Zai Lab (NASDAQ:ZLAB) Given New $44.00 Price Target at Citigroup

Key Points

• Citigroup cut its price target on Zai Lab from $47 to $44 but kept a buy rating, implying substantial upside from the prior close.
• The stock fell 5.8% to $18.62, with trading volume above average; Zai Lab now sits well below its 52-week high of $44.34.
• The company reported a quarterly loss of $0.50 per share on revenue of $99.61 million, while analysts on average still rate the stock Moderate Buy with a consensus target of $45.83.

Zai Lab (NASDAQ:ZLAB - Get Free Report) had its price objective decreased by equities research analysts at Citigroup from $47.00 to $44.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's price target would indicate a potential upside of 136.29% from the company's previous close.

Several other equities research analysts have also issued reports on ZLAB. JPMorgan Chase & Co. lowered their price target on shares of Zai Lab from $39.00 to $32.00 and set an "overweight" rating on the stock in a report on Wednesday, March 18th. Zacks Research lowered shares of Zai Lab from a "hold" rating to a "strong sell" rating in a report on Friday, January 23rd. Weiss Ratings raised shares of Zai Lab from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, April 24th. Cantor Fitzgerald lowered their price target on shares of Zai Lab from $55.00 to $37.00 and set an "overweight" rating on the stock in a report on Friday, February 27th. Finally, Jefferies Financial Group raised shares of Zai Lab to a "strong-buy" rating in a report on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $45.83.

Zai Lab Trading Down 5.8%

ZLAB traded down $1.14 on Friday, hitting $18.62. 1,045,271 shares of the stock traded hands, compared to its average volume of 760,316. Zai Lab has a 52 week low of $15.96 and a 52 week high of $44.34. The firm has a market capitalization of $2.11 billion, a PE ratio of -11.58 and a beta of 0.85. The business has a fifty day moving average price of $20.23 and a two-hundred day moving average price of $20.12.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its quarterly earnings results on Wednesday, April 1st. The company reported ($0.50) earnings per share (EPS) for the quarter. Zai Lab had a negative net margin of 38.15% and a negative return on equity of 22.81%. The firm had revenue of $99.61 million for the quarter. On average, equities research analysts forecast that Zai Lab will post -2.07 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Joshua L. Smiley sold 3,017 shares of the company's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $20.45, for a total value of $61,697.65. Following the sale, the insider owned 117,602 shares of the company's stock, valued at approximately $2,404,960.90. This represents a 2.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ying Du sold 2,653 shares of the company's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $20.45, for a total transaction of $54,253.85. Following the completion of the sale, the chief executive officer directly owned 1,122,626 shares in the company, valued at approximately $22,957,701.70. The trade was a 0.24% decrease in their position. 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 have sold 46,187 shares of company stock worth $930,647 in the last quarter. 4.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zai Lab

A hedge fund recently bought a new stake in Zai Lab stock. SG Americas Securities LLC purchased a new position in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) during the 3rd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 9,754 shares of the company's stock, valued at approximately $331,000. Institutional investors and hedge funds own 41.65% of the company's stock.

Zai Lab Company Profile

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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