Zai Lab (NASDAQ:ZLAB) Stock Price Down 4.6% - Here's Why

Key Points

• Zai Lab shares fell 4.6% to about $24.34 in Friday midday trading, with volume down 88% from the average session.
• Analyst sentiment remains moderately positive: the stock has a consensus “Moderate Buy” rating and an average price target of $37.25, despite several recent rating changes.
• The company reported a quarterly loss of $0.50 per share on $106.31 million in revenue, while insiders sold roughly $235,000 of stock over the past 90 days.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) shares traded down 4.6% during mid-day trading on Friday. The stock traded as low as $24.51 and last traded at $24.3350. 99,456 shares were traded during trading, a decline of 88% from the average session volume of 856,308 shares. The stock had previously closed at $25.50.

Analyst Upgrades and Downgrades

Several analysts have weighed in on ZLAB shares. Zacks Research upgraded Zai Lab from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 7th. Wall Street Zen upgraded shares of Zai Lab from a "sell" rating to a "hold" rating in a report on Saturday, September 26th. Citigroup lifted their target price on shares of Zai Lab from $44.00 to $45.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Finally, Weiss Ratings upgraded shares of Zai Lab from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $37.25.

Zai Lab Stock Performance

The stock has a market capitalization of $2.74 billion, a P/E ratio of -14.12 and a beta of 0.72. The business has a 50-day moving average price of $24.25 and a 200 day moving average price of $21.19.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last announced its quarterly earnings results on Tuesday, June 30th. The company reported ($0.50) earnings per share (EPS) for the quarter. Zai Lab had a negative return on equity of 27.43% and a negative net margin of 41.86%.The firm had revenue of $106.31 million during the quarter. As a group, research analysts forecast that Zai Lab Limited Unsponsored ADR will post -2.17 earnings per share for the current fiscal year.

Insider Activity at Zai Lab

In other Zai Lab news, Director William Lis sold 8,506 shares of Zai Lab stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $25.00, for a total transaction of $212,650.00. Following the transaction, the director owned 41,931 shares of the company's stock, valued at $1,048,275. The trade was a 16.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 9,385 shares of company stock valued at $235,145 over the last 90 days. 4.88% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Seven Fleet Capital Management LP raised its position in Zai Lab by 74.7% during the second quarter. Seven Fleet Capital Management LP now owns 136,016 shares of the company's stock valued at $2,584,000 after purchasing an additional 58,158 shares during the period. Headlands Technologies LLC lifted its holdings in Zai Lab by 142.0% during the 2nd quarter. Headlands Technologies LLC now owns 68,010 shares of the company's stock valued at $1,292,000 after buying an additional 39,901 shares in the last quarter. Finally, Nykredit A S purchased a new stake in shares of Zai Lab in the second quarter valued at approximately $79,000. Hedge funds and other institutional investors own 41.65% of the company's stock.

About Zai Lab

Zai Lab Ltd. NASDAQ: ZLAB is a biopharmaceutical company focused on discovering, developing and commercializing medicines for serious diseases with significant unmet medical needs. The company's research and development activities span oncology, autoimmune and inflammatory disorders, infectious diseases, and neuroscience.

Founded in 2014 by Samantha Du, Zai Lab has built a portfolio through internal research as well as licensing and collaboration agreements with international pharmaceutical and biotechnology companies.

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