Zai Lab (NASDAQ:ZLAB) Sets New 12-Month High - Here's Why

Key Points

• Zai Lab shares hit a new 52-week high, reaching $29.02 on Monday, up from the previous close of $25.48; the stock later traded at $26.995.
• Analysts hold a “Moderate Buy” consensus with an average price target of $37.25. Ratings include one Strong Buy, four Buys, one Hold, and one Sell.
• In its latest quarter, Zai Lab reported a loss of $0.41 per share, narrower than analysts’ expected $0.59 loss, while revenue of $108.21 million slightly exceeded estimates.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report)'s stock price reached a new 52-week high during trading on Monday. The company traded as high as $29.02 and last traded at $26.9950, with a volume of 339,005 shares trading hands. The stock had previously closed at $25.48.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Wall Street Zen raised shares of Zai Lab from a "sell" rating to a "hold" rating in a research report on Saturday, September 26th. Cantor Fitzgerald reissued an "overweight" rating on shares of Zai Lab in a research note on Tuesday, October 6th. Citigroup upped their price objective on shares of Zai Lab from $44.00 to $45.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Zai Lab in a report on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $37.25.

Zai Lab Stock Performance

The firm has a 50-day moving average price of $24.62 and a two-hundred day moving average price of $21.06. The firm has a market cap of $3.38 billion, a price-to-earnings ratio of -15.25 and a beta of 0.77.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported ($0.41) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.59) by $0.18. Zai Lab had a negative return on equity of 31.15% and a negative net margin of 44.91%. The firm had revenue of $108.21 million during the quarter, compared to the consensus estimate of $107.90 million. Research analysts anticipate that Zai Lab Limited Unsponsored ADR will post -2.37 earnings per share for the current year.

Insider Transactions at Zai Lab

In other news, Director William Lis sold 8,506 shares of Zai Lab stock in a transaction 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 transaction, the director directly owned 41,931 shares of the company's stock, valued at $1,048,275. The trade was a 16.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. In the last quarter, insiders sold 9,385 shares of company stock worth $235,145. Company insiders own 4.88% of the company's stock.

Hedge Funds Weigh In On Zai Lab

Several institutional investors have recently added to or reduced their stakes in ZLAB. Nan Fung Trinity HK Ltd. increased its holdings in shares of Zai Lab by 106.9% in the third quarter. Nan Fung Trinity HK Ltd. now owns 293,966 shares of the company's stock valued at $7,743,000 after purchasing an additional 151,883 shares during the period. Alps Advisors Inc. grew its position in Zai Lab by 34.9% in the 3rd quarter. Alps Advisors Inc. now owns 148,993 shares of the company's stock valued at $3,924,000 after buying an additional 38,562 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in Zai Lab in the 3rd quarter valued at $62,000. China Universal Asset Management Co. Ltd. acquired a new position in Zai Lab in the 3rd quarter valued at $211,000. Finally, WealthPlan Investment Management LLC acquired a new position in Zai Lab in the 3rd quarter valued at $969,000. Institutional investors and hedge funds own 41.65% of the company's stock.

Zai Lab Company Profile

Zai Lab is a biopharmaceutical company that discovers, develops and commercializes medicines for patients with serious diseases. Its research and development programs focus on oncology, immunology, neuroscience and infectious diseases.

Founded in 2014 by biopharmaceutical executive Samantha Du, the company is headquartered in Shanghai and operates in China and the United States. It advances its own drug candidates and works with international partners to develop and bring therapies to market.

Zai Lab's portfolio includes medicines and development programs for cancers and other conditions, including therapies introduced through licensing and collaboration agreements.

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