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

Key Points

• Zai Lab Limited's stock has received a consensus rating of "Moderate Buy" from five analysts, with an average twelve-month target price of $54.28.
• Insider activity revealed that CEO Ying Du and Director William Lis collectively sold a significant number of shares, indicating a decrease in their ownership percentages of the company.
• The company's recent quarterly earnings showed a loss per share of ($0.45), which was better than analysts' estimates, but revenue fell short of expectations at $106.49 million.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) has received a consensus rating of "Moderate Buy" from the five analysts that are presently covering the company, MarketBeat reports. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $54.28.

A number of brokerages have commented on ZLAB. Cantor Fitzgerald restated an "overweight" rating on shares of Zai Lab in a research note on Thursday, March 27th. Leerink Partners set a $75.00 price target on shares of Zai Lab and gave the company an "outperform" rating in a research note on Monday, June 30th. Finally, Wall Street Zen lowered shares of Zai Lab from a "buy" rating to a "hold" rating in a research note on Friday, June 27th.

Insider Activity

In other news, CEO Ying Du sold 7,072 shares of the company's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $35.23, for a total transaction of $249,146.56. Following the sale, the chief executive officer directly owned 536,962 shares in the company, valued at $18,917,171.26. This represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director William Lis sold 13,814 shares of the company's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $35.67, for a total value of $492,745.38. Following the sale, the director owned 35,106 shares in the company, valued at approximately $1,252,231.02. This represents a 28.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 160,155 shares of company stock worth $4,959,535 over the last ninety days. Company insiders own 4.96% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. GF Fund Management CO. LTD. bought a new position in Zai Lab during the fourth quarter valued at approximately $29,000. Pictet Asset Management Holding SA bought a new position in Zai Lab during the fourth quarter valued at approximately $31,000. Caitong International Asset Management Co. Ltd bought a new position in Zai Lab during the first quarter valued at approximately $75,000. Barclays PLC grew its position in Zai Lab by 337.6% during the fourth quarter. Barclays PLC now owns 3,702 shares of the company's stock valued at $97,000 after acquiring an additional 2,856 shares during the last quarter. Finally, Advisors Preferred LLC bought a new position in Zai Lab during the first quarter valued at approximately $110,000. 41.65% of the stock is currently owned by institutional investors.

Zai Lab Price Performance

NASDAQ:ZLAB opened at $37.77 on Friday. The company has a market cap of $4.20 billion, a PE ratio of -15.17 and a beta of 0.99. Zai Lab has a one year low of $16.01 and a one year high of $44.34. The firm's 50 day simple moving average is $35.28 and its 200 day simple moving average is $32.26.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The company reported ($0.45) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.50) by $0.05. The firm had revenue of $106.49 million for the quarter, compared to the consensus estimate of $118.40 million. Zai Lab had a negative net margin of 60.26% and a negative return on equity of 33.35%. Equities research analysts expect that Zai Lab will post -2.58 EPS for the current year.

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.

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