Denali Therapeutics Inc. (NASDAQ:DNLI) has received an average rating of “Buy” from a group of seventeen analysts currently covering the company, according to MarketBeat. Among these analysts, one has issued a sell recommendation, while thirteen have assigned a buy rating and three have designated a strong buy rating. The consensus twelve-month price target stands at $33.50, reflecting a positive outlook for the biopharmaceutical firm.
Recent Analyst Ratings and Price Targets
Several equity research analysts have recently weighed in on Denali’s stock. On July 28, 2023, TD Cowen upgraded Denali Therapeutics to a “strong-buy” rating, indicating increased confidence in the company’s future performance. In a research note dated September 8, 2023, Cantor Fitzgerald reiterated an “overweight” rating, suggesting that analysts expect the stock to outperform the market. Conversely, Weiss Ratings reaffirmed a “sell (d-)” rating on October 8, 2023, highlighting some skepticism regarding the stock’s prospects. Furthermore, Morgan Stanley adjusted its price target from $33.00 to $30.00, while maintaining an “overweight” rating in a report released on August 18, 2023.
Denali Therapeutics announced its earnings results on August 11, 2023, reporting an earnings per share (EPS) of ($0.72), which surpassed the consensus estimate of ($0.74) by $0.02. This performance marks a decline from the previous year’s EPS of ($0.59). Analysts project that Denali will post an EPS of ($2.71) for the current fiscal year, reflecting ongoing challenges within the company.
Insider Trading Activity
Recent insider trading activity has also drawn attention. On August 12, 2023, Alexander O. Schuth, an insider at Denali Therapeutics, sold 2,937 shares at an average price of $13.58, generating a total value of $39,884.46. Following this transaction, Schuth holds 242,346 shares, valued at approximately $3,291,058.68, indicating a 1.20% decrease in ownership.
In a separate transaction on the same day, insider Carole Ho sold 2,937 shares for the same average price, resulting in a total sale of $39,884.46. After this trade, Ho directly owns 217,391 shares, valued at about $2,952,169.78, reflecting a 1.33% decrease in their ownership stake. In total, insiders sold 6,680 shares during the last quarter, worth $91,569. Currently, insiders hold 12.50% of Denali’s stock.
Institutional investors have also been active in modifying their holdings in Denali Therapeutics. Mirae Asset Global Investments Co. Ltd. increased its stake by 15.5% during the second quarter, now owning 5,612 shares valued at $79,000. Additionally, Ameritas Investment Partners Inc. raised its position by 7.4%, holding 13,522 shares worth $189,000. Other notable changes include Knights of Columbus Asset Advisors LLC boosting its position by 2.7%, while E Fund Management Co. Ltd. increased its stake by 12.8% during the same period. A significant 92.92% of Denali’s stock is currently owned by institutional investors.
Denali Therapeutics is a biopharmaceutical company focused on developing therapies designed to cross the blood-brain barrier for treating neurodegenerative and lysosomal storage diseases. Its product candidates include DNL310 ETV, TAK-594/DNL593 in Phase 1/II for frontotemporal dementia, and other promising programs targeting amyloid beta and HER2.
Investors and analysts will continue to monitor Denali Therapeutics as it navigates the challenges of the biopharmaceutical landscape, with its upcoming developments likely to influence market sentiment and stock performance moving forward.
