Denali Therapeutics (NASDAQ:DNLI) Announces Quarterly Earnings Results

Denali Therapeutics (NASDAQ:DNLI) announced its earnings results on Thursday. The company reported ($0.68) EPS for the quarter, missing the consensus estimate of ($0.51) by ($0.17), FiscalAI reports. The business had revenue of $3.60 million for the quarter, compared to analysts’ expectations of $2.15 million. During the same quarter in the prior year, the business earned ($0.72) EPS.

Here are the key takeaways from Denali Therapeutics’ conference call:

• AVLAYAH generated $3.6 million in net product revenue during its first full commercial quarter, with commercial payer coverage exceeding 50% of covered lives. Denali expects Q3 revenue of $10 million–$12 million as access expands and more patients transition to treatment.
• Early launch indicators were stronger than anticipated, including high physician and family engagement and demand extending beyond the initially expected group of highly engaged families. Denali estimates roughly 375 U.S. pediatric patients are currently eligible, with additional opportunity from newly diagnosed children.
• Denali strengthened its balance sheet with $195 million from the sale of its Priority Review Voucher, bringing pro forma cash, cash equivalents, and marketable securities to more than $1.1 billion. Management said the capital supports AVLAYAH commercialization, pipeline development, manufacturing investments, and potential strategic flexibility.
• Two blood-brain-barrier Transport Vehicle programs for Alzheimer’s disease advanced into clinical development: DNL628, a tau antisense oligonucleotide, and DNL921, an anti-amyloid antibody. Initial biomarker and safety or proof-of-concept data are expected in 2027.
• Denali pushed DNL593 data to the first half of 2027, from an earlier expectation of year-end 2026, to obtain longer-term follow-up—particularly for neurofilament light-chain and other biomarkers—and assess a potential accelerated-approval strategy.

Denali Therapeutics Stock Up 0.4%

Shares of NASDAQ DNLI traded up $0.10 during mid-day trading on Friday, hitting $24.83. The company had a trading volume of 1,749,187 shares, compared to its average volume of 1,757,824. The company has a current ratio of 9.28, a quick ratio of 9.28 and a debt-to-equity ratio of 0.01. The firm has a 50-day simple moving average of $23.54 and a two-hundred day simple moving average of $21.28. The company has a market capitalization of $3.94 billion, a PE ratio of -8.74 and a beta of 1.01. Denali Therapeutics has a one year low of $12.58 and a one year high of $27.30.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. grew its stake in shares of Denali Therapeutics by 77.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,835,803 shares of the company’s stock valued at $63,329,000 after buying an additional 1,672,098 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its stake 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 purchasing an additional 1,615,565 shares during the last quarter. UBS Group AG grew its holdings in Denali Therapeutics by 111.7% during the third quarter. UBS Group AG now owns 2,012,353 shares of the company’s stock worth $29,219,000 after purchasing an additional 1,061,589 shares during the period. Alyeska Investment Group L.P. bought a new position in Denali Therapeutics during the fourth quarter worth about $14,184,000. Finally, State Street Corp increased its position in Denali Therapeutics by 14.6% during the fourth quarter. State Street Corp now owns 6,263,371 shares of the company’s stock worth $103,408,000 after buying an additional 799,110 shares during the last quarter. 92.92% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research firms have issued reports on DNLI. Leerink Partners dropped their price target on Denali Therapeutics from $40.00 to $35.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 22nd. Stifel Nicolaus set a $41.00 price objective on Denali Therapeutics in a research report on Monday, June 22nd. Weiss Ratings reissued a “sell (d-)” rating on shares of Denali Therapeutics in a research report on Friday, July 17th. Sanford C. Bernstein restated a “hold” rating on shares of Denali Therapeutics in a research note on Monday, June 22nd. Finally, Morgan Stanley upped their price target on Denali Therapeutics from $35.00 to $36.00 and gave the stock an “overweight” rating in a research report on Thursday, July 23rd. Thirteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $35.92.

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.