Denali Therapeutics Inc. (NASDAQ:DNLI) director Steve E. Krognes has sold a significant portion of his holdings in the company, a recent filing with the Securities and Exchange Commission revealed. On April 1st, Krognes offloaded 92,500 shares of Denali Therapeutics common stock at an average price of $20.50 per share, totaling over $1.89 million.
The transaction was conducted under a Rule 10b5-1 trading plan, which Krognes had adopted on December 1, 2023. This type of plan allows corporate insiders to set up a predetermined schedule for buying and selling securities, providing them with a defense against potential accusations of trading on inside information.
The shares sold ranged in price from $20.06 to $20.73, with the weighted average sale price reported at $20.50. The filing indicated that Krognes would provide detailed information regarding the number of shares sold at each price upon request.
Following the sale, Krognes still holds a significant interest in the company, with 47,341 shares of common stock remaining in his possession. This figure includes 16,716 unvested Restricted Stock Units (RSUs), as noted in the filing.
Additionally, Krognes maintains indirect ownership of 850,000 shares of Denali Therapeutics held by The Steve Edward Krognes Revocable Trust, of which he is the trustee.
The sale represents a notable change in Krognes' investment in Denali Therapeutics, a biotechnology company specializing in biological products. Investors often monitor insider transactions for insights into company executives' perspectives on the firm's performance and future prospects.
Denali Therapeutics has not made any public comments regarding the transaction.
InvestingPro Insights
Amidst the recent insider transaction by Denali Therapeutics Inc. (NASDAQ:DNLI) director Steve E. Krognes, investors are closely scrutinizing the company's financial health and market performance. According to InvestingPro data, Denali Therapeutics holds a market capitalization of approximately $2.76 billion USD. Despite a significant revenue growth of 204.74% in the last twelve months as of Q4 2023, the company's gross profit margin was negative at -28.24%, reflecting the challenges in maintaining profitability.
Additionally, Denali Therapeutics' P/E ratio stands at -18.23, with an adjusted P/E ratio for the same period at -16.0, suggesting investor skepticism about the company's earnings potential. This sentiment is echoed in the InvestingPro Tips, which highlight that analysts have revised their earnings upwards for the upcoming period, yet they anticipate a sales decline in the current year and do not expect the company to be profitable this year.
These financial metrics and analyst expectations may offer context to Krognes' decision to sell a portion of his holdings. The InvestingPro platform, which includes these and additional tips for Denali Therapeutics, can be accessed at https://www.investing.com/pro/DNLI. For those interested in a deeper dive into the company's analytics, InvestingPro offers a total of 9 tips for Denali Therapeutics. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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