Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately positive: Seven brokerages collectively rate Zai Lab “Moderate Buy,” with four buys, one strong buy, one hold and one sell. The average 12-month price target is $40, versus the stock’s opening price of $18.18.
• Shares remain near their yearly lows: ZLAB has a 52-week range of $15.96 to $39.64, with 50-day and 200-day moving averages of $18.59 and $19.22, respectively. The company reported a quarterly loss of $0.50 per share on $99.61 million in revenue.
• Insider selling has been notable: Company insiders sold 90,873 shares worth about $1.73 million over the past quarter, while insiders retain 4.88% ownership. Institutional investors and hedge funds collectively own 41.65% of the stock.

Shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) have earned an average rating of "Moderate Buy" from the seven brokerages that are presently covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, four have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $40.00.

Several research analysts recently issued reports on the stock. Wall Street Zen downgraded shares of Zai Lab from a "hold" rating to a "sell" rating in a research report on Saturday, May 16th. Zacks Research upgraded shares of Zai Lab from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 7th. Weiss Ratings raised shares of Zai Lab from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, July 29th. Finally, Citigroup reduced their target price on shares of Zai Lab from $47.00 to $44.00 and set a "buy" rating on the stock in a research report on Friday, May 8th.

Zai Lab Stock Performance

Shares of ZLAB opened at $18.18 on Tuesday. The stock has a fifty day moving average price of $18.59 and a two-hundred day moving average price of $19.22. Zai Lab has a 52-week low of $15.96 and a 52-week high of $39.64. The company has a market cap of $2.07 billion, a price-to-earnings ratio of -11.22 and a beta of 0.78.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last announced its earnings results on Wednesday, April 1st. The company reported ($0.50) EPS for the quarter. Zai Lab had a negative return on equity of 24.32% and a negative net margin of 39.29%.The business had revenue of $99.61 million for the quarter. As a group, research analysts predict that Zai Lab will post -2.23 EPS for the current fiscal year.

Insider Activity at Zai Lab

In related news, CFO Yajing Chen sold 2,264 shares of the business's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $17.46, for a total value of $39,529.44. Following the completion of the transaction, the chief financial officer owned 35,691 shares in the company, valued at $623,164.86. The trade was a 5.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director William Lis sold 7,040 shares of the stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $18.09, for a total value of $127,353.60. Following the completion of the transaction, the director owned 50,437 shares in the company, valued at $912,405.33. The trade was a 12.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 90,873 shares of company stock valued at $1,730,096 over the last quarter. Corporate insiders own 4.88% of the company's stock.

Hedge Funds Weigh In On Zai Lab

An institutional investor recently raised its stake in Zai Lab stock. SG Americas Securities LLC increased its position in Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) by 6.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 10,396 shares of the company's stock after purchasing an additional 642 shares during the quarter. SG Americas Securities LLC's holdings in Zai Lab were worth $183,000 as of its most recent SEC filing. Institutional investors and hedge funds own 41.65% of the company's stock.

About Zai Lab

Zai Lab Ltd NASDAQ: ZLAB is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company's end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company's marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton's tyrosine kinase inhibitor approved for several B-cell malignancies.

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