HC Wainwright Initiates Coverage on Denali Therapeutics (NASDAQ:DNLI)

HC Wainwright began coverage on shares of Denali Therapeutics (NASDAQ:DNLI) in a research note issued to investors on Wednesday, Zacks reports. The brokerage set a “strong-buy” rating on the stock. HC Wainwright also issued estimates for Denali Therapeutics’ Q4 2026 earnings at ($0.62) EPS, FY2026 earnings at ($1.61) EPS, Q1 2027 earnings at ($0.60) EPS, Q2 2027 earnings at ($0.59) EPS, Q3 2027 earnings at ($0.57) EPS, Q4 2027 earnings at ($0.53) EPS, FY2027 earnings at ($2.38) EPS, FY2028 earnings at ($1.77) EPS, FY2029 earnings at ($1.51) EPS and FY2030 earnings at ($0.14) EPS.

A number of other analysts have also issued reports on DNLI. Wall Street Zen upgraded Denali Therapeutics from a “sell” rating to a “hold” rating in a report on Saturday, October 24th. Robert W. Baird set a $34.00 price target on Denali Therapeutics in a research report on Friday, August 7th. BTIG Research reissued a “buy” rating and issued a $39.00 price objective on shares of Denali Therapeutics in a research note on Wednesday. Deutsche Bank Aktiengesellschaft increased their price objective on Denali Therapeutics from $31.00 to $35.00 and gave the stock a “buy” rating in a research note on Thursday, July 16th. Finally, Morgan Stanley raised their price objective on Denali Therapeutics from $40.00 to $42.00 and gave the stock an “overweight” rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $36.15.

Denali Therapeutics Trading Down 5.9%

Denali Therapeutics stock opened at $19.72 on Wednesday. The company has a 50 day moving average price of $20.25 and a 200 day moving average price of $21.26. Denali Therapeutics has a 52 week low of $13.75 and a 52 week high of $27.30. The company has a debt-to-equity ratio of 0.01, a quick ratio of 8.32 and a current ratio of 6.21. The firm has a market capitalization of $3.16 billion, a price-to-earnings ratio of -11.40 and a beta of 1.08.

Denali Therapeutics (NASDAQ:DNLI) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of ($0.27) by $0.64. The firm had revenue of $17.78 million for the quarter, compared to analysts’ expectations of $12.67 million. During the same quarter in the previous year, the firm posted ($0.74) earnings per share. Research analysts forecast that Denali Therapeutics will post -2.70 EPS for the current year.

Insider Buying and Selling at Denali Therapeutics

In other news, insider Alexander O. Schuth sold 2,857 shares of the company’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $25.07, for a total value of $71,624.99. Following the transaction, the insider directly owned 281,763 shares of the company’s stock, valued at approximately $7,063,798.41. This represents a 1.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 9.70% of the company’s stock.

Institutional Investors Weigh In On Denali Therapeutics

Large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Denali Therapeutics during the 2nd quarter valued at about $360,759,000. Dimensional Fund Advisors LP raised its holdings in Denali Therapeutics by 13.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,692,175 shares of the company’s stock worth $51,687,000 after acquiring an additional 317,872 shares during the period. ADAR1 Capital Management LLC raised its holdings in Denali Therapeutics by 3,490.9% in the 1st quarter. ADAR1 Capital Management LLC now owns 1,871,455 shares of the company’s stock worth $35,932,000 after acquiring an additional 1,819,339 shares during the period. Defilade Capital Management L.P. lifted its position in Denali Therapeutics by 107.1% during the 1st quarter. Defilade Capital Management L.P. now owns 1,359,969 shares of the company’s stock worth $26,111,000 after acquiring an additional 703,256 shares during the last quarter. Finally, Bank of America Corp DE acquired a new position in Denali Therapeutics during the 2nd quarter worth $31,660,000. Institutional investors own 92.92% of the company’s stock.

Denali Therapeutics News Roundup

Here are the key news stories impacting Denali Therapeutics this week:

• Positive Sentiment: Denali’s Q3 earnings beat expectations, while Avlayah sales reportedly rose nearly fivefold and reimbursement coverage expanded. The company also has several pipeline catalysts approaching, giving investors reasons to focus on future growth. Zacks article
• Positive Sentiment: Morgan Stanley raised its price target to $42 and maintained an Overweight rating; Wedbush also lifted its target, to $24, with an Outperform rating. These target increases suggest those analysts see potential upside. Analyst target report
• Neutral Sentiment: HC Wainwright’s estimates project ongoing losses in the coming years, including a $0.62-per-share loss in Q4 2026, but a narrower $0.14 loss in 2030. These are analyst forecasts, not company results, and indicate that a path toward profitability may take time.
• Negative Sentiment: Despite the earnings beat, investors may weigh Denali’s continuing expected losses and valuation against its commercial growth and pipeline prospects. Yahoo Finance article

Denali Therapeutics Company Profile

Denali Therapeutics Inc is a biopharmaceutical company focused on discovering and developing therapies for patients with neurodegenerative diseases. The company’s research programs target conditions including Parkinson’s disease, Alzheimer’s disease, amyotrophic lateral sclerosis, and lysosomal storage disorders.

Denali uses its blood-brain barrier transport technology, known as the Transport Vehicle platform, to design medicines intended to deliver therapeutic proteins and other biologic treatments into the central nervous system.