Denali Therapeutics (NASDAQ:DNLI) Posts Earnings Results, Misses Estimates By $0.17 EPS

Denali Therapeutics (NASDAQ:DNLI) announced its quarterly earnings results on Thursday. The company reported ($0.68) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.51) by ($0.17), FiscalAI reports. The firm had revenue of $3.60 million during the quarter, compared to analyst estimates of $2.15 million. During the same period in the prior year, the company posted ($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 Trading Up 0.4%

Shares of DNLI traded up $0.10 during trading hours on Friday, hitting $24.83. The stock had a trading volume of 1,749,187 shares, compared to its average volume of 1,757,824. Denali Therapeutics has a 12-month low of $12.58 and a 12-month high of $27.30. The firm has a market cap of $3.94 billion, a P/E ratio of -8.74 and a beta of 1.01. The company has a debt-to-equity ratio of 0.01, a quick ratio of 9.28 and a current ratio of 9.28. The company’s fifty day simple moving average is $23.54 and its 200 day simple moving average is $21.28.

Institutional Trading of Denali Therapeutics

Institutional investors and hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Denali Therapeutics by 4.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 88,507 shares of the company’s stock worth $1,210,000 after buying an additional 3,432 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Denali Therapeutics by 58.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,672,078 shares of the company’s stock valued at $22,732,000 after acquiring an additional 614,555 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of Denali Therapeutics by 11.0% during the 1st quarter. Empowered Funds LLC now owns 20,639 shares of the company’s stock valued at $281,000 after acquiring an additional 2,052 shares in the last quarter. Woodline Partners LP boosted its position in Denali Therapeutics by 13.5% during the 1st quarter. Woodline Partners LP now owns 113,517 shares of the company’s stock worth $1,543,000 after purchasing an additional 13,517 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in Denali Therapeutics by 1.7% during the 2nd quarter. JPMorgan Chase & Co. now owns 191,613 shares of the company’s stock worth $2,681,000 after purchasing an additional 3,210 shares during the period. Institutional investors and hedge funds own 92.92% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on DNLI. Robert W. Baird set a $34.00 price objective on shares of Denali Therapeutics in a research note on Friday. Morgan Stanley lifted their target price on shares of Denali Therapeutics from $35.00 to $36.00 and gave the stock an “overweight” rating in a research report on Thursday, July 23rd. Wedbush reaffirmed an “outperform” rating and issued a $26.00 price target on shares of Denali Therapeutics in a report on Monday, July 13th. BTIG Research reiterated a “buy” rating and issued a $39.00 price target on shares of Denali Therapeutics in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. began coverage on shares of Denali Therapeutics in a research note on Monday, July 13th. They set an “overweight” rating and a $29.00 price objective for the company. Thirteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average 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.