Leerink Partnrs Issues Negative Forecast for DNLI Earnings

Key Points

• Leerink Partnrs has revised its Q4 2025 earnings per share estimate for Denali Therapeutics to ($0.82), reflecting a slight decrease from the previous estimate of ($0.80).
• The company reported ($0.72) EPS in its last quarterly earnings, surpassing analysts' expectations but showing a decline from the prior year's EPS of ($0.59).
• Despite recent price target reductions from various analysts, the stock maintains a consensus rating of "Buy" and an average price target of $33.85.

Denali Therapeutics Inc. (NASDAQ:DNLI - Free Report) - Research analysts at Leerink Partnrs lowered their Q4 2025 EPS estimates for Denali Therapeutics in a research report issued to clients and investors on Tuesday, August 12th. Leerink Partnrs analyst M. Goodman now forecasts that the company will post earnings per share of ($0.82) for the quarter, down from their previous estimate of ($0.80). The consensus estimate for Denali Therapeutics' current full-year earnings is ($2.71) per share. Leerink Partnrs also issued estimates for Denali Therapeutics' FY2026 earnings at ($2.25) EPS, FY2027 earnings at ($2.40) EPS, FY2028 earnings at $0.55 EPS and FY2029 earnings at $0.70 EPS.

Other equities research analysts have also issued reports about the stock. William Blair upgraded shares of Denali Therapeutics to a "strong-buy" rating in a report on Thursday, April 24th. TD Cowen raised shares of Denali Therapeutics to a "strong-buy" rating in a research report on Monday, July 28th. Robert W. Baird lowered their price objective on shares of Denali Therapeutics from $30.00 to $29.00 and set an "outperform" rating for the company in a research report on Thursday, May 8th. Bank of America lowered 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 report on Monday, May 19th. Finally, Wedbush lowered their price objective on shares of Denali Therapeutics from $32.00 to $30.00 and set an "outperform" rating for the company in a research report on Wednesday, May 7th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Denali Therapeutics presently has an average rating of "Buy" and an average price target of $33.62.

Denali Therapeutics Trading Down 2.0%

DNLI traded down $0.30 during mid-day trading on Friday, hitting $14.51. The stock had a trading volume of 1,425,496 shares, compared to its average volume of 1,410,326. The stock's fifty day simple moving average is $14.29 and its 200-day simple moving average is $15.19. The company has a debt-to-equity ratio of 0.01, a current ratio of 10.27 and a quick ratio of 10.27. The firm has a market capitalization of $2.12 billion, a price-to-earnings ratio of -5.18 and a beta of 1.36. Denali Therapeutics has a 1-year low of $10.57 and a 1-year high of $33.33.

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

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Denali Therapeutics during the second quarter worth $55,224,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Denali Therapeutics by 88.9% in 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 valued at $91,996,000 after acquiring an additional 3,184,042 shares during the period. Wellington Management Group LLP grew its position in shares of Denali Therapeutics by 15.9% in the 1st quarter. Wellington Management Group LLP now owns 11,409,598 shares of the company's stock valued at $155,113,000 after acquiring an additional 1,561,647 shares during the period. Price T Rowe Associates Inc. MD grew its position in shares of Denali Therapeutics by 42.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,367,234 shares of the company's stock valued at $59,373,000 after acquiring an additional 1,308,619 shares during the period. Finally, Millennium Management LLC grew its position in shares of Denali Therapeutics by 269.4% in the 1st quarter. Millennium Management LLC now owns 1,493,068 shares of the company's stock valued at $20,298,000 after acquiring an additional 1,088,844 shares during the period. Institutional investors own 92.92% of the company's stock.

Insider Activity at Denali Therapeutics

In related news, CEO Ryan J. Watts sold 495,282 shares of the firm's stock in a transaction on Wednesday, July 9th. The shares were 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 of the company's stock, valued at approximately $3,796,065. This trade represents a 66.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 shares were sold at an average price of $13.58, for a total transaction of $39,884.46. Following the completion of the transaction, the insider directly owned 242,346 shares of the company's stock, valued at approximately $3,291,058.68. This trade represents a 1.20% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 501,962 shares of company stock valued at $7,520,799. Corporate insiders own 12.50% 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.