Zymeworks (NASDAQ:ZYME) Reaches New 1-Year High on Strong Earnings

Key Points

• Zymeworks shares reached a new 52-week high of $31.97 after quarterly results showed EPS of $2.28 and revenue of $512.92 million, well above analysts’ revenue estimate; revenue rose 828.7% year over year.
• The profit included a $250 million milestone payment from Jazz Pharmaceuticals, so some of the earnings strength may be nonrecurring. The company also raised its 2026 earnings guidance.
• Analyst sentiment is broadly positive: MarketBeat reported a “Moderate Buy” consensus and an average price target of $41.75, while HC Wainwright raised its target to $56.

Zymeworks Inc. (NASDAQ:ZYME - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $31.97 and last traded at $30.91, with a volume of 286,303 shares. The stock had previously closed at $30.81.

The company reported $2.28 earnings per share for the quarter, topping analysts' consensus estimates of $2.27 by $0.01. Zymeworks had a negative return on equity of 72.30% and a negative net margin of 405.31%. The company had revenue of $512.92 million for the quarter, compared to analyst estimates of $227.40 million. During the same period in the prior year, the firm earned ($0.26) earnings per share. Zymeworks's revenue for the quarter was up 828.7% on a year-over-year basis.

Key Zymeworks News

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: HC Wainwright raised its price target to $56 from $55 and maintained a Buy rating, signaling substantial potential upside in the analyst’s view. Tickerreport article
• Positive Sentiment: Zymeworks raised its 2026 earnings guidance, a favorable update for the company’s near-term outlook. 2026 earnings guidance article
• Neutral Sentiment: Q3 results showed a sharp swing to profit, with EPS of $2.28 versus a loss a year earlier. Revenue was reported above estimates. A $250 million milestone payment from Jazz Pharmaceuticals contributed to the profit, so investors may view some of the results as nonrecurring. Milestone and earnings article
• Negative Sentiment: EPS beat one cited consensus estimate of $2.27 by a penny, but missed the Zacks estimate of $2.40, leaving the earnings comparison mixed. Zacks earnings article

Analysts Set New Price Targets

Several brokerages recently weighed in on ZYME. Wolfe Research started coverage on Zymeworks in a report on Thursday, September 17th. They set an "outperform" rating for the company. B. Riley Financial reaffirmed a "buy" rating and set a $44.00 price target (up from $40.00) on shares of Zymeworks in a research report on Monday, August 10th. JPMorgan Chase & Co. boosted their target price on Zymeworks from $31.00 to $33.00 and gave the company an "overweight" rating in a research note on Thursday, September 3rd. TD Cowen initiated coverage on shares of Zymeworks in a report on Tuesday, September 29th. They issued a "buy" rating and a $34.00 price objective for the company. Finally, Deutsche Bank Aktiengesellschaft set a $32.00 target price on shares of Zymeworks in a research note on Wednesday, August 26th. Twelve analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $41.75.

Insider Buying and Selling

In related news, EVP Adam Schayowitz sold 13,832 shares of the company's stock in a transaction on Friday, October 9th. The shares were sold at an average price of $25.85, for a total transaction of $357,557.20. Following the sale, the executive vice president owned 23,205 shares of the company's stock, valued at $599,849.25. This represents a 37.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 37.73% of the company's stock.

Institutional Investors Weigh In On Zymeworks

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Nykredit A S purchased a new stake in Zymeworks in the second quarter valued at about $25,000. Sterling Capital Management LLC raised its position in shares of Zymeworks by 813.3% in the 3rd quarter. Sterling Capital Management LLC now owns 1,507 shares of the company's stock valued at $40,000 after purchasing an additional 1,342 shares during the last quarter. State of Wyoming acquired a new stake in Zymeworks in the 2nd quarter worth approximately $73,000. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Zymeworks during the 3rd quarter worth approximately $96,000. Finally, State of Alaska Department of Revenue purchased a new stake in Zymeworks during the 3rd quarter worth approximately $102,000. 92.89% of the stock is owned by institutional investors.

Zymeworks Stock Performance

The stock's 50 day simple moving average is $27.46 and its 200-day simple moving average is $25.38. The firm has a market cap of $2.20 billion, a price-to-earnings ratio of -15.40 and a beta of 1.32.

About Zymeworks

Zymeworks Inc is a biotechnology company headquartered in Vancouver, Canada, that develops engineered medicines, with a focus on treatments for cancer and other serious diseases. Its antibody-engineering technologies are designed to create therapies that can engage multiple biological targets or modify immune responses.

The company's lead program is zanidatamab, a HER2-targeted bispecific antibody. In the United States, it is marketed by partner Jazz Pharmaceuticals as Ziihera for certain adults with previously treated, unresectable or metastatic biliary tract cancer.

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