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

Key Points

• The stock gapped down sharply, closing at $22.16 yesterday, opening at $19.23 and last trading around $17.34 on volume of 898,114 shares.
• Zenas reported a large quarterly EPS miss of ($4.54) versus the consensus ($1.22), which likely contributed to the sell-off.
• Analysts are mixed — the consensus rating is Hold with an average target of $44.14 (six Buys, one Hold, two Sells) — and insiders bought 202,845 shares last quarter and now own about 22% of the stock.

Shares of Zenas BioPharma, Inc. (NASDAQ:ZBIO - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $22.16, but opened at $19.23. Zenas BioPharma shares last traded at $17.3350, with a volume of 898,114 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Morgan Stanley increased their price objective on Zenas BioPharma from $19.00 to $21.00 and gave the stock an "equal weight" rating in a research note 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 report on Tuesday, January 6th. HC Wainwright reiterated a "buy" rating and set a $44.00 price target on shares of Zenas BioPharma in a report on Tuesday, March 17th. Citigroup lowered their price target on Zenas BioPharma from $43.00 to $41.00 and set a "buy" rating for the company in a research report on Tuesday, March 17th. Finally, Guggenheim lifted their price objective on shares of Zenas BioPharma from $45.00 to $55.00 and gave the stock a "buy" rating in a report on Monday, March 16th. Six analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $44.14.

Zenas BioPharma Stock Performance

The company's 50-day simple moving average is $23.21 and its 200 day simple moving average is $27.26. The stock has a market cap of $992.96 million, a P/E ratio of -2.24 and a beta of -1.94. The company has a current ratio of 5.61, a quick ratio of 5.61 and a debt-to-equity ratio of 0.32.

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

Insider Buying and Selling at Zenas BioPharma

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

Institutional Trading of Zenas BioPharma

Several hedge funds have recently added to or reduced their stakes in ZBIO. Federated Hermes Inc. increased its stake in shares of Zenas BioPharma by 60.8% during the 2nd quarter. Federated Hermes Inc. now owns 1,861,838 shares of the company's stock worth $18,041,000 after purchasing an additional 703,838 shares during the last quarter. PNC Financial Services Group Inc. lifted its stake in Zenas BioPharma by 41.2% in the second quarter. PNC Financial Services Group Inc. now owns 9,179 shares of the company's stock valued at $89,000 after purchasing an additional 2,679 shares during the last quarter. Intech Investment Management LLC grew its holdings in Zenas BioPharma by 13.9% during the second quarter. Intech Investment Management LLC now owns 13,206 shares of the company's stock valued at $128,000 after purchasing an additional 1,607 shares during the period. Polar Capital Holdings Plc purchased a new stake in Zenas BioPharma in the fourth quarter worth $38,402,000. Finally, NEXTBio Capital Management LP purchased a new stake in Zenas BioPharma in the fourth quarter worth $11,691,000.

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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