Zai Lab (NASDAQ:ZLAB) Stock Rating Raised to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Zai Lab from “sell” to “hold.” Despite mixed analyst views, the broader consensus is “Moderate Buy,” with an average price target of $37.25 versus the reported share price of $24.98.
• Zai Lab reported a quarterly loss of $0.50 per share on $106.31 million in revenue, while analysts expect a full-year loss of $2.37 per share. The company had a negative net margin of 41.86% and negative return on equity of 27.43%.
• Insiders sold 16,411 shares worth about $365,337 over the past 90 days, while institutional investors increased their positions; institutions currently own 41.65% of the stock.

Zai Lab (NASDAQ:ZLAB - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

Other research analysts also recently issued research reports about the company. Weiss Ratings upgraded Zai Lab from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, July 29th. Citigroup increased their price objective on Zai Lab from $44.00 to $45.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Finally, Zacks Research raised Zai Lab from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $37.25.

Zai Lab Stock Down 1.2%

Shares of Zai Lab stock opened at $24.98 on Friday. The company's fifty day simple moving average is $23.80 and its two-hundred day simple moving average is $20.98. Zai Lab has a 12-month low of $15.96 and a 12-month high of $34.72. The firm has a market cap of $2.84 billion, a PE ratio of -14.61 and a beta of 0.83.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its quarterly earnings data on Tuesday, June 30th. The company reported ($0.50) EPS for the quarter. The firm had revenue of $106.31 million for the quarter. Zai Lab had a negative net margin of 41.86% and a negative return on equity of 27.43%. As a group, sell-side analysts expect that Zai Lab will post -2.37 earnings per share for the current fiscal year.

Insider Activity

In other Zai Lab news, CEO Ying Du sold 7,026 shares of the firm's stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $18.53, for a total value of $130,191.78. Following the completion of the sale, the chief executive officer directly owned 1,203,784 shares in the company, valued at $22,306,117.52. This trade represents a 0.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director William Lis sold 8,506 shares of Zai Lab stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $25.00, for a total value of $212,650.00. Following the sale, the director directly owned 41,931 shares in the company, valued at approximately $1,048,275. The trade was a 16.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 16,411 shares of company stock valued at $365,337 over the last 90 days. 4.88% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zai Lab

Hedge funds have recently made changes to their positions in the company. Seven Fleet Capital Management LP boosted its stake in Zai Lab by 74.7% in the 2nd quarter. Seven Fleet Capital Management LP now owns 136,016 shares of the company's stock worth $2,584,000 after purchasing an additional 58,158 shares in the last quarter. Headlands Technologies LLC increased its stake in Zai Lab by 142.0% during the 2nd quarter. Headlands Technologies LLC now owns 68,010 shares of the company's stock valued at $1,292,000 after purchasing an additional 39,901 shares in the last quarter. Finally, Nykredit A S purchased a new position in Zai Lab in the second quarter worth about $79,000. 41.65% of the stock is currently owned by institutional investors.

About Zai Lab

Zai Lab Limited is a biopharmaceutical company focused on discovering, developing and commercializing medicines for significant unmet medical needs. The company's research and development activities have centered on oncology, autoimmune and inflammatory diseases, infectious diseases, and neuroscience. Zai Lab operates through a combination of internally developed programs and collaborations with global pharmaceutical and biotechnology companies.

The company has built a commercial portfolio in Greater China that has included ZEJULA (niraparib), a PARP inhibitor used in certain ovarian cancer settings; QINLOCK (ripretinib), a treatment for gastrointestinal stromal tumors; and NUZYRA (omadacycline), an antibiotic for certain bacterial infections.

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