Denali Therapeutics (NASDAQ:DNLI) Shares Gap Down – What’s Next?

Denali Therapeutics Inc. (NASDAQ:DNLI) shares 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.

Analyst Ratings Changes

Several equities research analysts recently weighed in on DNLI shares. 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. Jefferies Financial Group reaffirmed a “buy” rating and set a $40.00 price objective on shares of Denali Therapeutics in a research report on Monday, March 2nd. Wall Street Zen raised shares of Denali Therapeutics from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 9th. Leerink Partners cut their price objective on shares of Denali Therapeutics from $40.00 to $35.00 and set an “outperform” rating for the company in a research report on Wednesday, April 22nd. Finally, Morgan Stanley dropped their target price on shares of Denali Therapeutics from $42.00 to $40.00 and set an “overweight” rating for the company in a report on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Denali Therapeutics has an average rating of “Moderate Buy” and an average target price of $34.67.

Denali Therapeutics Price Performance

The stock has a market cap of $3.01 billion, a P/E ratio of -6.59 and a beta of 0.99. The company has a debt-to-equity ratio of 0.01, a current ratio of 9.28 and a quick ratio of 9.28. The business’s fifty day moving average price is $19.84 and its 200 day moving average price is $19.05.

Denali Therapeutics (NASDAQ:DNLI) last posted its earnings results on Thursday, May 7th. The company reported ($0.69) EPS for the quarter, topping analysts’ consensus estimates of ($0.73) by $0.04. During the same quarter in the prior year, the firm posted ($0.78) earnings per share. Sell-side analysts forecast that Denali Therapeutics Inc. will post -2.74 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in Denali Therapeutics by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,057,890 shares of the company’s stock valued at $215,586,000 after buying an additional 1,064,972 shares during the last quarter. Baillie Gifford & Co. raised its holdings in Denali Therapeutics by 6.2% in the 4th 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 last quarter. T. Rowe Price Investment Management Inc. raised its holdings in Denali Therapeutics by 28.7% in the 4th 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 last quarter. Temasek Holdings Private Ltd raised its holdings in Denali Therapeutics by 30.9% in 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 raised its holdings in Denali Therapeutics by 14.6% in the 4th quarter. State Street Corp now owns 6,263,371 shares of the company’s stock valued at $103,408,000 after buying an additional 799,110 shares during the last quarter. Institutional investors own 92.92% of the company’s stock.

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.