Zai Lab (NASDAQ:ZLAB) Stock Price Down 5.8% - Here's What Happened

Key Points

• Zai Lab's stock fell by 5.8% to $31.40, significantly below its previous close of $33.34, with trading volumes down 59% from average levels.
• Several analysts have rated Zai Lab with a consensus of "Moderate Buy" and set an average price target of $56.35, despite recent mixed coverage from research firms.
• Insider transactions revealed that CEO Ying Du and CFO Yajing Chen sold shares worth over $1.8 million collectively, indicating a decrease in their ownership stake in the company.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report) fell 5.8% on Wednesday . The stock traded as low as $31.59 and last traded at $31.40. 385,305 shares traded hands during mid-day trading, a decline of 59% from the average session volume of 948,047 shares. The stock had previously closed at $33.34.

Wall Street Analyst Weigh In

Several research firms have weighed in on ZLAB. Jefferies Financial Group started coverage on Zai Lab in a report on Monday, August 25th. They issued a "buy" rating and a $52.00 price objective for the company. Leerink Partners set a $75.00 price target on Zai Lab and gave the stock an "outperform" rating in a research note on Monday, June 30th. Wall Street Zen cut shares of Zai Lab from a "buy" rating to a "hold" rating in a research report on Friday, June 27th. Finally, Citigroup reaffirmed a "buy" rating and issued a $69.00 target price (up from $66.00) on shares of Zai Lab in a research report on Monday, August 11th. Six research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $56.35.

Zai Lab Stock Performance

The stock has a market cap of $3.52 billion, a PE ratio of -15.45 and a beta of 1.04. The firm has a 50-day moving average price of $35.54 and a 200-day moving average price of $34.06.

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, hitting the consensus estimate 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 during the quarter, compared to analysts' expectations of $125.66 million. Zai Lab has set its FY 2025 guidance at EPS. As a group, sell-side analysts anticipate that Zai Lab Limited Unsponsored ADR will post -2.58 EPS for the current fiscal year.

Insider Transactions at Zai Lab

In other news, CEO Ying Du sold 50,000 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $34.74, for a total transaction of $1,737,000.00. Following the completion of the transaction, 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 Securities & Exchange Commission, which is available at the SEC website. Also, CFO Yajing Chen sold 4,096 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $34.01, for a total transaction of $139,304.96. Following the transaction, the chief financial officer directly owned 16,908 shares of the company's stock, valued at $575,041.08. The trade was a 19.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 215,710 shares of company stock valued at $7,589,684. Insiders own 4.96% of the company's stock.

Institutional Trading of Zai Lab

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Oppenheimer Asset Management Inc. purchased a new stake in Zai Lab during the first quarter valued at approximately $603,000. BNP Paribas Financial Markets increased its stake in shares of Zai Lab by 1,439.8% in the 4th quarter. BNP Paribas Financial Markets now owns 19,755 shares of the company's stock worth $517,000 after purchasing an additional 18,472 shares in the last quarter. Northern Trust Corp increased its stake in shares of Zai Lab by 117.8% in the 4th quarter. Northern Trust Corp now owns 49,365 shares of the company's stock worth $1,293,000 after purchasing an additional 26,700 shares in the last quarter. Cerity Partners LLC purchased a new stake in shares of Zai Lab in the 1st quarter worth $420,000. Finally, Bank of New York Mellon Corp purchased a new stake in Zai Lab in the first quarter worth about $297,000. 41.65% of the stock is owned by hedge funds and other 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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