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

Key Points

• Eight brokerages give Zai Lab a consensus "Moderate Buy" (2 sell, 5 buy, 1 strong buy) with an average 1‑year price target of $50.00.
• Notable insider activity: Director Richard Gaynor bought 1,731 shares at $18.91 (increasing his stake to 56,630 shares), while CEO Ying Du sold 2,653 shares at $20.45 to cover tax withholding; insiders sold 46,187 shares (~$930,647) last quarter and now own 4.96% of the company.
• Shares opened at $22.77 with a 52‑week range of $15.96–$44.34 and a market cap of $2.58B; Zai Lab reported a quarterly EPS of ($0.50), a negative net margin of 38.15%, and analysts forecast roughly -2.03 EPS for the current year.

Shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eight brokerages that are presently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $50.00.

Several research firms have weighed in on ZLAB. JPMorgan Chase & Co. lowered their target price on Zai Lab from $39.00 to $32.00 and set an "overweight" rating on the stock in a research note on Wednesday, March 18th. Jefferies Financial Group upgraded Zai Lab to a "strong-buy" rating in a report on Monday, January 19th. Weiss Ratings upgraded Zai Lab from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday. UBS Group initiated coverage on Zai Lab in a report on Wednesday, January 7th. They set a "buy" rating and a $35.00 price target for the company. Finally, Zacks Research lowered Zai Lab from a "hold" rating to a "strong sell" rating in a report on Friday, January 23rd.

Insider Buying and Selling at Zai Lab

In other news, Director Richard Gaynor purchased 1,731 shares of Zai Lab stock in a transaction dated Tuesday, March 17th. The stock was acquired at an average cost of $18.91 per share, for a total transaction of $32,733.21. Following the acquisition, the director directly owned 56,630 shares in the company, valued at $1,070,873.30. This represents a 3.15% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Ying Du sold 2,653 shares of Zai Lab stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $20.45, for a total value of $54,253.85. Following the sale, the chief executive officer owned 1,122,626 shares of the company's stock, valued at approximately $22,957,701.70. This represents a 0.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 46,187 shares of company stock worth $930,647 over the last quarter. Insiders own 4.96% of the company's stock.

Institutional Investors Weigh In On Zai Lab

A hedge fund recently raised its stake in Zai Lab stock. SG Americas Securities LLC increased its stake in Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) by 6.6% in the 4th quarter, according to the company in its most recent filing with the SEC. The fund 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 at the end of the most recent reporting period. Institutional investors and hedge funds own 41.65% of the company's stock.

Zai Lab Price Performance

NASDAQ:ZLAB opened at $22.77 on Friday. Zai Lab has a fifty-two week low of $15.96 and a fifty-two week high of $44.34. The stock's 50-day moving average is $20.06 and its two-hundred day moving average is $20.65. The stock has a market cap of $2.58 billion, a PE ratio of -14.14 and a beta of 0.86.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last released its earnings results on Saturday, February 14th. The company reported ($0.50) earnings per share for the quarter. Zai Lab had a negative net margin of 38.15% and a negative return on equity of 22.81%. The business had revenue of $127.60 million for the quarter. On average, equities research analysts anticipate that Zai Lab will post -2.03 earnings per share for the current year.

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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