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

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 traded.

Wall Street Analysts Forecast Growth

ZLAB has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. upped their price objective on Zai Lab from $44.00 to $51.00 and gave the stock an "overweight" rating in a research note on Thursday, March 13th. Wall Street Zen lowered Zai Lab from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Cantor Fitzgerald reissued an "overweight" rating on shares of Zai Lab in a research note on Thursday, March 27th. Finally, Leerink Partners set a $75.00 price target on Zai Lab and gave the company an "outperform" rating in a research note on Monday, June 30th. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $54.28.

Zai Lab Price Performance

The firm has a fifty day moving average price of $33.86 and a two-hundred day moving average price of $31.52. The stock has a market capitalization of $3.85 billion, a PE ratio of -13.93 and a beta of 0.99.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate 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 firm had revenue of $106.49 million for the quarter, compared to the consensus estimate of $118.40 million. On average, research analysts expect that Zai Lab Limited Unsponsored ADR will post -2.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Ying Du sold 50,000 shares of the firm's stock in a transaction on Tuesday, May 13th. The stock was sold at an average price of $28.57, for a total value of $1,428,500.00. Following the completion of the sale, the chief executive officer owned 479,851 shares of the company's stock, valued at $13,709,343.07. This trade represents a 9.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Yajing Chen sold 9,618 shares of the firm's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $30.00, for a total value of $288,540.00. Following the completion of the sale, the chief financial officer directly owned 17,429 shares of the company's stock, valued at $522,870. The trade was a 35.56% decrease in their position. The disclosure for this sale can be found here. Insiders have 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 Trading of Zai Lab

Several large investors have recently added to or reduced their stakes in the company. Raymond James Financial Inc. purchased a new stake in shares of Zai Lab in the 4th quarter valued at $1,032,000. Oppenheimer Asset Management Inc. purchased a new position in shares of Zai Lab during the 1st quarter valued at about $603,000. BNP Paribas Financial Markets raised its stake in shares of Zai Lab by 1,439.8% during the 4th quarter. BNP Paribas Financial Markets now owns 19,755 shares of the company's stock valued at $517,000 after buying an additional 18,472 shares during the last quarter. FMR LLC raised its stake in shares of Zai Lab by 749.1% during the 4th quarter. FMR LLC now owns 5,475,505 shares of the company's stock valued at $143,403,000 after buying an additional 4,830,646 shares during the last quarter. Finally, US Bancorp DE increased its stake in shares of Zai Lab by 1,671.9% in the 4th quarter. US Bancorp DE now owns 5,865 shares of the company's stock valued at $154,000 after purchasing an additional 5,534 shares in the last quarter. Hedge funds and other institutional investors own 41.65% of the company's stock.

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.

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