Leerink Partnrs Decreases Earnings Estimates for Zai Lab

Key Points

• Leerink Partners has lowered its FY2026 earnings forecast for Zai Lab, now predicting an EPS of $0.45, down from $0.51, while the consensus estimate stands at a loss of $2.58 per share.
• Zai Lab's recent quarterly earnings resulted in a loss of ($0.37) per share, matching expectations, but revenues fell short of estimates at $109.98 million compared to $125.66 million.
• The stock has recently been received mixed ratings, with a consensus of "Moderate Buy" based on multiple analysts' target prices ranging from $52.00 to $75.00.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) - Leerink Partnrs lowered their FY2026 earnings per share estimates for Zai Lab in a research report issued on Thursday, September 4th. Leerink Partnrs analyst J. Chang now forecasts that the company will post earnings per share of $0.45 for the year, down from their prior estimate of $0.51. The consensus estimate for Zai Lab's current full-year earnings is ($2.58) per share.

A number of other research firms have also weighed in on ZLAB. Citigroup restated a "buy" rating and issued a $69.00 target price (up previously from $66.00) on shares of Zai Lab in a report on Monday, August 11th. Wall Street Zen lowered Zai Lab from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Jefferies Financial Group started coverage on Zai Lab in a report on Monday, August 25th. They set a "buy" rating and a $52.00 price target on the stock. Finally, Leerink Partners set a $75.00 price target on Zai Lab and gave the stock an "outperform" rating in a report on Monday, June 30th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $56.35.

Zai Lab Price Performance

Shares of ZLAB stock traded up $0.32 during trading hours on Monday, reaching $32.80. The company had a trading volume of 956,964 shares, compared to its average volume of 770,407. Zai Lab has a 12 month low of $20.17 and a 12 month high of $44.34. The business has a fifty day simple moving average of $34.78 and a 200-day simple moving average of $34.01. The company has a market cap of $3.67 billion, a price-to-earnings ratio of -16.08 and a beta of 1.04.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.37) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.37). Zai Lab had a negative return on equity of 27.32% and a negative net margin of 49.68%.The company had revenue of $109.98 million for the quarter, compared to analyst estimates of $125.66 million. Zai Lab has set its FY 2025 guidance at EPS.

Insider Transactions at Zai Lab

In other news, CFO Yajing Chen sold 1,438 shares of Zai Lab stock in a transaction on Friday, August 15th. The stock was sold at an average price of $35.42, for a total value of $50,933.96. Following the completion of the transaction, the chief financial officer directly owned 16,720 shares in the company, valued at approximately $592,222.40. The trade was a 7.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ying Du sold 46,387 shares of Zai Lab stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $35.47, for a total value of $1,645,346.89. Following the completion of the transaction, the chief executive officer owned 536,962 shares of the company's stock, valued at approximately $19,046,042.14. This trade represents a 7.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 215,710 shares of company stock valued at $7,589,684. Corporate insiders own 4.96% of the company's stock.

Hedge Funds Weigh In On Zai Lab

Several hedge funds have recently made changes to their positions in the stock. Acadian Asset Management LLC purchased a new position in shares of Zai Lab in the first quarter valued at $1,073,000. MPM Bioimpact LLC grew its position in Zai Lab by 4.2% during the first quarter. MPM Bioimpact LLC now owns 833,659 shares of the company's stock worth $30,128,000 after buying an additional 33,659 shares in the last quarter. Frazier Life Sciences Management L.P. purchased a new position in Zai Lab during the first quarter worth about $12,649,000. Cubist Systematic Strategies LLC grew its position in Zai Lab by 29.0% during the first quarter. Cubist Systematic Strategies LLC now owns 93,645 shares of the company's stock worth $3,384,000 after buying an additional 21,026 shares in the last quarter. Finally, Royal Bank of Canada grew its position in Zai Lab by 214.3% during the first quarter. Royal Bank of Canada now owns 13,771 shares of the company's stock worth $498,000 after buying an additional 9,390 shares in the last quarter. 41.65% of the stock is currently owned by hedge funds and other institutional investors.

Zai Lab Company Profile

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis.