Denali Therapeutics (NASDAQ:DNLI) Trading Down 6.6% – Should You Sell?

Denali Therapeutics Inc. (NASDAQ:DNLI)’s stock price fell 6.6% on Friday . The stock traded as low as $25.25 and last traded at $25.4010. 618,243 shares changed hands during trading, a decline of 65% from the average session volume of 1,777,727 shares. The stock had previously closed at $27.21.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Denali Therapeutics in a report on Monday, April 20th. Stifel Nicolaus set a $41.00 price target on shares of Denali Therapeutics in a report on Monday, June 22nd. HC Wainwright upped their price objective on shares of Denali Therapeutics from $32.00 to $42.00 and gave the stock a “buy” rating in a research report on Thursday, March 26th. Robert W. Baird increased their price objective on shares of Denali Therapeutics from $32.00 to $34.00 and gave the company an “outperform” rating in a research note on Tuesday, April 7th. Finally, BTIG Research restated a “buy” rating and issued a $39.00 target price on shares of Denali Therapeutics in a research note on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Denali Therapeutics presently has an average rating of “Moderate Buy” and an average price target of $34.25.

Denali Therapeutics Stock Down 5.6%

The stock’s fifty day moving average is $21.79 and its two-hundred day moving average is $20.36. The company has a current ratio of 9.28, a quick ratio of 9.28 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $4.08 billion, a PE ratio of -8.92 and a beta of 0.96.

Denali Therapeutics (NASDAQ:DNLI) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.69) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.73) by $0.04. During the same quarter in the previous year, the company posted ($0.78) EPS. As a group, analysts predict that Denali Therapeutics Inc. will post -2.77 EPS for the current year.

Institutional Investors Weigh In On Denali Therapeutics

A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in Denali Therapeutics by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,057,890 shares of the company’s stock valued at $215,586,000 after purchasing an additional 1,064,972 shares during the period. Baillie Gifford & Co. raised its stake in shares of Denali Therapeutics by 6.2% in the fourth quarter. Baillie Gifford & Co. now owns 12,310,889 shares of the company’s stock valued at $203,253,000 after buying an additional 719,304 shares during the period. T. Rowe Price Investment Management Inc. raised its stake in shares of Denali Therapeutics by 28.7% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 7,254,132 shares of the company’s stock valued at $119,766,000 after buying an additional 1,615,565 shares during the period. Temasek Holdings Private Ltd lifted its position in shares of Denali Therapeutics by 30.9% during the 4th quarter. Temasek Holdings Private Ltd now owns 7,012,974 shares of the company’s stock valued at $115,784,000 after buying an additional 1,657,142 shares during the last quarter. Finally, State Street Corp grew its stake in shares of Denali Therapeutics by 14.6% during the 4th quarter. State Street Corp now owns 6,263,371 shares of the company’s stock worth $103,408,000 after acquiring an additional 799,110 shares during the period. 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.