Zymeworks Inc. (NASDAQ:ZYME) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on Zymeworks, with eight buy ratings, one strong buy, one hold and one sell. The average 12-month price target is $40.75, versus a recent share price of $27.47.
• Institutional ownership is high at 92.89%, with California State Teachers Retirement System increasing its position substantially and several firms initiating new stakes.
• Zymeworks reported weaker-than-expected quarterly results, including a $0.62 loss per share and $3.23 million in revenue, down 90.6% year over year. The company has also authorized a $125 million share repurchase program covering up to 7% of outstanding shares.

Zymeworks Inc. (NASDAQ:ZYME - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the eleven brokerages that are currently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, eight have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $40.75.

A number of research analysts have recently commented on ZYME shares. Truist Financial upped their price target on shares of Zymeworks from $31.00 to $32.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Wells Fargo & Company lifted their price objective on shares of Zymeworks from $37.00 to $40.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Stifel Nicolaus set a $46.00 price objective on shares of Zymeworks in a research report on Friday, August 7th. Citigroup restated a "buy" rating on shares of Zymeworks in a research note on Monday, August 10th. Finally, B. Riley Financial reaffirmed a "buy" rating and set a $44.00 target price (up from $40.00) on shares of Zymeworks in a research report on Monday, August 10th.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Zymeworks during the 2nd quarter valued at $508,000. California State Teachers Retirement System grew its position in shares of Zymeworks by 2,538.8% during the 2nd quarter. California State Teachers Retirement System now owns 986,628 shares of the company's stock worth $25,790,000 after buying an additional 949,239 shares in the last quarter. Nykredit A S purchased a new position in shares of Zymeworks during the second quarter valued at $25,000. Susquehanna Fundamental Investments LLC purchased a new position in shares of Zymeworks during the second quarter valued at $475,000. Finally, Wellington Management Group LLP purchased a new position in shares of Zymeworks during the second quarter valued at $2,876,000. 92.89% of the stock is currently owned by hedge funds and other institutional investors.

Zymeworks Stock Performance

Shares of ZYME stock opened at $27.47 on Wednesday. Zymeworks has a 52-week low of $13.60 and a 52-week high of $30.50. The firm has a market capitalization of $1.95 billion, a P/E ratio of -13.60 and a beta of 1.15. The stock has a 50 day moving average price of $24.60 and a 200 day moving average price of $24.72.

Zymeworks (NASDAQ:ZYME - Get Free Report) last announced its quarterly earnings data on Friday, August 7th. The company reported ($0.62) EPS for the quarter, missing the consensus estimate of ($0.56) by ($0.06). Zymeworks had a negative net margin of 405.31% and a negative return on equity of 72.30%. The business had revenue of $3.23 million during the quarter, compared to the consensus estimate of $4.54 million. During the same period last year, the company earned $0.03 EPS. The business's revenue was down 90.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Zymeworks will post 1.25 EPS for the current year.

Zymeworks announced that its Board of Directors has initiated a share repurchase plan on Thursday, May 14th that permits the company to repurchase $125.00 million in shares. This repurchase authorization permits the company to buy up to 7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

About Zymeworks

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks' innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.

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