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

Key Points

• Zai Lab shares gapped down significantly, opening at $30.59 compared to the previous close of $31.49, with the last traded price being $29.38.
• Despite recent negative performance, several analysts maintain positive ratings, with Jefferies setting a "buy" rating and a target price of $52.00, while Citigroup has a target of $69.00.
• Insider sales have been notable, with sell-offs contributing to a total of 215,710 shares sold over the last 90 days, indicating potential concerns among company insiders about stock performance.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $31.49, but opened at $30.59. Zai Lab shares last traded at $29.38, with a volume of 391,341 shares changing hands.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on ZLAB shares. Wall Street Zen downgraded shares of Zai Lab from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Citigroup reissued a "buy" rating and issued a $69.00 price target (up from $66.00) on shares of Zai Lab in a report on Monday, August 11th. Leerink Partners set a $75.00 price target on shares of Zai Lab and gave the company an "outperform" rating in a report on Monday, June 30th. Finally, Jefferies Financial Group started coverage on shares of Zai Lab in a research note on Monday, August 25th. They set a "buy" rating and a $52.00 price objective for the company. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Zai Lab presently has a consensus rating of "Moderate Buy" and a consensus target price of $56.35.

Zai Lab Price Performance

The business has a fifty day moving average of $34.78 and a 200 day moving average of $34.01. The stock has a market cap of $3.67 billion, a price-to-earnings ratio of -16.08 and a beta of 1.04.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.37) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.37). The business had revenue of $109.98 million for the quarter, compared to the consensus estimate of $125.66 million. Zai Lab had a negative net margin of 49.68% and a negative return on equity of 27.32%. Zai Lab has set its FY 2025 guidance at EPS. On average, analysts expect that Zai Lab Limited Unsponsored ADR will post -2.58 EPS for the current year.

Insider Transactions at Zai Lab

In other Zai Lab news, CEO Ying Du sold 50,000 shares of Zai Lab stock in a transaction on Friday, August 8th. The stock was sold at an average price of $34.74, for a total transaction of $1,737,000.00. Following the completion of the transaction, the chief executive officer directly owned 536,962 shares of the company's stock, valued at approximately $18,654,059.88. This trade represents a 8.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joshua L. Smiley acquired 10,000 shares of the business's stock in a transaction on Wednesday, September 10th. The shares were bought at an average cost of $28.91 per share, with a total value of $289,100.00. Following the completion of the acquisition, the insider owned 86,604 shares of the company's stock, valued at approximately $2,503,721.64. This trade represents a 13.05% increase in their position. The disclosure for this purchase can be found here. Insiders sold 215,710 shares of company stock valued at $7,589,684 in the last ninety days. 4.96% of the stock is owned by company insiders.

Institutional Trading of Zai Lab

Hedge funds and other institutional investors have recently made changes to their positions in the business. GF Fund Management CO. LTD. acquired a new stake in shares of Zai Lab in the fourth quarter valued at $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Zai Lab in the first quarter valued at $75,000. Advisors Preferred LLC acquired a new stake in Zai Lab in the first quarter worth about $110,000. Palumbo Wealth Management LLC acquired a new stake in Zai Lab in the first quarter worth about $203,000. Finally, RWC Asset Management LLP acquired a new stake in Zai Lab in the first quarter worth about $222,000. 41.65% of the stock is currently owned by institutional investors and hedge funds.

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.