Zai Lab (NASDAQ:ZLAB) Shares Down 5.4% - Time to Sell?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) shares were down 5.4% on Friday . The company traded as low as $34.85 and last traded at $34.95. Approximately 236,177 shares changed hands during trading, a decline of 78% from the average daily volume of 1,060,222 shares. The stock had previously closed at $36.93.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ZLAB. JPMorgan Chase & Co. increased their target price on shares of Zai Lab from $44.00 to $51.00 and gave the stock an "overweight" rating in a report on Thursday, March 13th. Bank of America reissued a "neutral" rating and issued a $36.10 price objective (up from $29.00) on shares of Zai Lab in a report on Monday, March 3rd. Scotiabank started coverage on shares of Zai Lab in a report on Friday, March 7th. They set a "sector outperform" rating and a $55.00 price objective on the stock. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Zai Lab in a research note on Thursday, March 27th.

Zai Lab Stock Down 5.7%

The stock has a 50-day moving average of $32.70 and a 200 day moving average of $30.76. The stock has a market cap of $3.84 billion, a PE ratio of -14.03 and a beta of 0.96.

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

Insider Activity at Zai Lab

In related news, insider Frazor Titus Edmondson III sold 4,369 shares of Zai Lab stock in a transaction that occurred on Wednesday, April 2nd. The shares were sold at an average price of $35.89, for a total value of $156,803.41. Following the completion of the sale, the insider now owns 27,217 shares in the company, valued at approximately $976,818.13. This trade represents a 13.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Yajing Chen sold 5,280 shares of the firm's stock in a transaction on Wednesday, April 2nd. The stock was sold at an average price of $35.89, for a total value of $189,499.20. Following the transaction, the chief financial officer now owns 25,471 shares of the company's stock, valued at approximately $914,154.19. This represents a 17.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 127,207 shares of company stock worth $3,765,009. Insiders own 4.96% of the company's stock.

Institutional Trading of Zai Lab

Several hedge funds have recently modified their holdings of the stock. GF Fund Management CO. LTD. purchased a new position in shares of Zai Lab in the 4th quarter valued at about $29,000. Pictet Asset Management Holding SA acquired a new position in Zai Lab during the 4th quarter worth approximately $31,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Zai Lab in the 1st quarter valued at approximately $75,000. Advisors Preferred LLC acquired a new stake in shares of Zai Lab in the 1st quarter valued at $110,000. Finally, Barclays PLC increased its holdings in shares of Zai Lab by 337.6% in the 4th 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. 41.65% of the stock is currently owned by institutional investors and hedge funds.

About Zai Lab

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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