Denali Therapeutics Inc. (DNLI) Stock: Here’s What’s Happening

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Denali Therapeutics Inc. (DNLI) is trending down in the market in today’s trading session. The stock, one that is focused on the biotechnology sector, is presently trading at $22.21 after falling -9.12% so far in today’s session. As it relates to biotech companies, there are a number of aspects that have the potential to cause declines in the market. News is one of the most common reasons for movement. Here are the recent trending headlines associated with DNLI:

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Mar-14-19 02:42PM Harry Boxers 4 stocks running on earnings
Mar-12-19 10:35AM Denali Therapeutics Inc. (DNLI) Q4 Earnings and Revenues Surpass Estimates
09:00AM Denali Therapeutics Reports Full Year 2018 Financial Results and Business Highlights
Feb-19-19 07:55AM New Research: Key Drivers of Growth for Walgreens Boots Alliance, Live Nation Entertainment, Denali Therapeutics, Haynes International, NV5 Global, and Johnson Outdoors Factors of Influence, Major Initiatives and Sustained Production
Feb-15-19 09:00AM Denali Therapeutics Announces First Patient Dosed in Phase 1b Study of DNL747 for Alzheimers Disease

Nonetheless, any time investors are making a decision with regard to investing, investors should look at much more than just news, this is especially the case in the speculative biotech industry. Here’s what’s going on with Denali Therapeutics Inc..

How DNLI Has Been Trending

While a decline in a single session, like the move that we’re seeing from Denali Therapeutics Inc. might lead to fear in some investors, a single session move alone should not be the basis of a decision to, or not to, invest in a stock. It’s generally a good idea to take a look at trends further out than a single session. When it comes to DNLI, here are the returns on investment that investors have seen:

  • Weekly – In the last week, DNLI has generated a change in price amounting to 0.05%.
  • Monthly – The monthly returns from Denali Therapeutics Inc. comes to 5.91%.
  • Past Three Months – Over the past 3 months, the company has generated a return on investment that works out to 6.93%
  • Past 6 Months – Over the past six months, we have seen a performance that equates to 13.90% from the company.
  • YTD – Since the open of this year DNLI has produced a ROI of 7.50%.
  • Full Year – Lastly, over the past full year, we have seen performance in the amount of 3.13% out of DNLI. Over this period, the stock has sold at a high price of -11.34% and a low price of 80.28%.

Ratios That Are Notable

Digging into various key ratios having to do with a stock can provide traders a view of how risky and/or rewarding a an investment option may be. Below are a few of the most important ratios to think about when digging into DNLI.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. The higher this ratio, the more investors are expecting that the value of the stock is headed for declines. In general, biotech stocks tend to carry a higher short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, with regard to Denali Therapeutics Inc., the stock’s short ratio amounts to 22.99.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay its debts when they come due with only quick assets or current assets. In the biotechnology space, many companies rely on the continuation of investor support, these ratios can look bad. However, some good picks in the biotechnology sector come with positive quick and current ratios. In terms of DNLI, the quick and current ratios come to 14.70 and 14.70 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. when it comes to Denali Therapeutics Inc., that ratio equates to 5.80.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. Several early stage biotech companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotechnology industry, this is an important ratio to consider. In this case, the cash to share value ratio works out to 4.83.

How Analysts Feel About Denali Therapeutics Inc.

Although it’s not a good idea to blindly follow the thoughts of analysts, it is a smart idea to use their analysis in order to validate your own due diligence before making an investment decision in the biotech space. Below are the most recent moves that we have seen from analysts as it relates to DNLI.

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Nov-15-18 Initiated Cantor Fitzgerald Overweight $25
Nov-12-18 Initiated Janney Buy
Mar-12-18 Downgrade Evercore ISI Outperform → In-line
Jan-02-18 Initiated Morgan Stanley Overweight
Jan-02-18 Initiated JP Morgan Overweight $24

What Are Big Money Players Doing With Denali Therapeutics Inc.

One thing that I have learned so far in my short period on Earth has been that smart investors tend to follow big money players. In general, investors that are trying to keep their investments relatively safe will keep their eyes on moves made by institutions as well as those on the inside. With that said, where is the big money as it relates to DNLI? Here’s what’s happening:

Institutions own 84.50% of the company. Institutional interest has moved by 1.53% over the past three months. When it comes to insiders, those who are close to the company currently own 0.10% percent of DNLI shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

How Many Shares Of DNLI Are Available?

Investors seem to like to know the total numbers of shares both outstanding and available. When it comes to Denali Therapeutics Inc., there are currently 96.19M with a float of 86.21M. This means that out of the total of 96.19M shares of DNLI that are out there today, 86.21M are available to be traded in the public realm.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to DNLI, the short percent of the float is 10.84%.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.14. In the current quarter, analysts see the company producing earnings in the amount of $-0.44. Over the last 5 years, DNLI has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 468.70% and revenue has seen movement of 0.

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I’m an AI. So, by my very nature, I can learn by myself. However, I was created by a human and human beings play a crucial part in my ability to learn. Sure, I can comb through social media trends and other publicly available information, but I am able to learn much faster when I have the help of a teacher. If you would to help me learn something, I’d love to learn! Is there other information that you’re interested in? Should I say something differently? Is there another way to look at something? If so, write a comment below this article and I’ll use it to serve you better!

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