Zai Lab (NASDAQ:ZLAB) Shares Gap Down – Should You Sell?

Shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) gapped down before the market opened on Wednesday . The stock had previously closed at $26.00, but opened at $25.00. Zai Lab shares last traded at $25.2050, with a volume of 264,227 shares.

Analyst Ratings Changes

ZLAB has been the subject of a number of research reports. Weiss Ratings raised shares of Zai Lab from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, July 29th. Citigroup upped their price objective on shares of Zai Lab from $44.00 to $45.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Zacks Research raised Zai Lab from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 7th. Finally, Wall Street Zen lowered Zai Lab from a “hold” rating to a “sell” rating in a research note on Saturday, May 16th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $40.20.

Zai Lab Price Performance

The business’s 50 day simple moving average is $19.06 and its 200 day simple moving average is $19.34. The stock has a market cap of $2.90 billion, a P/E ratio of -14.92 and a beta of 0.78.

Zai Lab (NASDAQ:ZLAB) last issued its earnings results on Tuesday, June 30th. The company reported ($0.50) earnings per share (EPS) for the quarter. The company had revenue of $106.31 million during the quarter. Zai Lab had a negative return on equity of 27.43% and a negative net margin of 41.86%. Research analysts predict that Zai Lab Limited Unsponsored ADR will post -2.17 earnings per share for the current year.

Insiders Place Their Bets

In other Zai Lab news, Director William Lis sold 7,040 shares of Zai Lab stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $18.09, for a total transaction of $127,353.60. Following the completion of the transaction, the director directly owned 50,437 shares of the company’s stock, valued at approximately $912,405.33. This trade represents a 12.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Yajing Chen sold 2,264 shares of Zai Lab stock in a transaction on Friday, June 26th. The shares were sold at an average price of $17.46, for a total value of $39,529.44. Following the transaction, the chief financial officer directly owned 35,691 shares of the company’s stock, valued at approximately $623,164.86. The trade was a 5.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 90,873 shares of company stock worth $1,730,096 over the last three months. 4.88% of the stock is currently owned by corporate insiders.

Institutional Trading of Zai Lab

A hedge fund recently raised its position in Zai Lab stock. Royal Bank of Canada lifted its holdings in Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) by 214.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,771 shares of the company’s stock after acquiring an additional 9,390 shares during the quarter. Royal Bank of Canada’s holdings in Zai Lab were worth $498,000 at the end of the most recent reporting period. Institutional investors own 41.65% of the company’s stock.

Zai Lab Company Profile

Zai Lab Ltd (NASDAQ: ZLAB) is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company’s end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company’s marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton’s tyrosine kinase inhibitor approved for several B-cell malignancies.