Denali Therapeutics (NASDAQ:DNLI) Shares Gap Up After Analyst Upgrade

Shares of Denali Therapeutics Inc. (NASDAQ:DNLI) gapped up prior to trading on Wednesday after Morgan Stanley raised their price target on the stock from $40.00 to $42.00. The stock had previously closed at $20.97, but opened at $22.62. Morgan Stanley currently has an overweight rating on the stock. Denali Therapeutics shares last traded at $22.7450, with a volume of 1,158,462 shares trading hands.

Other equities analysts have also recently issued reports about the stock. UBS Group began coverage on shares of Denali Therapeutics in a research report on Wednesday, January 7th. They set a “buy” rating for the company. Wolfe Research initiated coverage on shares of Denali Therapeutics in a research note on Monday, February 23rd. They set a “peer perform” rating on the stock. The Goldman Sachs Group increased their price target on Denali Therapeutics from $35.00 to $40.00 and gave the company a “buy” rating in a research note on Thursday. Jefferies Financial Group reissued a “buy” rating and set a $40.00 price objective on shares of Denali Therapeutics in a report on Monday, March 2nd. Finally, Wedbush reduced their price objective on Denali Therapeutics from $31.00 to $30.00 and set an “outperform” rating on the stock in a research report on Thursday, December 11th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $34.82.

Insiders Place Their Bets

In related news, CEO Ryan J. Watts sold 35,198 shares of the firm’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $16.50, for a total transaction of $580,767.00. Following the completion of the transaction, the chief executive officer directly owned 296,833 shares of the company’s stock, valued at $4,897,744.50. This trade represents a 10.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Alexander O. Schuth sold 17,218 shares of the firm’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $16.50, for a total value of $284,097.00. Following the transaction, the insider directly owned 282,828 shares of the company’s stock, valued at approximately $4,666,662. This represents a 5.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 12.50% of the stock is currently owned by insiders.

Trending Headlines about Denali Therapeutics

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

• Positive Sentiment: FDA accelerated approval of AVLAYAH (tividenofusp alfa‑eknm), Denali’s first commercial drug and the first transferrin‑receptor (brain‑penetrant) biologic for Hunter syndrome; approval includes a Rare Pediatric Disease PRV and Denali is launching U.S. commercialization and patient support services. GlobeNewswire: DNLI FDA Approval Zacks: Denali Wins FDA Nod
• Positive Sentiment: Multiple brokerages boosted price targets and ratings today (Morgan Stanley to $42/overweight; Goldman Sachs to $40/buy; Stifel to $41/buy; BTIG, HC Wainwright, Baird also raised targets), signaling strong analyst conviction about AVLAYAH’s commercial and platform upside. Benzinga: Analyst Coverage Roundup
• Neutral Sentiment: Management hosted/announced a conference call and webcast to discuss approval and launch plans; an investor webcast and Seeking Alpha transcript provide additional color on commercialization timing, pricing strategy and the COMPASS confirmatory trial. Seeking Alpha: AVLAYAH Launch Transcript
• Negative Sentiment: The FDA approval is accelerated and based on a biomarker (CSF heparan sulfate); continued approval may be contingent on confirmatory Phase 2/3 COMPASS trial results — this creates execution and regulatory risk that could weigh on the stock if confirmatory data are delayed or mixed. GlobeNewswire: Approval Details & Risks
• Negative Sentiment: Reports show recent insider sales and significant institutional portfolio moves (large reductions by some funds reported), which can create near‑term supply pressure and headline risk despite the approval. QuiverQuant: Insider & Institutional Activity

Hedge Funds Weigh In On Denali Therapeutics

A number of hedge funds have recently made changes to their positions in the stock. Foresite Capital Management VI LLC acquired a new position in shares of Denali Therapeutics in the 3rd quarter worth approximately $14,520,000. AlphaQuest LLC increased its position in shares of Denali Therapeutics by 224.1% during the third quarter. AlphaQuest LLC now owns 74,422 shares of the company’s stock worth $1,081,000 after buying an additional 51,458 shares during the period. Aberdeen Group plc increased its position in shares of Denali Therapeutics by 23.4% during the third quarter. Aberdeen Group plc now owns 1,113,586 shares of the company’s stock worth $16,169,000 after buying an additional 210,835 shares during the period. Principal Financial Group Inc. raised its stake in Denali Therapeutics by 18.5% during the third quarter. Principal Financial Group Inc. now owns 1,271,190 shares of the company’s stock worth $18,458,000 after buying an additional 198,207 shares during the last quarter. Finally, Holocene Advisors LP raised its stake in Denali Therapeutics by 677.8% during the third quarter. Holocene Advisors LP now owns 3,135,712 shares of the company’s stock worth $45,531,000 after buying an additional 2,732,540 shares during the last quarter. 92.92% of the stock is currently owned by institutional investors.

Denali Therapeutics Trading Down 12.1%

The company has a debt-to-equity ratio of 0.01, a current ratio of 9.16 and a quick ratio of 9.16. The firm has a market cap of $3.13 billion, a price-to-earnings ratio of -6.65 and a beta of 1.02. The firm’s fifty day moving average is $20.43 and its 200-day moving average is $17.81.

Denali Therapeutics (NASDAQ:DNLI) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.73) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.75) by $0.02. During the same period last year, the company earned ($0.67) EPS. Equities analysts anticipate that Denali Therapeutics Inc. will post -2.71 earnings per share for the current year.

About Denali Therapeutics

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.