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

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $35.48, but opened at $34.56. Zai Lab shares last traded at $34.26, with a volume of 90,006 shares changing hands.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on ZLAB shares. Wall Street Zen cut shares of Zai Lab from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. JPMorgan Chase & Co. lifted 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. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Zai Lab in a report on Thursday, March 27th. Finally, Leerink Partners set a $75.00 price target on Zai Lab and gave the stock an "outperform" rating in a report on Monday, June 30th. Two equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to data from MarketBeat.com, Zai Lab has a consensus rating of "Moderate Buy" and a consensus target price of $54.28.

Zai Lab Price Performance

The stock has a market capitalization of $3.64 billion, a P/E ratio of -13.14 and a beta of 0.99. The stock's 50-day simple moving average is $34.09 and its 200 day simple moving average is $31.66.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued 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. Zai Lab had a negative net margin of 60.26% and a negative return on equity of 33.35%. The firm had revenue of $106.49 million during the quarter, compared to the consensus estimate of $118.40 million. As a group, analysts expect that Zai Lab Limited Unsponsored ADR will post -2.58 earnings per share for the current fiscal year.

Insider Activity at Zai Lab

In other Zai Lab news, Director William Lis sold 13,814 shares of the stock in a transaction on Friday, June 20th. The stock was sold at an average price of $35.67, for a total transaction of $492,745.38. Following the transaction, the director owned 35,106 shares in the company, valued at $1,252,231.02. This trade represents a 28.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Ying Du sold 7,072 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $35.23, for a total transaction 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 approximately $18,917,171.26. The trade was a 1.30% decrease in their position. The disclosure for this sale can be found here. Insiders sold 160,155 shares of company stock worth $4,959,535 in the last ninety days. 4.96% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zai Lab

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