Zymeworks (NASDAQ:ZYME) Stock Price Expected to Rise, Truist Financial Analyst Says

Key Points

• Truist Financial raised Zymeworks’ price target from $31 to $32 and maintained a “buy” rating, implying 36.62% potential upside. Analysts overall give the stock a “Moderate Buy” consensus rating with a $38 average target.
• Zymeworks reported quarterly revenue of $4.59 million, above expectations, but missed earnings estimates with a loss of $0.62 per share. Revenue fell 90.6% year over year, and the company continues to report negative profitability metrics.
• The company authorized a $125 million share repurchase program, allowing it to buy back up to 7% of outstanding shares. Institutional investors currently own 92.89% of Zymeworks’ stock.

Zymeworks (NASDAQ:ZYME - Get Free Report) had its price objective boosted by stock analysts at Truist Financial from $31.00 to $32.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Truist Financial's price target suggests a potential upside of 36.62% from the company's current price.

Other equities analysts have also issued research reports about the company. Citigroup reiterated a "buy" rating on shares of Zymeworks in a research report on Tuesday, June 30th. HC Wainwright boosted their price target on Zymeworks from $46.00 to $51.00 and gave the stock a "buy" rating in a report on Wednesday. Weiss Ratings restated a "sell (d-)" rating on shares of Zymeworks in a research note on Friday, July 17th. Finally, Wells Fargo & Company reaffirmed an "overweight" rating on shares of Zymeworks in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Zymeworks has a consensus rating of "Moderate Buy" and a consensus price target of $38.00.

Zymeworks Stock Performance

ZYME opened at $23.42 on Friday. The stock has a market cap of $1.71 billion, a price-to-earnings ratio of -17.64 and a beta of 1.15. The firm's fifty day moving average is $24.02 and its 200 day moving average is $24.46. Zymeworks has a fifty-two week low of $11.51 and a fifty-two week high of $29.75.

Zymeworks (NASDAQ:ZYME - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.62) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.57) by ($0.05). The business had revenue of $4.59 million during the quarter, compared to analysts' expectations of $3.81 million. Zymeworks had a negative return on equity of 37.97% and a negative net margin of 126.92%.The company's quarterly revenue was down 90.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.03 EPS. On average, equities research analysts predict that Zymeworks will post 1.36 earnings per share for the current year.

Zymeworks declared that its board has authorized a stock repurchase plan on Thursday, May 14th that permits the company to buyback $125.00 million in shares. This buyback authorization permits the company to buy up to 7% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Janney Montgomery Scott LLC raised its position in Zymeworks by 3.8% during the 1st quarter. Janney Montgomery Scott LLC now owns 11,487 shares of the company's stock valued at $288,000 after purchasing an additional 420 shares in the last quarter. Tema ETFs LLC increased its stake in shares of Zymeworks by 0.7% during the second quarter. Tema ETFs LLC now owns 105,615 shares of the company's stock valued at $2,761,000 after buying an additional 684 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Zymeworks by 25.2% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,637 shares of the company's stock valued at $96,000 after acquiring an additional 731 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in Zymeworks by 10.4% in the first quarter. Allspring Global Investments Holdings LLC now owns 8,507 shares of the company's stock worth $221,000 after acquiring an additional 800 shares during the period. Finally, Russell Investments Group Ltd. lifted its stake in Zymeworks by 1.6% in the fourth quarter. Russell Investments Group Ltd. now owns 58,350 shares of the company's stock worth $1,536,000 after acquiring an additional 902 shares during the period. 92.89% of the stock is currently owned by institutional investors.

About Zymeworks

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks' innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.

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