Zai Lab (NASDAQ:ZLAB) Stock Price Down 6.3% - Should You Sell?

Key Points

• Zai Lab shares fell 6.3% to approximately $23.04, with trading volume 79% below the average daily level.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $37.25—well above the current share price.
• The company remains unprofitable, reporting a quarterly loss of $0.50 per share, a negative net margin of 41.86%, and a negative return on equity of 27.43%; insiders have also sold shares recently.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) shares dropped 6.3% during trading on Tuesday. The company traded as low as $23.02 and last traded at $23.0440. 179,278 shares were traded during trading, a decline of 79% from the average daily volume of 855,420 shares. The stock had previously closed at $24.59.

Wall Street Analyst Weigh In

A number of equities analysts have commented on ZLAB shares. Wall Street Zen upgraded shares of Zai Lab from a "sell" rating to a "hold" rating in a research report on Saturday, September 26th. Weiss Ratings raised shares of Zai Lab from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, July 29th. Citigroup increased their price target on Zai Lab from $44.00 to $45.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Cantor Fitzgerald reissued an "overweight" rating on shares of Zai Lab in a research note on Tuesday, October 6th. Finally, Zacks Research upgraded shares of Zai Lab from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Zai Lab has a consensus rating of "Moderate Buy" and an average price target of $37.25.

Zai Lab Stock Performance

The company has a 50-day simple moving average of $25.16 and a two-hundred day simple moving average of $21.51. The stock has a market cap of $2.60 billion, a price-to-earnings ratio of -13.41 and a beta of 0.73.

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. The business had revenue of $106.31 million for the quarter. Zai Lab had a negative net margin of 41.86% and a negative return on equity of 27.43%. As a group, sell-side analysts predict that Zai Lab Limited Unsponsored ADR will post -2.37 earnings per share for the current fiscal year.

Insider Buying and Selling at Zai Lab

In other Zai Lab news, Director William Lis sold 8,506 shares of the company's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $25.00, for a total value of $212,650.00. Following the completion of the transaction, the director owned 41,931 shares of the company's stock, valued at $1,048,275. This represents a 16.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders have sold a total of 9,385 shares of company stock worth $235,145 over the last quarter. 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. Nykredit A S purchased a new stake in shares of Zai Lab in the second quarter worth approximately $79,000. Headlands Technologies LLC lifted its position in shares of Zai Lab by 142.0% during the second quarter. Headlands Technologies LLC now owns 68,010 shares of the company's stock valued at $1,292,000 after purchasing an additional 39,901 shares in the last quarter. Finally, Seven Fleet Capital Management LP grew its position in Zai Lab by 74.7% in the 2nd quarter. Seven Fleet Capital Management LP now owns 136,016 shares of the company's stock worth $2,584,000 after purchasing an additional 58,158 shares in the last quarter. 41.65% of the stock is owned by institutional investors and hedge funds.

Zai Lab Company Profile

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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