Zai Lab (NASDAQ:ZLAB) Shares Gap Down – What’s Next?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $35.48, but opened at $34.56. Zai Lab shares last traded at $34.26, with a volume of 90,006 shares trading hands.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Cantor Fitzgerald restated an “overweight” rating on shares of Zai Lab in a research note on Thursday, March 27th. Leerink Partners set a $75.00 price objective on Zai Lab and gave the stock an “outperform” rating in a report on Monday, June 30th. JPMorgan Chase & Co. lifted their price objective on Zai Lab from $44.00 to $51.00 and gave the stock an “overweight” rating in a report on Thursday, March 13th. Finally, Wall Street Zen cut Zai Lab from a “buy” rating to a “hold” rating in a report on Friday, June 27th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $54.28.

Zai Lab Trading Down 2.2%

The firm has a market capitalization of $3.85 billion, a price-to-earnings ratio of -13.93 and a beta of 0.99. The company has a fifty day moving average price of $33.86 and a two-hundred day moving average price of $31.52.

Zai Lab (NASDAQ:ZLAB) last issued its earnings results on Thursday, May 8th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate of ($0.50) by $0.05. Zai Lab had a negative return on equity of 33.35% and a negative net margin of 60.26%. The business had revenue of $106.49 million for the quarter, compared to analysts’ expectations of $118.40 million. As a group, equities research analysts expect that Zai Lab Limited Unsponsored ADR will post -2.58 earnings per share for the current year.

Insider Activity at Zai Lab

In related news, CFO Yajing Chen sold 9,618 shares of the company’s stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $30.00, for a total value of $288,540.00. Following the transaction, the chief financial officer directly owned 17,429 shares in the company, valued at approximately $522,870. This represents a 35.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Ying Du sold 50,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $28.57, for a total value of $1,428,500.00. Following the completion of the transaction, the chief executive officer owned 479,851 shares in the company, valued at $13,709,343.07. This represents a 9.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 160,155 shares of company stock worth $4,959,535. Insiders own 4.96% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Raymond James Financial Inc. acquired a new position in Zai Lab during the fourth quarter worth $1,032,000. Oppenheimer Asset Management Inc. acquired a new position in Zai Lab during the first quarter worth $603,000. BNP Paribas Financial Markets lifted its stake in Zai Lab by 1,439.8% during the fourth quarter. BNP Paribas Financial Markets now owns 19,755 shares of the company’s stock worth $517,000 after purchasing an additional 18,472 shares in the last quarter. FMR LLC lifted its stake in Zai Lab by 749.1% during the fourth quarter. FMR LLC now owns 5,475,505 shares of the company’s stock worth $143,403,000 after purchasing an additional 4,830,646 shares in the last quarter. Finally, US Bancorp DE lifted its stake in Zai Lab by 1,671.9% during the fourth quarter. US Bancorp DE now owns 5,865 shares of the company’s stock worth $154,000 after purchasing an additional 5,534 shares in the last quarter. 41.65% of the stock is currently owned by institutional investors and hedge funds.

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis.