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

Shares of Denali Therapeutics Inc. (NASDAQ:DNLI) gapped up before the market opened 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 traded.

Other research analysts have also recently issued research reports about the company. Stifel Nicolaus raised their price target on Denali Therapeutics from $34.00 to $41.00 and gave the stock a “buy” rating in a research report on Thursday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Denali Therapeutics in a research report on Wednesday, January 21st. BTIG Research raised their target price on shares of Denali Therapeutics from $36.00 to $38.00 and gave the company a “buy” rating in a report on Wednesday. Wedbush dropped their target price on shares of Denali Therapeutics from $31.00 to $30.00 and set an “outperform” rating for the company in a research report on Thursday, December 11th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $40.00 price target on shares of Denali Therapeutics in a report on Monday, March 2nd. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Denali Therapeutics presently has a consensus rating of “Moderate Buy” and an average target price of $34.82.

Insider Buying and Selling at Denali Therapeutics

In other Denali Therapeutics news, insider Alexander O. Schuth sold 17,218 shares of the business’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $16.50, for a total transaction of $284,097.00. Following the completion of the transaction, the insider owned 282,828 shares of the company’s stock, valued at approximately $4,666,662. The trade was a 5.74% decrease in their ownership of the stock. The sale was disclosed in a legal 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 stock in a transaction dated 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 SEC filing for this sale provides additional information. 12.50% of the stock is owned by corporate insiders.

More Denali Therapeutics News

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

Institutional Trading of Denali Therapeutics

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

Denali Therapeutics Price Performance

The company’s 50 day moving average price is $20.43 and its 200-day moving average price is $17.81. The stock has a market cap of $3.13 billion, a P/E ratio of -6.65 and a beta of 1.02. 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 (NASDAQ:DNLI) last issued its quarterly earnings data on Thursday, February 26th. The company reported ($0.73) earnings per share for the quarter, topping the consensus estimate of ($0.75) by $0.02. During the same quarter in the prior year, the firm posted ($0.67) earnings per share. As a group, sell-side analysts expect 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.