Denali Therapeutics (NASDAQ:DNLI) Given New $42.00 Price Target at Morgan Stanley

Denali Therapeutics (NASDAQ:DNLI) had its price objective raised by Morgan Stanley from $40.00 to $42.00 in a report released on Thursday,Benzinga reports. Morgan Stanley currently has an overweight rating on the stock.

Several other research firms have also recently weighed in on DNLI. 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. Robert W. Baird lifted their target price on Denali Therapeutics from $29.00 to $32.00 and gave the company an “outperform” rating in a research report on Thursday. Wolfe Research started coverage on Denali Therapeutics in a research note on Monday, February 23rd. They issued a “peer perform” rating on the stock. BTIG Research upped their price target on Denali Therapeutics from $36.00 to $38.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Denali Therapeutics in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $34.82.

Denali Therapeutics Trading Down 12.1%

DNLI opened at $19.74 on Thursday. The stock has a market capitalization of $3.13 billion, a P/E ratio of -6.65 and a beta of 1.02. Denali Therapeutics has a 12 month low of $10.57 and a 12 month high of $23.77. The firm’s fifty day simple moving average is $20.43 and its 200 day simple moving average is $17.81. The company has a current ratio of 9.16, a quick ratio of 9.16 and a debt-to-equity ratio of 0.01.

Denali Therapeutics (NASDAQ:DNLI) last released its earnings results on Thursday, February 26th. The company reported ($0.73) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.75) by $0.02. During the same period in the prior year, the firm posted ($0.67) EPS. As a group, research analysts anticipate that Denali Therapeutics will post -2.71 EPS for the current fiscal year.

Insider Transactions at Denali Therapeutics

In related news, insider Alexander O. Schuth sold 17,218 shares of the stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $16.50, for a total transaction of $284,097.00. Following the completion of the transaction, the insider directly owned 282,828 shares of the company’s stock, valued at approximately $4,666,662. This represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Ryan J. Watts sold 35,198 shares of the firm’s stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $16.50, for a total value of $580,767.00. Following the completion of the transaction, the chief executive officer owned 296,833 shares of the company’s stock, valued at approximately $4,897,744.50. This represents a 10.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Denali Therapeutics

Large investors have recently made changes to their positions in the stock. Foresite Capital Management VI LLC bought a new stake in Denali Therapeutics during the third quarter worth $14,520,000. AlphaQuest LLC grew its position in shares of Denali Therapeutics by 224.1% in the 3rd quarter. AlphaQuest LLC now owns 74,422 shares of the company’s stock valued at $1,081,000 after acquiring an additional 51,458 shares during the period. Aberdeen Group plc increased its stake in shares of Denali Therapeutics by 23.4% during the 3rd quarter. Aberdeen Group plc now owns 1,113,586 shares of the company’s stock worth $16,169,000 after purchasing an additional 210,835 shares during the last quarter. Principal Financial Group Inc. increased its stake in shares of Denali Therapeutics by 18.5% during the 3rd quarter. Principal Financial Group Inc. now owns 1,271,190 shares of the company’s stock worth $18,458,000 after purchasing an additional 198,207 shares during the last quarter. Finally, Holocene Advisors LP raised its holdings in shares of Denali Therapeutics by 677.8% in the 3rd quarter. Holocene Advisors LP now owns 3,135,712 shares of the company’s stock valued at $45,531,000 after purchasing an additional 2,732,540 shares during the period. Institutional investors and hedge funds own 92.92% of the company’s stock.

Key Headlines Impacting Denali Therapeutics

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

• Positive Sentiment: FDA accelerated approval of AVLAYAH (tividenofusp alfa‑eknm), Denali’s first commercial drug and the first transferrin‑receptor (brain‑penetrant) biologic for Hunter syndrome; approval includes a Rare Pediatric Disease PRV and Denali is launching U.S. commercialization and patient support services. GlobeNewswire: DNLI FDA Approval Zacks: Denali Wins FDA Nod
• Positive Sentiment: Multiple brokerages boosted price targets and ratings today (Morgan Stanley to $42/overweight; Goldman Sachs to $40/buy; Stifel to $41/buy; BTIG, HC Wainwright, Baird also raised targets), signaling strong analyst conviction about AVLAYAH’s commercial and platform upside. Benzinga: Analyst Coverage Roundup
• Neutral Sentiment: Management hosted/announced a conference call and webcast to discuss approval and launch plans; an investor webcast and Seeking Alpha transcript provide additional color on commercialization timing, pricing strategy and the COMPASS confirmatory trial. Seeking Alpha: AVLAYAH Launch Transcript
• Negative Sentiment: The FDA approval is accelerated and based on a biomarker (CSF heparan sulfate); continued approval may be contingent on confirmatory Phase 2/3 COMPASS trial results — this creates execution and regulatory risk that could weigh on the stock if confirmatory data are delayed or mixed. GlobeNewswire: Approval Details & Risks
• Negative Sentiment: Reports show recent insider sales and significant institutional portfolio moves (large reductions by some funds reported), which can create near‑term supply pressure and headline risk despite the approval. QuiverQuant: Insider & Institutional Activity

Denali Therapeutics Company Profile

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.