Zai Lab (NASDAQ:ZLAB) Trading Down 6.2% - Here's What Happened

Key Points

• Zai Lab's stock price fell 6.2% to $29.30, with trading volume significantly below average, at just 101,097 shares compared to a typical volume of 916,640 shares.
• Analysts have mixed opinions on Zai Lab, with Citigroup setting a target price of $69.00 while Weiss Ratings downgraded the stock to a "sell" rating.
• The company's latest quarterly results showed an earnings per share of ($0.37), hitting consensus estimates but falling short of revenue expectations of $125.66 million with actual revenue reported at $109.98 million.

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Get Free Report)'s stock price traded down 6.2% during trading on Tuesday . The company traded as low as $29.04 and last traded at $29.30. 101,097 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 916,640 shares. The stock had previously closed at $31.23.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ZLAB. Citigroup reissued a "buy" rating and issued a $69.00 price target (up from $66.00) on shares of Zai Lab in a report on Monday, August 11th. Wall Street Zen cut shares of Zai Lab from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Leerink Partners set a $75.00 price objective on shares of Zai Lab and gave the company an "outperform" rating in a research note on Monday, June 30th. Jefferies Financial Group assumed coverage on shares of Zai Lab in a research note on Monday, August 25th. They issued a "buy" rating and a $52.00 target price for the company. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Zai Lab in a research note on Wednesday, October 8th. Six research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $56.35.

Zai Lab Price Performance

The business has a fifty day moving average of $33.27 and a 200 day moving average of $33.53. The stock has a market cap of $3.25 billion, a PE ratio of -14.28 and a beta of 1.08.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.37) earnings per share (EPS) for the quarter, hitting 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 during the quarter, compared to analyst estimates of $125.66 million. Zai Lab has set its FY 2025 guidance at EPS. On average, equities research analysts expect that Zai Lab Limited Unsponsored ADR will post -2.58 EPS for the current year.

Insider Transactions at Zai Lab

In related news, CFO Yajing Chen sold 4,096 shares of the business's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $34.01, for a total transaction of $139,304.96. Following the completion of the sale, the chief financial officer owned 16,908 shares of the company's stock, valued at $575,041.08. This represents a 19.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Joshua L. Smiley bought 10,000 shares of the stock in a transaction dated Wednesday, September 10th. The shares were bought at an average cost of $28.91 per share, with a total value of $289,100.00. Following the completion of the acquisition, the insider directly owned 86,604 shares of the company's stock, valued at approximately $2,503,721.64. The trade was a 13.05% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders sold 161,562 shares of company stock worth $5,650,256. 4.96% of the stock is currently owned by corporate 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 stake in Zai Lab in the 1st quarter valued at about $75,000. Advisors Preferred LLC bought a new stake in shares of Zai Lab during the first quarter valued at approximately $110,000. Palumbo Wealth Management LLC acquired a new position in shares of Zai Lab during the first quarter worth approximately $203,000. RWC Asset Management LLP acquired a new position in shares of Zai Lab during the first quarter worth approximately $222,000. Finally, ABC Arbitrage SA bought a new position in Zai Lab in the 1st quarter worth approximately $225,000. Institutional investors and hedge funds own 41.65% of the company's stock.

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.

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