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

Zai Lab Limited (NASDAQ:ZLAB - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $32.43, but opened at $31.46. Zai Lab shares last traded at $31.36, with a volume of 41,314 shares.

Analysts Set New Price Targets

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

Zai Lab Stock Performance

The firm has a market capitalization of $3.43 billion, a P/E ratio of -11.26 and a beta of 1.04. The firm's 50-day moving average is $33.20 and its 200 day moving average is $29.73.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its quarterly earnings results on Thursday, February 27th. The company reported ($0.80) EPS for the quarter, missing analysts' consensus estimates of ($0.61) by ($0.19). The firm had revenue of $109.07 million during the quarter, compared to the consensus estimate of $110.15 million. Zai Lab had a negative net margin of 76.14% and a negative return on equity of 36.97%. As a group, research analysts expect that Zai Lab Limited will post -2.58 EPS for the current fiscal year.

Insider Transactions at Zai Lab

In other news, CEO Ying Du sold 50,000 shares of the firm's stock in a transaction dated Friday, February 28th. The stock was sold at an average price of $34.47, for a total value of $1,723,500.00. Following the completion of the transaction, the chief executive officer now owns 494,117 shares in the company, valued at $17,032,212.99. This trade represents a 9.19 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Yajing Chen sold 924 shares of the company's stock in a transaction dated Friday, April 4th. The stock was sold at an average price of $33.11, for a total value of $30,593.64. Following the sale, the chief financial officer now owns 27,047 shares in the company, valued at $895,526.17. The trade was a 3.30 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 138,744 shares of company stock valued at $4,685,294 in the last ninety days. 13.88% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zai Lab

Several hedge funds and other institutional investors have recently made changes to their positions in ZLAB. GF Fund Management CO. LTD. acquired a new stake in Zai Lab in the fourth quarter valued at $29,000. Pictet Asset Management Holding SA acquired a new stake in Zai Lab in the 4th quarter valued at about $31,000. Barclays PLC grew its holdings in Zai Lab by 337.6% during the fourth quarter. Barclays PLC now owns 3,702 shares of the company's stock worth $97,000 after purchasing an additional 2,856 shares during the period. US Bancorp DE grew its holdings in Zai Lab by 1,671.9% during the fourth quarter. US Bancorp DE now owns 5,865 shares of the company's stock worth $154,000 after purchasing an additional 5,534 shares during the period. Finally, Palumbo Wealth Management LLC acquired a new position in Zai Lab during the first quarter worth approximately $203,000. 41.65% of the stock is owned by institutional investors.

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.