Wellington Management Group LLP Takes $2.88 Million Position in Zymeworks Inc. $ZYME

Key Points

• Wellington Management acquired 110,014 Zymeworks shares worth approximately $2.88 million, joining other institutional investors; institutions and hedge funds collectively own 92.89% of the stock.
• Zymeworks reported weaker-than-expected quarterly results, including a $0.62 loss per share versus the $0.56 consensus loss and revenue of $3.23 million, down 90.6% year over year.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and a $41 average price target versus the stock’s $26.43 opening price; the company also authorized a $125 million share repurchase program.

Wellington Management Group LLP purchased a new position in shares of Zymeworks Inc. (NASDAQ:ZYME - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 110,014 shares of the company's stock, valued at approximately $2,876,000. Wellington Management Group LLP owned 0.16% of Zymeworks as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd acquired a new stake in Zymeworks in the fourth quarter worth approximately $37,000. Quarry LP acquired a new position in shares of Zymeworks in the 3rd quarter worth approximately $50,000. Tower Research Capital LLC TRC raised its holdings in shares of Zymeworks by 29.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company's stock worth $62,000 after purchasing an additional 1,131 shares in the last quarter. State of Wyoming bought a new stake in shares of Zymeworks in the 2nd quarter worth approximately $73,000. Finally, BNP Paribas Financial Markets raised its holdings in shares of Zymeworks by 157.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 10,307 shares of the company's stock worth $129,000 after purchasing an additional 6,307 shares in the last quarter. 92.89% of the stock is owned by institutional investors and hedge funds.

Zymeworks Stock Performance

Shares of ZYME opened at $26.43 on Friday. The company has a market capitalization of $1.88 billion, a PE ratio of -13.08 and a beta of 1.19. The company's 50 day moving average price is $25.72 and its 200 day moving average price is $25.23. Zymeworks Inc. has a 52 week low of $14.88 and a 52 week high of $31.34.

Zymeworks (NASDAQ:ZYME - Get Free Report) last announced its quarterly earnings results 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 firm had revenue of $3.23 million during the quarter, compared to the consensus estimate of $4.54 million. During the same period in the previous year, the firm posted $0.03 EPS. The company's quarterly revenue was down 90.6% compared to the same quarter last year. On average, equities analysts forecast that Zymeworks Inc. will post 1.38 earnings per share for the current fiscal year.

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

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on ZYME shares. Wells Fargo & Company raised their target price on shares of Zymeworks from $37.00 to $40.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. B. Riley Financial reiterated a "buy" rating and set a $44.00 price objective (up from $40.00) on shares of Zymeworks in a research report on Monday, August 10th. Deutsche Bank Aktiengesellschaft set a $32.00 price objective on Zymeworks in a research note on Wednesday, August 26th. Weiss Ratings restated a "sell (d-)" rating on shares of Zymeworks in a report on Friday, July 17th. Finally, Citizens Jmp reaffirmed a "market outperform" rating and set a $32.00 target price on shares of Zymeworks in a research report on Wednesday, August 26th. Nine research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $41.00.

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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