Zai Lab (NASDAQ:ZLAB) Stock Falls 6.3% – Time to Sell?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) dropped 6.3% during mid-day trading on Tuesday. The stock traded as low as $23.02 and last traded at $23.0440. 179,278 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 855,420 shares. The stock had previously closed at $24.59.

Analyst Ratings Changes

ZLAB has been the subject of several analyst reports. Zacks Research raised shares of Zai Lab from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Weiss Ratings upgraded shares of Zai Lab from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, July 29th. Wall Street Zen raised shares of Zai Lab from a “sell” rating to a “hold” rating in a report on Saturday, September 26th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Zai Lab in a research report on Tuesday, October 6th. Finally, Citigroup increased their price objective on Zai Lab from $44.00 to $45.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. One equities research 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 issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $37.25.

Zai Lab Price Performance

The business’s 50 day moving average is $25.34 and its two-hundred day moving average is $21.58.

Zai Lab (NASDAQ:ZLAB) last released its quarterly earnings results on Tuesday, June 30th. The company reported ($0.50) 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%. As a group, equities analysts anticipate that Zai Lab Limited Unsponsored ADR will post -2.37 EPS for the current fiscal year.

Insider Activity

In other news, Director William Lis sold 8,506 shares of Zai Lab stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $25.00, for a total transaction of $212,650.00. Following the completion of the sale, the director directly owned 41,931 shares of the company’s stock, valued at approximately $1,048,275. The trade was a 16.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Over the last ninety days, insiders have sold 9,385 shares of company stock worth $235,145. Insiders own 4.88% of the company’s stock.

Institutional Investors Weigh In On Zai Lab

A number of large investors have recently added to or reduced their stakes in the company. Headlands Technologies LLC boosted its holdings in shares of Zai Lab by 142.0% in the 2nd quarter. Headlands Technologies LLC now owns 68,010 shares of the company’s stock worth $1,292,000 after purchasing an additional 39,901 shares in the last quarter. Seven Fleet Capital Management LP increased its position in shares of Zai Lab by 74.7% during the 2nd quarter. Seven Fleet Capital Management LP now owns 136,016 shares of the company’s stock valued at $2,584,000 after purchasing an additional 58,158 shares during the last quarter. Finally, Nykredit A S purchased a new position in shares of Zai Lab during the 2nd quarter valued at about $79,000. Hedge funds and other institutional investors own 41.65% of the company’s stock.

About Zai Lab

Zai Lab Ltd. (NASDAQ: ZLAB) is a biopharmaceutical company focused on discovering, developing and commercializing medicines for serious diseases with significant unmet medical needs. The company’s research and development activities span oncology, autoimmune and inflammatory disorders, infectious diseases, and neuroscience.

Founded in 2014 by Samantha Du, Zai Lab has built a portfolio through internal research as well as licensing and collaboration agreements with international pharmaceutical and biotechnology companies.