Zai Lab (NASDAQ:ZLAB) Trading Down 5.2% - Here's What Happened

Key Points

• Zai Lab shares fell 5.2% on Wednesday to about $23.18, with trading volume of 307,419 shares—roughly 60% below the average session volume.
• Analyst views are mixed but generally positive: MarketBeat shows an average rating of "Moderate Buy" and an average price target of $50, while recent broker notes range from a Weiss "sell (d-)" to Jefferies "strong-buy" and UBS initiating with a $35 target.
• The company reported a quarterly loss of ($0.50) EPS, negative margins and ROE, and insiders have been selling recently (two executives sold ~14,800 shares on April 2 and insiders sold 46,187 shares in the last 90 days).

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report)'s stock price fell 5.2% on Wednesday . The company traded as low as $23.15 and last traded at $23.1760. 307,419 shares traded hands during trading, a decline of 60% from the average session volume of 772,444 shares. The stock had previously closed at $24.44.

Analyst Ratings Changes

Several brokerages recently commented on ZLAB. UBS Group assumed coverage on shares of Zai Lab in a research note on Wednesday, January 7th. They issued a "buy" rating and a $35.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Zai Lab in a report on Wednesday, January 21st. Jefferies Financial Group upgraded Zai Lab to a "strong-buy" rating in a report on Monday, January 19th. Cantor Fitzgerald reduced their price objective on Zai Lab from $55.00 to $37.00 and set an "overweight" rating for the company in a report on Friday, February 27th. Finally, JPMorgan Chase & Co. lowered their target price on Zai Lab from $39.00 to $32.00 and set an "overweight" rating on the stock in a report on Wednesday, March 18th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Zai Lab has an average rating of "Moderate Buy" and an average price target of $50.00.

Zai Lab Price Performance

The firm has a market capitalization of $2.60 billion, a PE ratio of -14.22 and a beta of 0.86. The company has a 50-day moving average price of $19.87 and a 200-day moving average price of $20.78.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last announced its earnings results on Saturday, February 14th. The company reported ($0.50) earnings per share for the quarter. Zai Lab had a negative net margin of 38.15% and a negative return on equity of 22.81%. The firm had revenue of $127.60 million during the quarter. On average, research analysts predict that Zai Lab Limited Unsponsored ADR will post -2.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Zai Lab

In related news, insider Joshua L. Smiley sold 9,614 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $20.39, for a total transaction of $196,029.46. Following the sale, the insider owned 120,619 shares in the company, valued at approximately $2,459,421.41. This trade represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Yajing Chen sold 5,199 shares of Zai Lab stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $20.39, for a total transaction of $106,007.61. Following the completion of the sale, the chief financial officer directly owned 32,558 shares of the company's stock, valued at $663,857.62. The trade was a 13.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 46,187 shares of company stock valued at $930,647. 4.96% of the stock is owned by corporate insiders.

Institutional Trading of Zai Lab

A hedge fund recently bought a new stake in Zai Lab stock. SG Americas Securities LLC bought a new position in Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 9,754 shares of the company's stock, valued at approximately $331,000. 41.65% of the stock is owned by institutional investors.

Zai Lab Company Profile

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.

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