Denali Therapeutics (NASDAQ:DNLI) Shares Down 8.1% – Should You Sell?

Denali Therapeutics Inc. (NASDAQ:DNLI) shares dropped 8.1% during trading on Wednesday . The stock traded as low as $18.50 and last traded at $18.4450. Approximately 1,203,236 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 1,676,639 shares. The stock had previously closed at $20.06.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Morgan Stanley raised their price target on Denali Therapeutics from $40.00 to $42.00 and gave the stock an “overweight” rating in a research report on Thursday, March 26th. Stifel Nicolaus lifted their target price on shares of Denali Therapeutics from $34.00 to $41.00 and gave the stock a “buy” rating in a research note on Thursday, March 26th. UBS Group initiated coverage on shares of Denali Therapeutics in a research report on Wednesday, January 7th. They set a “buy” rating for the company. Leerink Partners cut their price target on shares of Denali Therapeutics from $40.00 to $35.00 and set an “outperform” rating on the stock in a report on Wednesday, April 22nd. Finally, BTIG Research upped their price objective on shares of Denali Therapeutics from $36.00 to $38.00 and gave the company a “buy” rating in a research note on Wednesday, March 25th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $35.00.

Denali Therapeutics Trading Down 2.2%

The company has a quick ratio of 9.16, a current ratio of 9.16 and a debt-to-equity ratio of 0.01. The firm’s fifty day moving average is $20.26 and its two-hundred day moving average is $18.75. The firm has a market cap of $2.90 billion, a P/E ratio of -6.16 and a beta of 1.10.

Denali Therapeutics (NASDAQ:DNLI) last posted its earnings results on Thursday, February 26th. The company reported ($0.73) EPS for the quarter, topping the consensus estimate of ($0.75) by $0.02. During the same quarter in the previous year, the firm earned ($0.67) earnings per share. Analysts predict that Denali Therapeutics Inc. will post -2.86 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in DNLI. Headlands Technologies LLC bought a new stake in shares of Denali Therapeutics during the second quarter valued at approximately $26,000. Johnson Financial Group Inc. bought a new stake in shares of Denali Therapeutics during the 3rd quarter valued at $29,000. State of Wyoming purchased a new stake in shares of Denali Therapeutics in the 2nd quarter worth about $29,000. Aster Capital Management DIFC Ltd bought a new position in shares of Denali Therapeutics in the 4th quarter worth about $57,000. Finally, Quarry LP purchased a new position in Denali Therapeutics during the 3rd quarter valued at about $64,000. Institutional investors own 92.92% of the company’s stock.

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.