Zai Lab (NASDAQ:ZLAB) Shares Gap Up – Still a Buy?

Zai Lab Limited (NASDAQ:ZLAB)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $41.40, but opened at $42.39. Zai Lab shares last traded at $43.42, with a volume of 284,453 shares changing hands.

Analyst Upgrades and Downgrades

ZLAB has been the topic of a number of research analyst reports. Bank of America restated a “neutral” rating and set a $36.10 price target (up previously from $29.00) on shares of Zai Lab in a report on Monday, March 3rd. Scotiabank assumed coverage on Zai Lab in a report on Friday, March 7th. They set a “sector outperform” rating and a $55.00 target price on the stock. JPMorgan Chase & Co. upped their target price on Zai Lab from $44.00 to $51.00 and gave the stock an “overweight” rating in a report on Thursday, March 13th. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Zai Lab in a report on Thursday, March 27th.

Zai Lab Trading Down 4.7%

The business has a fifty day simple moving average of $31.78 and a two-hundred day simple moving average of $30.50. The stock has a market cap of $4.52 billion, a PE ratio of -14.80 and a beta of 0.96.

Zai Lab (NASDAQ:ZLAB) last issued its quarterly earnings results on Thursday, May 8th. The company reported ($0.45) EPS for the quarter, topping analysts’ consensus estimates of ($0.50) by $0.05. Zai Lab had a negative return on equity of 36.97% and a negative net margin of 76.14%. The firm had revenue of $106.49 million for the quarter, compared to analysts’ expectations of $118.40 million. On average, research analysts predict that Zai Lab Limited will post -2.58 earnings per share for the current year.

Insider Transactions 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 now directly owns 17,429 shares of the company’s stock, valued at approximately $522,870. This represents a 35.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Frazor Titus Edmondson III sold 4,369 shares of the company’s stock in a transaction that occurred on Wednesday, April 2nd. The shares were sold at an average price of $35.89, for a total value of $156,803.41. Following the completion of the transaction, the insider now directly owns 27,217 shares in the company, valued at $976,818.13. This trade represents a 13.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 130,207 shares of company stock valued at $3,880,239 in the last ninety days. 4.96% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zai Lab

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GF Fund Management CO. LTD. bought a new position in Zai Lab in the 4th quarter valued at approximately $29,000. Pictet Asset Management Holding SA bought a new position in Zai Lab in the 4th quarter valued at approximately $31,000. Caitong International Asset Management Co. Ltd bought a new position in Zai Lab in the 1st quarter valued at approximately $75,000. Advisors Preferred LLC bought a new position in Zai Lab in the 1st quarter valued at approximately $110,000. Finally, Barclays PLC lifted its holdings in shares of Zai Lab by 337.6% during the 4th quarter. Barclays PLC now owns 3,702 shares of the company’s stock valued at $97,000 after buying an additional 2,856 shares during the period. 41.65% of the stock is owned by institutional investors.

Zai Lab Company Profile

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.