Zymeworks (NASDAQ:ZYME) Reaches New 1-Year High - Time to Buy?

Key Points

• Zymeworks shares reached a new 52-week high, trading as high as $29.95 and closing near $29.58, with a market capitalization of approximately $1.86 billion.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $40.75; recent targets range from $32 to $51, although one firm maintains a sell rating.
• The company reported weaker-than-expected quarterly results, including a $0.62 per-share loss and revenue down 90.6% year over year, but authorized a $125 million stock buyback covering up to 7% of outstanding shares.

Zymeworks Inc. (NASDAQ:ZYME - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $29.95 and last traded at $29.5780, with a volume of 199051 shares traded. The stock had previously closed at $28.77.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ZYME. Wells Fargo & Company lifted their target price on shares of Zymeworks from $37.00 to $40.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Truist Financial increased their price target on shares of Zymeworks from $31.00 to $32.00 and gave the stock a "buy" rating in a report on Friday, August 7th. HC Wainwright raised their price target on shares of Zymeworks from $46.00 to $51.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Zymeworks in a report on Friday, July 17th. Finally, B. Riley Financial reiterated a "buy" rating and issued a $44.00 price objective (up from $40.00) on shares of Zymeworks in a research report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $40.75.

Zymeworks Stock Down 8.9%

The firm has a market capitalization of $1.86 billion, a PE ratio of -12.95 and a beta of 1.15. The stock has a 50-day moving average price of $24.50 and a 200 day moving average price of $24.69.

Zymeworks (NASDAQ:ZYME - Get Free Report) last announced its earnings results on Friday, August 7th. The company reported ($0.62) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.06). Zymeworks had a negative net margin of 405.31% and a negative return on equity of 72.30%. The business had revenue of $3.23 million for the quarter, compared to analysts' expectations of $4.54 million. During the same quarter last year, the business earned $0.03 EPS. The company's quarterly revenue was down 90.6% on a year-over-year basis. As a group, equities analysts predict that Zymeworks Inc. will post 1.25 earnings per share for the current fiscal year.

Zymeworks declared that its board has initiated a stock buyback plan on Thursday, May 14th that authorizes the company to buyback $125.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of Zymeworks

Several institutional investors have recently modified their holdings of ZYME. Deutsche Bank AG acquired a new stake in Zymeworks in the 2nd quarter valued at about $10,383,000. Kornitzer Capital Management Inc. KS acquired a new position in shares of Zymeworks during the 4th quarter worth approximately $2,338,000. Rubric Capital Management LP boosted its holdings in shares of Zymeworks by 21.7% during the 1st quarter. Rubric Capital Management LP now owns 7,000,000 shares of the company's stock worth $175,280,000 after purchasing an additional 1,250,000 shares during the last quarter. Vanguard Group Inc. grew its position in shares of Zymeworks by 8.1% in the fourth quarter. Vanguard Group Inc. now owns 2,328,727 shares of the company's stock valued at $61,315,000 after purchasing an additional 174,293 shares in the last quarter. Finally, Principal Financial Group Inc. purchased a new stake in shares of Zymeworks in the first quarter valued at approximately $1,967,000. Institutional investors and hedge funds own 92.89% of the company's stock.

Zymeworks Company Profile

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks' innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.

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