali Therapeutics during the second quarter worth about $26,000. Tower Research Capital LLC TRC raised its position in shares of Denali Therapeutics by 325.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 13,669 shares of the company's stock worth $191,000 after purchasing an additional 10,457 shares during the last quarter. Finally, E Fund Management Co. Ltd. raised its position in shares of Denali Therapeutics by 12.8% during the 2nd quarter. E Fund Management Co. Ltd. now owns 13,612 shares of the company's stock worth $190,000 after purchasing an additional 1,543 shares during the last quarter. Hedge funds and other institutional investors own 92.92% of the company's stock.

Insider Activity

In other Denali Therapeutics news, insider Alexander O. Schuth sold 2,937 shares of the company's 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 owned 242,346 shares in the company, valued at approximately $3,291,058.68. This represents a 1.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Carole Ho sold 2,937 shares of the company's stock in a transaction dated 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 transaction, the insider directly owned 217,391 shares of the company's stock, valued at $2,952,169.78. The trade was a 1.33% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 501,962 shares of company stock valued at $7,520,799 in the last three months. 12.50% of the stock is currently owned by corporate insiders.

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.