Zai Lab (NASDAQ:ZLAB) Shares Gap Up - Should You Buy?

Zai Lab Limited (NASDAQ:ZLAB - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $41.40, but opened at $42.39. Zai Lab shares last traded at $43.42, with a volume of 284,453 shares traded.

Analysts Set New Price Targets

Several research firms have recently issued reports on ZLAB. Cantor Fitzgerald restated an "overweight" rating on shares of Zai Lab in a report on Thursday, March 27th. Bank of America restated a "neutral" rating and set a $36.10 price objective (up previously from $29.00) on shares of Zai Lab in a report on Monday, March 3rd. JPMorgan Chase & Co. boosted their price objective on shares of Zai Lab from $44.00 to $51.00 and gave the stock an "overweight" rating in a report on Thursday, March 13th. Finally, Scotiabank began coverage on shares of Zai Lab in a report on Friday, March 7th. They set a "sector outperform" rating and a $55.00 price objective on the stock.

Zai Lab Price Performance

The firm has a market cap of $4.75 billion, a P/E ratio of -15.53 and a beta of 0.96. The stock's 50 day moving average is $31.50 and its two-hundred day moving average is $30.41.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported ($0.45) earnings per share for the quarter, beating analysts' consensus estimates of ($0.50) by $0.05. The business had revenue of $106.49 million for the quarter, compared to analysts' expectations of $118.40 million. Zai Lab had a negative net margin of 76.14% and a negative return on equity of 36.97%. As a group, research analysts forecast that Zai Lab Limited will post -2.58 EPS for the current fiscal year.

Insider Activity at Zai Lab

In other Zai Lab news, CFO Yajing Chen sold 9,618 shares of the business's stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $30.00, for a total value of $288,540.00. Following the transaction, the chief financial officer now directly owns 17,429 shares in the company, valued at $522,870. The trade was a 35.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Frazor Titus Edmondson III sold 4,369 shares of the business's stock in a transaction dated Wednesday, April 2nd. The shares were sold at an average price of $35.89, for a total transaction of $156,803.41. Following the completion of the transaction, the insider now owns 27,217 shares in the company, valued at approximately $976,818.13. This trade represents a 13.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 130,207 shares of company stock valued at $3,880,239 over the last quarter. 4.96% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zai Lab

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Kingsview Wealth Management LLC boosted its position in Zai Lab by 6.0% in the first quarter. Kingsview Wealth Management LLC now owns 9,323 shares of the company's stock valued at $337,000 after buying an additional 529 shares in the last quarter. GF Fund Management CO. LTD. acquired a new position in Zai Lab in the fourth quarter valued at about $29,000. Pictet Asset Management Holding SA acquired a new position in Zai Lab in the fourth quarter valued at about $31,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Zai Lab by 2.1% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 57,114 shares of the company's stock valued at $1,496,000 after buying an additional 1,200 shares in the last quarter. Finally, Walleye Capital LLC boosted its position in Zai Lab by 6.4% in the first quarter. Walleye Capital LLC now owns 22,276 shares of the company's stock valued at $805,000 after buying an additional 1,338 shares in the last quarter. 41.65% of the stock is currently owned by institutional investors and hedge funds.

About Zai Lab

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.