HC Wainwright Issues Positive Forecast for DNLI Earnings

Key Points

• HC Wainwright nudged near‑term EPS forecasts slightly higher for 2026 (Q1 now ($0.72) vs prior ($0.73)) and lifted FY2026 to ($2.94) from ($2.99), but cut several mid/longer‑term estimates (FY2027–FY2029), signaling a more cautious view on the timing of sustained profitability.
• Denali recently topped the quarter's consensus (reported ($0.73) vs. ($0.75) expected), the stock trades around $20.37 with a $3.23B market cap, and analysts hold a consensus rating of Moderate Buy with an average price target of $32.20.
• Insider selling (including the CEO) reduced executive holdings in January, while major institutional investors materially increased positions—insiders own about 12.5% and institutions own roughly 92.9% of the shares.

Denali Therapeutics Inc. (NASDAQ:DNLI - Free Report) - Equities research analysts at HC Wainwright increased their Q1 2026 EPS estimates for Denali Therapeutics in a research note issued to investors on Monday, March 2nd. HC Wainwright analyst A. Fein now anticipates that the company will post earnings per share of ($0.72) for the quarter, up from their previous estimate of ($0.73). The consensus estimate for Denali Therapeutics' current full-year earnings is ($2.71) per share. HC Wainwright also issued estimates for Denali Therapeutics' Q2 2026 earnings at ($0.72) EPS, Q3 2026 earnings at ($0.75) EPS, Q4 2026 earnings at ($0.75) EPS, FY2026 earnings at ($2.94) EPS, FY2027 earnings at ($1.52) EPS, FY2028 earnings at ($0.41) EPS, FY2029 earnings at $0.76 EPS and FY2030 earnings at $2.03 EPS.

Denali Therapeutics (NASDAQ:DNLI - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.73) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.75) by $0.02. During the same period in the previous year, the company earned ($0.67) earnings per share.

A number of other equities research analysts have also recently commented on DNLI. Wedbush decreased their target price on shares of Denali Therapeutics from $31.00 to $30.00 and set an "outperform" rating on the stock in a research note on Thursday, December 11th. Stifel Nicolaus set a $37.00 target price on shares of Denali Therapeutics in a report on Monday, November 17th. Weiss Ratings restated a "sell (d-)" rating on shares of Denali Therapeutics in a research report on Wednesday, January 21st. BTIG Research increased their target price on Denali Therapeutics from $32.00 to $36.00 and gave the stock a "buy" rating in a research report on Monday. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $40.00 price target on shares of Denali Therapeutics in a report on Monday. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $32.20.

Denali Therapeutics Price Performance

Shares of NASDAQ:DNLI opened at $20.37 on Thursday. The company has a quick ratio of 9.16, a current ratio of 9.16 and a debt-to-equity ratio of 0.01. Denali Therapeutics has a twelve month low of $10.57 and a twelve month high of $23.77. The stock has a market capitalization of $3.23 billion, a PE ratio of -6.86 and a beta of 1.02. The firm's 50 day moving average price is $19.29 and its 200-day moving average price is $17.23.

Insider Transactions at Denali Therapeutics

In other news, insider Alexander O. Schuth sold 17,218 shares of the company's stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $16.50, for a total transaction of $284,097.00. Following the sale, the insider directly owned 282,828 shares in the company, valued at approximately $4,666,662. This represents a 5.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ryan J. Watts sold 35,198 shares of the business's stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $16.50, for a total value of $580,767.00. Following the sale, the chief executive officer directly owned 296,833 shares in the company, valued at $4,897,744.50. The trade was a 10.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of DNLI. Vanguard Group Inc. boosted its stake in shares of Denali Therapeutics by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,057,890 shares of the company's stock worth $215,586,000 after purchasing an additional 1,064,972 shares during the period. Baillie Gifford & Co. lifted its stake in Denali Therapeutics by 6.2% in the fourth quarter. Baillie Gifford & Co. now owns 12,310,889 shares of the company's stock worth $203,253,000 after purchasing an additional 719,304 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its position in shares of Denali Therapeutics by 28.7% during 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 buying an additional 1,615,565 shares during the period. Temasek Holdings Private Ltd grew its stake in shares of Denali Therapeutics by 30.9% during the fourth quarter. Temasek Holdings Private Ltd now owns 7,012,974 shares of the company's stock valued at $115,784,000 after buying an additional 1,657,142 shares during the last quarter. Finally, State Street Corp raised its holdings 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 buying an additional 799,110 shares during the period. Institutional investors own 92.92% of the company's stock.

Denali Therapeutics News Roundup

Here are the key news stories impacting Denali Therapeutics this week:

• Positive Sentiment: HC Wainwright raised near‑term EPS forecasts for Denali, trimming losses for Q1–Q4 2026 and lifting FY2026 slightly (e.g., FY2026 now projected at ($2.94) vs. prior ($2.99)). The tweaks suggest modestly improved near‑term profitability expectations, which can support the stock. HC Wainwright estimate changes
• Positive Sentiment: BTIG published a bullish research note forecasting strong price appreciation for DNLI, which can drive positive sentiment and buying interest from growth/momentum investors. BTIG bullish note
• Neutral Sentiment: Reported short‑interest data shows 0 shares and a 0.0 days short‑interest ratio — likely a reporting anomaly or immaterial reading given heavy average volume; this appears not to be a meaningful driver of price action today.
• Negative Sentiment: HC Wainwright cut several mid/longer‑term estimates: FY2027 moved lower (to ($1.52) from ($1.43)), FY2028 worse (to ($0.41) from ($0.15)), and FY2029 now projected at $0.76 (down from $0.98). Those reductions signal a more conservative view on the timing and scale of Denali's pathway to sustained profitability, which can cap upside for investors focused on multi‑year outcomes. HC Wainwright estimate changes

Denali Therapeutics Company 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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