Denali Therapeutics (NASDAQ:DNLI) Shares Down 10.1% on Disappointing Earnings

Denali Therapeutics Inc. (NASDAQ:DNLI) shares traded down 10.1% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $14.41 and last traded at $14.38. 525,609 shares changed hands during trading, a decline of 52% from the average session volume of 1,084,610 shares. The stock had previously closed at $15.99.

The company reported ($0.78) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.71) by ($0.07). During the same period in the previous year, the company earned ($0.68) earnings per share.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on DNLI. Deutsche Bank Aktiengesellschaft began coverage on shares of Denali Therapeutics in a research report on Tuesday, February 11th. They set a “buy” rating and a $31.00 price objective on the stock. Morgan Stanley started coverage on shares of Denali Therapeutics in a report on Friday, March 7th. They issued an “overweight” rating and a $33.00 price target on the stock. Baird R W raised shares of Denali Therapeutics to a “strong-buy” rating in a report on Tuesday, January 7th. Robert W. Baird started coverage on Denali Therapeutics in a report on Tuesday, January 7th. They issued an “outperform” rating and a $31.00 target price on the stock. Finally, William Blair raised Denali Therapeutics to a “strong-buy” rating in a research note on Thursday, April 24th. One investment analyst has rated the stock with a hold rating, fourteen have assigned a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Denali Therapeutics currently has a consensus rating of “Buy” and a consensus target price of $37.57.

Institutional Investors Weigh In On Denali Therapeutics

A number of institutional investors and hedge funds have recently modified their holdings of DNLI. KLP Kapitalforvaltning AS purchased a new stake in shares of Denali Therapeutics in the fourth quarter worth about $532,000. Proficio Capital Partners LLC purchased a new stake in shares of Denali Therapeutics during the fourth quarter worth $514,000. JPMorgan Chase & Co. grew its stake in Denali Therapeutics by 6.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 235,386 shares of the company’s stock valued at $6,857,000 after acquiring an additional 14,324 shares in the last quarter. Principal Financial Group Inc. grew its position in shares of Denali Therapeutics by 13.8% in the third quarter. Principal Financial Group Inc. now owns 1,238,476 shares of the company’s stock valued at $36,076,000 after purchasing an additional 149,939 shares in the last quarter. Finally, Vanguard Group Inc. grew its holdings in Denali Therapeutics by 7.6% in the 4th quarter. Vanguard Group Inc. now owns 12,021,230 shares of the company’s stock valued at $244,993,000 after buying an additional 843,996 shares in the last quarter. Institutional investors and hedge funds own 92.92% of the company’s stock.

Denali Therapeutics Stock Down 12.6 %

The company’s 50-day moving average is $14.36 and its 200-day moving average is $20.28. The stock has a market capitalization of $2.03 billion, a price-to-earnings ratio of -5.06 and a beta of 1.49.

Denali Therapeutics Company Profile

Denali Therapeutics Inc, a biopharmaceutical company, develops a portfolio of product candidates engineered to cross the blood-brain barrier for neurodegenerative diseases and lysosomal storage diseases in the United States. The company’s transport vehicle (TV)-enabled programs include DNL310 ETV, an IDS enzyme replacement therapy program for MPS II; TAK-594/DNL593 which is in Phase 1/II for frontotemporal dementia-granulin; DNL126 program for MPS IIIA; and DNL622 for MPS I, as well as other preclinical programs that target amyloid beta and HER2.