Zymeworks Inc. $ZYME Shares Sold by Redmile Group LLC

Key Points

• Redmile Group LLC has reduced its stake in Zymeworks Inc. (NYSE: ZYME) by 1.1%, now holding approximately 4.79 million shares, making it the fund's fourth largest holding.
• Zymeworks reported a positive quarterly earnings surprise with an EPS of $0.03, exceeding analyst estimates of ($0.52) and showing a 153.2% increase in revenue year-over-year.
• The company is currently rated as a "Moderate Buy" by analysts, with an average price target of $21.43, indicating optimistic expectations for its stock performance.

Redmile Group LLC lessened its holdings in shares of Zymeworks Inc. (NYSE:ZYME - Free Report) by 1.1% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,788,945 shares of the company's stock after selling 51,518 shares during the period. Zymeworks accounts for approximately 5.4% of Redmile Group LLC's investment portfolio, making the stock its 4th biggest position. Redmile Group LLC owned about 6.88% of Zymeworks worth $57,036,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Janney Montgomery Scott LLC grew its stake in shares of Zymeworks by 12.7% in the 1st quarter. Janney Montgomery Scott LLC now owns 11,567 shares of the company's stock valued at $138,000 after buying an additional 1,300 shares during the period. Nuveen LLC acquired a new position in shares of Zymeworks in the 1st quarter worth approximately $2,368,000. Nuveen Asset Management LLC lifted its holdings in shares of Zymeworks by 0.4% in the 4th quarter. Nuveen Asset Management LLC now owns 207,023 shares of the company's stock worth $3,031,000 after acquiring an additional 886 shares during the last quarter. MetLife Investment Management LLC lifted its holdings in shares of Zymeworks by 6.4% in the 4th quarter. MetLife Investment Management LLC now owns 33,946 shares of the company's stock worth $497,000 after acquiring an additional 2,053 shares during the last quarter. Finally, SG Americas Securities LLC lifted its holdings in shares of Zymeworks by 266.5% in the 1st quarter. SG Americas Securities LLC now owns 98,165 shares of the company's stock worth $1,169,000 after acquiring an additional 71,383 shares during the last quarter. Hedge funds and other institutional investors own 92.89% of the company's stock.

Zymeworks Price Performance

Shares of ZYME traded up $0.97 during midday trading on Friday, reaching $15.05. The stock had a trading volume of 627,107 shares, compared to its average volume of 528,693. Zymeworks Inc. has a 1-year low of $9.03 and a 1-year high of $17.70. The company's fifty day simple moving average is $13.63 and its two-hundred day simple moving average is $12.65. The company has a market cap of $1.13 billion, a price-to-earnings ratio of -10.03 and a beta of 1.27.

Zymeworks (NYSE:ZYME - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.03 earnings per share for the quarter, beating analysts' consensus estimates of ($0.52) by $0.55. The business had revenue of $48.73 million for the quarter, compared to analyst estimates of $17.18 million. Zymeworks had a negative net margin of 182.75% and a negative return on equity of 23.00%. The company's revenue was up 153.2% on a year-over-year basis. During the same period last year, the business earned ($0.49) EPS. On average, sell-side analysts forecast that Zymeworks Inc. will post -1.39 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. HC Wainwright restated a "neutral" rating and issued a $13.00 price objective on shares of Zymeworks in a report on Thursday, July 3rd. TD Securities started coverage on shares of Zymeworks in a report on Tuesday, May 20th. They issued a "buy" rating on the stock. Citigroup increased their target price on shares of Zymeworks from $19.00 to $22.00 and gave the stock a "buy" rating in a report on Monday, August 11th. Finally, TD Cowen started coverage on shares of Zymeworks in a report on Tuesday, May 20th. They set a "buy" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $21.43.

About Zymeworks

Zymeworks Inc, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company's lead product candidates include zanidatamab, a human epidermal growth factor receptor 2 (HER2) that is in Phase 1, Phase 2, and Phase 3 clinical trials, including certain ongoing pivotal clinical trials; and zanidatamab zovodotin, a HER2 -targeted antibody-drug conjugate that is in Phase 2 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors.