Zai Lab (NASDAQ:ZLAB) Shares Gap Up - Still a Buy?

Key Points

• Zai Lab's share price increased from a previous close of $32.93 to an opening price of $33.97, with the last traded price at $34.46 and a trading volume of 82,968 shares.
• Analysts have varying ratings on Zai Lab, with a consensus price target of $56.35; notable recommendations include a $75.00 price target from Leerink Partners and a downgraded "hold" rating from Wall Street Zen.
• Insider trading activity showed CEO Ying Du sold 50,000 shares for $1.74 million, reducing their ownership stake by 8.52%, while 41.65% of the stock is owned by institutional investors.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $32.93, but opened at $33.97. Zai Lab shares last traded at $34.46, with a volume of 82,968 shares traded.

Analyst Ratings Changes

A number of brokerages have weighed in on ZLAB. 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. Citigroup restated a "buy" rating and issued a $69.00 target price (up from $66.00) on shares of Zai Lab in a research note on Monday, August 11th. Wall Street Zen downgraded Zai Lab from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Finally, Jefferies Financial Group assumed coverage on shares of Zai Lab in a research report on Monday, August 25th. They set a "buy" rating and a $52.00 target price on the stock. Six analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Zai Lab has an average rating of "Moderate Buy" and a consensus price target of $56.35.

Zai Lab Trading Up 3.7%

The business's fifty day simple moving average is $34.27 and its 200-day simple moving average is $33.78. The firm has a market cap of $3.82 billion, a P/E ratio of -16.76 and a beta of 1.04.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.37) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.37). Zai Lab had a negative net margin of 49.68% and a negative return on equity of 27.32%. The business had revenue of $109.98 million for the quarter, compared to analysts' expectations of $125.66 million. Zai Lab has set its FY 2025 guidance at EPS. As a group, research 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, CEO Ying Du sold 50,000 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $34.74, for a total value of $1,737,000.00. Following the completion of the sale, the chief executive officer directly owned 536,962 shares of the company's stock, valued at $18,654,059.88. The trade was a 8.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Rafael Amado sold 3,000 shares of the business's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $35.00, for a total transaction of $105,000.00. Following the completion of the sale, the insider directly owned 42,178 shares of the company's stock, valued at $1,476,230. This represents a 6.64% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 168,634 shares of company stock valued at $5,899,402 over the last ninety days. 4.96% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zai Lab

Several hedge funds and other institutional investors have recently modified their holdings of ZLAB. Caitong International Asset Management Co. Ltd bought a new position in Zai Lab in the first quarter worth about $75,000. Advisors Preferred LLC bought a new position in Zai Lab in the first quarter worth about $110,000. Palumbo Wealth Management LLC bought a new position in Zai Lab in the first quarter worth about $203,000. RWC Asset Management LLP bought a new position in Zai Lab in the first quarter worth about $222,000. Finally, ABC Arbitrage SA purchased a new stake in Zai Lab in the first quarter worth about $225,000. 41.65% of the stock is 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.

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