Zai Lab (NASDAQ:ZLAB) Shares Gap Down - Should You Sell?

Shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $36.01, but opened at $35.15. Zai Lab shares last traded at $34.59, with a volume of 89,278 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on ZLAB shares. Leerink Partners set a $75.00 price objective on Zai Lab and gave the stock an "outperform" rating in a research report on Monday, June 30th. Wall Street Zen cut shares of Zai Lab from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of Zai Lab in a research note on Thursday, March 27th. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $54.28.

Zai Lab Price Performance

The firm has a fifty day simple moving average of $34.64 and a 200-day simple moving average of $32.03. The firm has a market cap of $3.86 billion, a P/E ratio of -13.94 and a beta of 0.99.

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

Insider Transactions at Zai Lab

In other news, CEO Ying Du sold 7,072 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $35.23, for a total value of $249,146.56. Following the completion of the sale, the chief executive officer directly owned 536,962 shares of the company's stock, valued at $18,917,171.26. This represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director William Lis sold 13,814 shares of the stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $35.67, for a total value of $492,745.38. Following the completion of the sale, the director directly owned 35,106 shares of the company's stock, valued at approximately $1,252,231.02. This trade represents a 28.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 160,155 shares of company stock valued at $4,959,535 over the last ninety days. 4.96% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zai Lab

Several institutional investors have recently bought and sold shares of ZLAB. GF Fund Management CO. LTD. bought a new position in shares of Zai Lab during the fourth quarter valued at approximately $29,000. Pictet Asset Management Holding SA purchased a new stake in shares of Zai Lab in the fourth quarter worth about $31,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Zai Lab in the first quarter worth about $75,000. Barclays PLC raised its holdings in shares of Zai Lab by 337.6% in the fourth quarter. Barclays PLC now owns 3,702 shares of the company's stock worth $97,000 after buying an additional 2,856 shares during the period. Finally, Advisors Preferred LLC purchased a new stake in shares of Zai Lab in the first quarter worth approximately $110,000. 41.65% of the stock is currently owned by hedge funds and other 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.