Zymeworks (NASDAQ:ZYME) Shares Gap Down – What’s Next?

Zymeworks Inc. (NASDAQ:ZYME)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $24.15, but opened at $23.21. Zymeworks shares last traded at $22.2240, with a volume of 193,168 shares changing hands.

Zymeworks News Roundup

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: Zymeworks is expanding its business beyond cancer by acquiring Theravance Biopharma, adding the COPD drug YUPELRI and broadening its commercial and pipeline profile. Zymeworks to Acquire Theravance Biopharma, Inc.
• Neutral Sentiment: The deal gives Zymeworks a new late-stage/marketed asset, which could improve revenue visibility over time but also changes the company’s risk profile. Zymeworks strikes $929 million deal for Theravance Biopharma
• Negative Sentiment: Investors may be concerned about the large $929 million cash price tag, which could pressure Zymeworks’ balance sheet and dilute near-term returns if integration or synergies disappoint. Zymeworks to Buy Theravance Biopharma for About $929 Million

Wall Street Analysts Forecast Growth

ZYME has been the subject of a number of recent research reports. Leerink Partners upped their target price on Zymeworks from $52.00 to $58.00 and gave the company an “outperform” rating in a research note on Tuesday, March 3rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Zymeworks in a report on Monday, April 20th. HC Wainwright reissued a “buy” rating and issued a $46.00 target price on shares of Zymeworks in a research note on Wednesday, June 3rd. Truist Financial set a $28.00 price target on shares of Zymeworks and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Finally, Stifel Nicolaus increased 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. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.67.

Zymeworks Price Performance

The stock’s 50 day simple moving average is $25.11 and its two-hundred day simple moving average is $24.72. The company has a market capitalization of $1.73 billion, a P/E ratio of -17.23 and a beta of 1.15.

Zymeworks (NASDAQ:ZYME) last released its quarterly earnings results on Tuesday, March 31st. The company reported ($0.59) EPS for the quarter. The company had revenue of $2.41 million for the quarter. Zymeworks had a negative net margin of 126.92% and a negative return on equity of 37.97%. As a group, equities research analysts expect that Zymeworks Inc. will post 1.1 earnings per share for the current year.

Zymeworks announced that its board has authorized a share repurchase program on Thursday, May 14th that permits the company to buyback $125.00 million in shares. This buyback authorization permits the company to reacquire up to 7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Trading of Zymeworks

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZYME. Optiver Holding B.V. bought a new stake in Zymeworks during the 3rd quarter worth about $26,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Zymeworks during the fourth quarter worth approximately $37,000. Quarry LP bought a new stake in shares of Zymeworks during the third quarter worth approximately $50,000. Tower Research Capital LLC TRC lifted its holdings in Zymeworks by 29.6% in the second quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company’s stock valued at $62,000 after buying an additional 1,131 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. boosted its stake 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 valued at $96,000 after acquiring an additional 731 shares during the last quarter. 92.89% of the stock is currently owned by institutional investors and hedge funds.

Zymeworks Company Profile

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.