Wellington Management Group LLP Lowers Stock Position in Zai Lab Limited Unsponsored ADR $ZLAB

Key Points

• Wellington Management Group LLP reduced its stake in Zai Lab by 45.2%, now holding approximately $131.81 million worth of shares, or about 3.31% of the company.
• Zai Lab reported a revenue of $109.98 million for the last quarter, falling short of analysts' expectations of $125.66 million, and the company's stock has seen significant insider selling recently.
• Analysts' ratings for Zai Lab include five "Buy" ratings and one "Hold," with an average price target set at $57.22.

Wellington Management Group LLP lowered its stake in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) by 45.2% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 3,647,225 shares of the company's stock after selling 3,010,510 shares during the quarter. Wellington Management Group LLP owned 3.31% of Zai Lab worth $131,811,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ZLAB. GF Fund Management CO. LTD. purchased a new stake in Zai Lab during the fourth quarter valued at about $29,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Zai Lab in the 1st quarter worth about $75,000. Barclays PLC increased its position in shares of Zai Lab by 337.6% during the 4th quarter. Barclays PLC now owns 3,702 shares of the company's stock valued at $97,000 after purchasing an additional 2,856 shares during the last quarter. Advisors Preferred LLC purchased a new position in shares of Zai Lab during the 1st quarter valued at about $110,000. Finally, Palumbo Wealth Management LLC bought a new stake in Zai Lab in the 1st quarter worth approximately $203,000. 41.65% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Zai Lab

In other Zai Lab news, Director William Lis sold 13,814 shares of the company's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $35.67, for a total value of $492,745.38. Following the completion of the transaction, the director directly owned 35,106 shares in the company, valued at approximately $1,252,231.02. This represents a 28.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joshua L. Smiley sold 6,641 shares of Zai Lab stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $36.24, for a total transaction of $240,669.84. Following the sale, the insider directly owned 76,604 shares in the company, valued at $2,776,128.96. The trade was a 7.98% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 225,328 shares of company stock valued at $7,878,224 in the last 90 days. 4.96% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several research firms have commented on ZLAB. Jefferies Financial Group assumed coverage on shares of Zai Lab in a research note on Monday. They set a "buy" rating and a $52.00 price target on the stock. Wall Street Zen lowered shares of Zai Lab from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Leerink Partners set a $75.00 price target on shares of Zai Lab and gave the stock an "outperform" rating in a research note on Monday, June 30th. Finally, Citigroup restated a "buy" rating and set a $69.00 price target (up from $66.00) on shares of Zai Lab in a research report on Monday, August 11th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $56.35.

Zai Lab Stock Performance

Shares of NASDAQ ZLAB traded up $0.26 during trading hours on Tuesday, hitting $34.29. The company's stock had a trading volume of 148,038 shares, compared to its average volume of 959,881. Zai Lab Limited Unsponsored ADR has a 12 month low of $18.32 and a 12 month high of $44.34. The stock has a market cap of $3.83 billion, a price-to-earnings ratio of -16.83 and a beta of 1.03. The business has a 50-day simple moving average of $35.95 and a 200-day simple moving average of $33.89.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.37) earnings per share for the quarter, hitting the consensus estimate of ($0.37). Zai Lab had a negative return on equity of 27.32% and a negative net margin of 49.68%.The business had revenue of $109.98 million during the quarter, compared to analysts' expectations of $125.66 million. Zai Lab has set its FY 2025 guidance at EPS. On average, equities research analysts forecast that Zai Lab Limited Unsponsored ADR will post -2.58 EPS for the current year.

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis.