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

Key Points

• Zai Lab shares gapped down, opening at $25.00 after closing at $26.00, and last traded near $25.21.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $40.20, despite mixed recent upgrades and downgrades.
• The company reported a quarterly loss of $0.50 per share on $106.31 million in revenue, while insiders have sold 90,873 shares worth approximately $1.73 million over the past 90 days.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $26.00, but opened at $25.00. Zai Lab shares last traded at $25.2050, with a volume of 264,227 shares changing hands.

Analysts Set New Price Targets

Several equities analysts recently weighed in on ZLAB shares. Zacks Research raised Zai Lab from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 7th. Weiss Ratings upgraded Zai Lab from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, July 29th. Citigroup upped their target price on Zai Lab from $44.00 to $45.00 and gave the company a "buy" rating in a report on Friday, August 7th. Finally, Wall Street Zen downgraded Zai Lab from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Zai Lab currently has a consensus rating of "Moderate Buy" and an average target price of $40.20.

Zai Lab Price Performance

The stock's 50-day moving average is $19.06 and its 200-day moving average is $19.34. The stock has a market cap of $2.90 billion, a price-to-earnings ratio of -14.92 and a beta of 0.78.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The company reported ($0.50) earnings per share for the quarter. Zai Lab had a negative net margin of 41.86% and a negative return on equity of 27.43%. The business had revenue of $106.31 million during the quarter. Analysts predict that Zai Lab Limited Unsponsored ADR will post -2.17 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Ying Du sold 50,000 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $20.09, for a total transaction of $1,004,500.00. Following the transaction, the chief executive officer directly owned 1,122,626 shares in the company, valued at $22,553,556.34. This represents a 4.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Yajing Chen sold 2,264 shares of the business's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $17.46, for a total transaction of $39,529.44. Following the completion of the sale, the chief financial officer owned 35,691 shares of the company's stock, valued at approximately $623,164.86. The trade was a 5.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 90,873 shares of company stock worth $1,730,096. 4.88% of the stock is owned by company insiders.

Institutional Trading of Zai Lab

A hedge fund recently raised its position in Zai Lab stock. Royal Bank of Canada boosted its holdings in Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) by 214.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 13,771 shares of the company's stock after buying an additional 9,390 shares during the period. Royal Bank of Canada's holdings in Zai Lab were worth $498,000 as of its most recent SEC filing. Institutional investors own 41.65% of the company's stock.

About Zai Lab

Zai Lab Ltd NASDAQ: ZLAB is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company's end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company's marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton's tyrosine kinase inhibitor approved for several B-cell malignancies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source