Zymeworks (NASDAQ:ZYME) Shares Break Below 50 Day Moving Average - Here's What Happened

Key Points

• Zymeworks shares fell below their 50-day moving average of $27.39 on Thursday, trading as low as $26.43 and last at $26.47.
• The company reported quarterly EPS of $2.28, slightly ahead of estimates, and revenue of $512.92 million versus a $227.40 million consensus estimate; revenue rose 828.7% year over year.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and average price target of $42.67, though HC Wainwright sharply reduced its future earnings forecasts while retaining a Buy rating.

Zymeworks Inc. (NASDAQ:ZYME - Get Free Report) passed below its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $27.39 and traded as low as $26.43. Zymeworks shares last traded at $26.47, with a volume of 1,331,913 shares traded.

Zymeworks News Roundup

Investors following ZYME have been watching these news items:

• Positive Sentiment: Citigroup raised its price target to $44 from $39 and maintained a Buy rating. Truist also forecast strong price appreciation, while TD Cowen lifted its target, adding to the positive analyst outlook. Truist Financial Forecasts Strong Price Appreciation for Zymeworks Zymeworks Stock Gets Price Target Boost from TD Cowen
• Positive Sentiment: Zymeworks recently reported better-than-expected earnings and reached a 52-week high, suggesting strong results had supported investor demand. Zymeworks Hits New 52-Week High After Better-Than-Expected Earnings
• Negative Sentiment: HC Wainwright cut estimates across several upcoming quarters and reduced its FY2026 EPS forecast to $1.19 from $1.51. Its FY2027 outlook shifted from expected earnings of $1.32 per share to a loss of $0.39 per share. These substantial revisions are a negative near-term signal, although the firm kept its Buy rating and $56 target. Zymeworks analyst and stock information

Wall Street Analyst Weigh In

Several brokerages have commented on ZYME. Stifel Nicolaus set a $46.00 price objective on shares of Zymeworks in a research report on Friday, August 7th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $52.00 target price on shares of Zymeworks in a report on Friday, October 23rd. Wells Fargo & Company raised their target price on Zymeworks from $37.00 to $40.00 and gave the company an "overweight" rating in a report on Friday, August 7th. B. Riley Financial reiterated a "buy" rating and issued a $44.00 price target (up from $40.00) on shares of Zymeworks in a research note on Monday, August 10th. Finally, HC Wainwright boosted their price target on Zymeworks from $55.00 to $56.00 and gave the stock a "buy" rating in a report on Tuesday. Twelve research 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. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $42.67.

Zymeworks Stock Performance

The firm's fifty day moving average is $27.39 and its 200-day moving average is $25.46. The company has a market capitalization of $1.83 billion, a P/E ratio of 50.90 and a beta of 1.32.

Zymeworks (NASDAQ:ZYME - Get Free Report) last issued its quarterly earnings data on Monday, November 9th. The company reported $2.28 EPS for the quarter, beating the consensus estimate of $2.27 by $0.01. Zymeworks had a net margin of 16.10% and a return on equity of 22.23%. The business had revenue of $512.92 million during the quarter, compared to the consensus estimate of $227.40 million. During the same quarter in the prior year, the firm earned ($0.26) EPS. The firm's revenue was up 828.7% compared to the same quarter last year. As a group, analysts expect that Zymeworks Inc. will post 1.31 EPS for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On Zymeworks

A number of institutional investors and hedge funds have recently bought and sold shares of ZYME. Deutsche Bank AG acquired a new stake in shares of Zymeworks during the second quarter valued at about $10,383,000. Bank of America Corp DE acquired a new position in shares of Zymeworks in the second quarter valued at approximately $5,727,000. Rubric Capital Management LP increased its stake in shares of Zymeworks by 21.7% in the first quarter. Rubric Capital Management LP now owns 7,000,000 shares of the company's stock valued at $175,280,000 after buying an additional 1,250,000 shares during the period. Legal & General Group Plc acquired a new position in shares of Zymeworks in the second quarter valued at approximately $1,128,000. Finally, Jupiter Topco LLC bought a new position in Zymeworks in the 2nd quarter valued at approximately $476,000. Institutional investors and hedge funds own 92.89% of the company's stock.

Zymeworks Company Profile

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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