Why Denali Therapeutics Inc. (DNLI) Is Getting Lifted Today

Denali Therapeutics Inc. (NASDAQ:DNLI) is among the top gainers of the stock market today, skyrocketing 4.88% or (1 points) to $21.5 from its previous close of $20.5. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 198573 contracts so far this session. DNLI shares had a relatively better volume day versus average trading capacity of 432.73 thousand shares, but with a 86.65 million float and a -12.77% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for DNLI stock indicates that the average analyst price target is $27.4 per share. This means the stock has a potential increase of 27.44% from where the DNLI share price has been trading recently which is between $20.36 and $21.05. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $23.

The shorts are climbing into Denali Therapeutics Inc. (DNLI) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a rise in short interest in DNLI shares. While short interest still represents only 10.67% of DNLI’s float, the number of shares shorted have risen by 290339. The number of shares shorted advanced to 9538689 shares, up from 9248350 shares during the preceding fortnight. With average daily trading volumes at 399206 shares, days to cover increased to about 19.48141 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Denali Therapeutics Inc. (DNLI) Reports Q1 Loss, Lags Revenue Estimates” and dated May 08, 2019.

During the recent trading session for Denali Therapeutics Inc. (NASDAQ:DNLI), the company witnessed their stock drop by $-2.03 over a week and tumble down $-5.28 from the price 20 days ago. When compared to their established 52-week high of $28.86, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 10/04/19. The recent low of $12.32 stood for a -25.52% since 07/31/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Denali Therapeutics Inc., the two-week RSI stands at 35.55. This figure suggests that DNLI stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current DNLI readings is similarly very revealing as it has a stochastic reading of 11.63% at this stage. This figure means that DNLI share price today is being overbought.

Technical chart claims that Denali Therapeutics Inc. (DNLI) would settle between $20.91/share to $21.33/share level. However, if the stock price goes below the $20.22 mark, then the market for Denali Therapeutics Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $19.95 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.69. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Cantor Fitzgerald, assumed coverage of DNLI assigning Overweight rating, according to their opinion released on November 15. Janney, analysts launched coverage of Denali Therapeutics Inc. (NASDAQ:DNLI) stock with a Buy recommendation, according to their flash note issued to investors on November 12. Analysts at Evercore ISI lowered the stock to a In-line call from its previous Outperform recommendation, in a research note that dated back to March 12.

DNLI equity has an average rating of 2.43, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 3 analysts rated Denali Therapeutics Inc. (NASDAQ:DNLI) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, DNLI stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 14.75 while for the average stock in the same group, the multiple is 42.37.

Denali Therapeutics Inc. (DNLI)’s current-quarter revenues are projected to climb by nearly 173.7% to hit $4.52 million, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -51.36% from $129160 to a noteworthy $62.83 million. At the other end of the current quarter income statement, Denali Therapeutics Inc. is expected to see its adjusted earnings surge by roughly 25.42% to hit $-0.44 per share. For the fiscal year, DNLI’s earnings are projected to climb by roughly -269.23% to hit $-1.44 per share.