Zenas BioPharma (NASDAQ:ZBIO) Shares Down 7.5% - Should You Sell?

Key Points

• Shares fell 7.5% to $20.62 on Monday with volume about 68% below average, following a large quarterly EPS miss of ($4.54) versus the ($1.22) consensus.
• Analysts are mixed — six Buys, one Hold and two Sells — producing a MarketBeat consensus of Hold and an average target price of $44.14, with individual targets roughly between $19 and $48.
• Insiders purchased 202,845 shares (≈$3.75M) in the last three months and now own about 22% of the company, signaling notable insider accumulation.

Zenas BioPharma, Inc. (NASDAQ:ZBIO - Get Free Report)'s share price fell 7.5% during trading on Monday . The stock traded as low as $20.88 and last traded at $20.6240. 293,656 shares changed hands during trading, a decline of 68% from the average session volume of 924,910 shares. The stock had previously closed at $22.30.

Analysts Set New Price Targets

ZBIO has been the subject of several research reports. Citigroup decreased their price target on shares of Zenas BioPharma from $43.00 to $41.00 and set a "buy" rating for the company in a research note on Tuesday, March 17th. Morgan Stanley upped their price objective on shares of Zenas BioPharma from $19.00 to $21.00 and gave the stock an "equal weight" rating in a report on Tuesday, March 17th. Jefferies Financial Group reaffirmed a "buy" rating and set a $48.00 target price on shares of Zenas BioPharma in a research note on Tuesday, January 6th. HC Wainwright reissued a "buy" rating and issued a $44.00 price target on shares of Zenas BioPharma in a research report on Tuesday, March 17th. Finally, Wedbush reaffirmed an "outperform" rating and set a $45.00 price objective on shares of Zenas BioPharma in a research report on Monday, December 22nd. Six investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $44.14.

Zenas BioPharma Price Performance

The firm's fifty day simple moving average is $23.17 and its 200-day simple moving average is $27.30. The company has a quick ratio of 5.61, a current ratio of 5.61 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $1.17 billion, a PE ratio of -2.62 and a beta of -1.96.

Zenas BioPharma (NASDAQ:ZBIO - Get Free Report) last posted its quarterly earnings results on Monday, March 16th. The company reported ($4.54) earnings per share for the quarter, missing the consensus estimate of ($1.22) by ($3.32).

Insider Activity

In related news, Director Hongbo Lu acquired 25,985 shares of the stock in a transaction that occurred on Wednesday, February 11th. The shares were bought at an average price of $22.50 per share, for a total transaction of $584,662.50. Following the completion of the transaction, the director directly owned 347,968 shares in the company, valued at approximately $7,829,280. This trade represents a 8.07% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Patricia L. Allen bought 15,700 shares of the company's stock in a transaction that occurred on Thursday, February 12th. The stock was bought at an average price of $24.85 per share, for a total transaction of $390,145.00. Following the acquisition, the director directly owned 15,700 shares of the company's stock, valued at $390,145. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 202,845 shares of company stock valued at $3,747,185 over the last three months. Insiders own 22.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. GF Fund Management CO. LTD. purchased a new stake in shares of Zenas BioPharma during the 4th quarter valued at about $38,000. Quarry LP boosted its holdings in shares of Zenas BioPharma by 34.5% in the third quarter. Quarry LP now owns 1,134 shares of the company's stock worth $25,000 after buying an additional 291 shares during the last quarter. Russell Investments Group Ltd. bought a new stake in Zenas BioPharma during the third quarter valued at approximately $30,000. CWM LLC increased its holdings in Zenas BioPharma by 48.3% during the fourth quarter. CWM LLC now owns 2,178 shares of the company's stock valued at $79,000 after buying an additional 709 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in Zenas BioPharma in the fourth quarter worth approximately $95,000.

About Zenas BioPharma

Zenas BioPharma, Inc is a clinical-stage biotechnology company focused on the discovery and development of novel therapies in oncology and infectious diseases. The company's proprietary platform integrates structure-guided design, computational modeling and high-throughput screening to address challenging protein-protein interactions. Zenas BioPharma is advancing multiple preclinical and clinical-stage candidates aimed at providing new treatment options where current modalities may be limited by efficacy or safety concerns.

Founded in 2021 and headquartered in Cambridge, Massachusetts, Zenas BioPharma was built to streamline the drug discovery process from target identification through to IND-enabling studies.

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