Zai Lab (NASDAQ:ZLAB) Shares Gap Down - What's Next?

Shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $40.63, but opened at $38.38. Zai Lab shares last traded at $37.78, with a volume of 125,578 shares changing hands.

Wall Street Analyst Weigh In

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

Zai Lab Stock Down 6.4%

The business's fifty day moving average is $32.80 and its 200-day moving average is $30.79.

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

Insider Activity

In other Zai Lab news, insider Frazor Titus Edmondson III sold 4,369 shares of the stock in a transaction on Wednesday, April 2nd. The stock was sold at an average price of $35.89, for a total transaction of $156,803.41. Following the completion of the transaction, the insider now directly owns 27,217 shares of the company's stock, valued at approximately $976,818.13. This represents a 13.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Ying Du sold 50,000 shares of the stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $28.57, for a total transaction of $1,428,500.00. Following the transaction, the chief executive officer now owns 479,851 shares of the company's stock, valued at $13,709,343.07. This represents a 9.44% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 127,207 shares of company stock worth $3,765,009 over the last quarter. 4.96% of the stock is currently owned by corporate insiders.

Institutional Trading of Zai Lab

Hedge funds and other institutional investors have recently made changes to their positions in the stock. GF Fund Management CO. LTD. purchased a new position in shares of Zai Lab during the fourth quarter worth about $29,000. Pictet Asset Management Holding SA purchased a new position in shares of Zai Lab during the fourth quarter valued at about $31,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Zai Lab in the 1st quarter worth about $75,000. Barclays PLC increased its position in Zai Lab by 337.6% during the 4th quarter. Barclays PLC now owns 3,702 shares of the company's stock valued at $97,000 after buying an additional 2,856 shares in the last quarter. Finally, Advisors Preferred LLC bought a new position in shares of Zai Lab in the first quarter worth approximately $110,000. 41.65% of the stock is currently owned by institutional investors.

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.