Denali Therapeutics Set for Growth with $40.22 Target Price

Quick Look:

• Analyst Ratings: Denali Therapeutics holds a “Moderate Buy” with an average target price of $40.22.
• Stock Metrics: Currently at $22.63, the market cap of $3.23B, a PE ratio of -23.57, and a beta of 1.37.
• Earnings: The latest EPS is -$0.68, slightly above the estimate of -$0.69, with a net margin of -36.51%.
• Insider Activity: Directors Cook and Krognes sold shares, with significant transactions noted.

Denali Therapeutics, listed on NASDAQ under the ticker DNLI, has been drawing significant attention from the financial community. The company, known for its innovative work in treating neurological diseases, has earned a “Moderate Buy” consensus rating from nine analysts. Eight of these recommend buying the stock, while one advises holding it. The average target price from these analysts is $40.22, suggesting notable potential for appreciation from its current trading level.

Goldman Sachs Lowers Denali’s Target Price from $73 to $50

The recent evaluations from major financial institutions reveal a blend of cautious optimism and adjusted expectations for Denali Therapeutics. On February 29, 2023, the Goldman Sachs Group lowered its target price from $73.00 to $50.00, maintaining a “Buy” rating. Subsequently, on May 8, 2023, Stifel Nicolaus revised their price objective from $26.00 to $22.00 while keeping a “Hold” rating. Wedbush made a minor adjustment on the same day, reducing their price objective from $31.00 to $30.00, and retained their “Outperform” rating. On May 8, 2023, HC Wainwright reaffirmed their optimistic target price of $95.00 and a “Buy” rating. Earlier, on April 9, 2023, UBS Group dropped their price target significantly from $70.00 to $32.00 but continued to support a “Buy” rating.

Denali Trading at $22.63 with Market Cap of $3.23 Billion

Currently, Denali Therapeutics is trading at $22.63. The company’s market capitalization stands at $3.23 billion, with a price-to-earnings (PE) ratio of -23.57, reflecting the company’s current unprofitability. The stock exhibits a beta of 1.37, indicating higher volatility compared to the market. In terms of moving averages, the 50-day average is $18.88, while the 200-day average is $19.16. Over the past year, the stock has seen a low of $14.56 and a high of $31.03, showcasing a wide range of price movements.

Denali Reports EPS of -$0.68, Beats Estimate by $0.01

In its latest earnings report dated May 7, 2023, Denali Therapeutics reported an earnings per share (EPS) of -$0.68, slightly better than the consensus estimate of -$0.69. The company reported a net margin of -36.51% and a return on equity of -11.46%. These figures represent an improvement over the previous year’s EPS of -$0.80. However, the current year’s EPS estimate stands at -$2.78, indicating ongoing financial challenges.

Insider Activity: Directors Cook and Krognes Sell Shares

Insider activity has also been noteworthy. On June 6, 2023, Jennifer E. Cook, a director at the company, sold 1,458 shares at an average price of $21.73, amounting to a transaction value of $31,682.34. After this sale, she retains ownership of 20,038 shares. Another director, Steve E. Krognes, sold 92,500 shares on April 1, 2023, at an average price of $20.50, totaling $1,896,250.00. Post-transaction, Krognes holds 47,341 shares.

Institutional Activity: Wellington Management Holds $150.37M in Denali Shares

Institutional activity reveals robust interest in Denali Therapeutics. Wellington Management Group LLP increased its holdings by 3.6%, now owning 7,288,960 shares valued at $150.37 million. Edmond DE Rothschild Holding S.A. raised its position by 65.9%, holding 165,680 shares worth $3.555 million. Pathway Capital Management LP acquired a new position valued at $1.49 million, while Gotham Asset Management LLC also took a new stake worth $400,000. Eventide Asset Management LLC significantly increased its stake by 98.4%, now holding 621,850 shares valued at $12.829 million.