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

Denali Therapeutics Inc. (NASDAQ:DNLI)’s share price gapped down before the market opened on Friday . The stock had previously closed at $19.30, but opened at $18.52. Denali Therapeutics shares last traded at $18.6950, with a volume of 962,854 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on DNLI shares. Deutsche Bank Aktiengesellschaft set a $31.00 target price on shares of Denali Therapeutics in a research report on Friday. HC Wainwright lifted their target price on shares of Denali Therapeutics from $32.00 to $42.00 and gave the company a “buy” rating in a research report on Thursday, March 26th. Morgan Stanley set a $35.00 price target on shares of Denali Therapeutics in a research report on Friday. Leerink Partners reduced their price target on shares of Denali Therapeutics from $40.00 to $35.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 22nd. Finally, Wolfe Research assumed coverage on shares of Denali Therapeutics in a research report on Monday, February 23rd. They issued a “peer perform” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Denali Therapeutics has an average rating of “Moderate Buy” and a consensus price target of $34.25.

Denali Therapeutics Stock Performance

The stock has a market capitalization of $2.96 billion, a price-to-earnings ratio of -6.47 and a beta of 0.99. The company has a quick ratio of 9.28, a current ratio of 9.28 and a debt-to-equity ratio of 0.01. The stock’s 50-day simple moving average is $19.78 and its 200 day simple moving average is $19.05.

Denali Therapeutics (NASDAQ:DNLI) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.69) EPS for the quarter, beating analysts’ consensus estimates of ($0.73) by $0.04. During the same quarter last year, the business earned ($0.78) earnings per share. Analysts expect that Denali Therapeutics Inc. will post -2.74 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Denali Therapeutics

Institutional investors have recently modified their holdings of the stock. Headlands Technologies LLC bought a new position in shares of Denali Therapeutics in the second quarter worth about $26,000. Johnson Financial Group Inc. bought a new position in shares of Denali Therapeutics in the third quarter worth about $29,000. State of Wyoming bought a new position in shares of Denali Therapeutics in the second quarter worth about $29,000. Fifth Third Bancorp bought a new position in shares of Denali Therapeutics in the first quarter worth about $55,000. Finally, Aster Capital Management DIFC Ltd bought a new position in shares of Denali Therapeutics in the fourth quarter worth about $57,000. 92.92% of the stock is owned by institutional investors.

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.