Zymeworks (NASDAQ:ZYME) Trading Down 8.9% After Earnings Miss

Key Points

• Zymeworks shares fell 8.9% after the company reported EPS of ($0.59) versus analysts' ($0.10) estimate and revenue of $2.41 million versus a $24.38 million estimate, a 91.1% year‑over‑year revenue decline.
• Despite the earnings miss, analysts remain generally positive with a consensus rating of Moderate Buy and an average price target of $38, alongside several recent upgrades and raised price targets.
• Intraday trading dropped to about 241,941 shares (down ~65% from the average session volume) as the stock traded as low as $24.18, and institutional investors hold roughly 92.9% of the company.

Zymeworks Inc. (NASDAQ:ZYME - Get Free Report)'s share price fell 8.9% during trading on Friday following a dissappointing earnings announcement. The company traded as low as $24.18 and last traded at $24.2330. 241,941 shares were traded during mid-day trading, a decline of 65% from the average session volume of 700,150 shares. The stock had previously closed at $26.60.

The company reported ($0.59) EPS for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.49). Zymeworks had a negative return on equity of 26.00% and a negative net margin of 76.56%.The firm had revenue of $2.41 million during the quarter, compared to analyst estimates of $24.38 million. During the same quarter in the prior year, the firm earned ($0.30) EPS. The business's quarterly revenue was down 91.1% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Truist Financial raised shares of Zymeworks to a "strong-buy" rating in a report on Monday, April 27th. Wells Fargo & Company increased their price objective on shares of Zymeworks from $33.00 to $34.00 and gave the company an "overweight" rating in a report on Friday. Weiss Ratings restated a "sell (d-)" rating on shares of Zymeworks in a research report on Monday, April 20th. Stifel Nicolaus boosted their price objective on Zymeworks from $40.00 to $47.00 and gave the stock a "buy" rating in a research note on Tuesday, March 3rd. Finally, Leerink Partners upped their price target on Zymeworks from $52.00 to $58.00 and gave the company an "outperform" rating in a report on Tuesday, March 3rd. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Zymeworks has a consensus rating of "Moderate Buy" and an average target price of $38.00.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Janney Montgomery Scott LLC raised its holdings in Zymeworks by 3.8% in the 1st quarter. Janney Montgomery Scott LLC now owns 11,487 shares of the company's stock valued at $288,000 after acquiring an additional 420 shares in the last quarter. Federated Hermes Inc. raised its holdings in shares of Zymeworks by 0.3% during the third quarter. Federated Hermes Inc. now owns 182,847 shares of the company's stock valued at $3,123,000 after purchasing an additional 577 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Zymeworks by 25.2% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,637 shares of the company's stock worth $96,000 after acquiring an additional 731 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in shares of Zymeworks by 10.4% in the first quarter. Allspring Global Investments Holdings LLC now owns 8,507 shares of the company's stock valued at $221,000 after buying an additional 800 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in shares of Zymeworks by 1.6% in the 4th 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 last quarter. 92.89% of the stock is currently owned by institutional investors.

Zymeworks Stock Performance

The firm has a market cap of $1.77 billion, a price-to-earnings ratio of -22.27 and a beta of 1.20. The business has a 50 day simple moving average of $25.62 and a 200-day simple moving average of $24.06.

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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