Zymeworks (NASDAQ:ZYME) Stock Falls 6.6% – Should You Sell?

Zymeworks Inc. (NASDAQ:ZYME)’s share price was down 6.6% during mid-day trading on Wednesday. The company traded as low as $28.98 and last traded at $29.38. 76,148 shares changed hands during trading, a decline of 90% from the average session volume of 780,271 shares. The stock had previously closed at $31.46.

Recent Zymeworks Headlines

These are some of the ZYME headlines that stood out recently:

• Positive Sentiment: Higher 2026 earnings guidance: Zymeworks raised its earnings outlook for the year, supporting the investment case. Zymeworks raises 2026 earnings guidance
• Positive Sentiment: Profitability and revenue beat: The company swung to a profit, with reported third-quarter revenue of $256.5 million versus a FactSet estimate of $227.4 million. A $250 million Jazz milestone was a key contributor, though its size suggests the quarter’s results may not reflect recurring revenue. Zymeworks swings to a profit on a Jazz milestone
• Positive Sentiment: Analyst targets increased: TD Cowen raised its target to $39, Truist Financial to $36, and HC Wainwright to $56; all retained Buy ratings. These revisions indicate greater analyst optimism. TD Cowen rating

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Wolfe Research initiated coverage on shares of Zymeworks in a research note on Thursday, September 17th. They issued an “outperform” rating on the stock. Truist Financial boosted their target price on shares of Zymeworks from $35.00 to $36.00 and gave the company a “buy” rating in a research report on Tuesday. TD Cowen upped their target price on shares of Zymeworks from $34.00 to $39.00 and gave the company a “buy” rating in a report on Tuesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Zymeworks in a research report on Thursday, October 15th. Finally, Deutsche Bank Aktiengesellschaft set a $32.00 price target on shares of Zymeworks in a research note on Wednesday, August 26th. Twelve equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Zymeworks presently has a consensus rating of “Moderate Buy” and an average target price of $42.25.

Zymeworks Price Performance

The business has a 50-day simple moving average of $27.50 and a 200 day simple moving average of $25.42. The firm has a market cap of $2.07 billion, a PE ratio of 56.63 and a beta of 1.32.

Zymeworks (NASDAQ:ZYME) last posted its quarterly earnings data on Monday, November 9th. The company reported $2.28 earnings per share for the quarter, beating analysts’ consensus estimates of $2.27 by $0.01. The firm had revenue of $512.92 million for the quarter, compared to analysts’ expectations of $227.40 million. Zymeworks had a return on equity of 25.07% and a net margin of 16.10%. The business’s quarterly revenue was up 828.7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.26) EPS. On average, equities analysts forecast that Zymeworks Inc. will post 1.32 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zymeworks news, EVP Adam Schayowitz sold 13,832 shares of Zymeworks stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $25.85, for a total transaction of $357,557.20. Following the transaction, the executive vice president owned 23,205 shares of the company’s stock, valued at $599,849.25. The trade was a 37.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 37.73% of the company’s stock.

Institutional Trading of Zymeworks

Several institutional investors and hedge funds have recently modified their holdings of ZYME. Fisher Asset Management LLC lifted its position in shares of Zymeworks by 759.9% in the third quarter. Fisher Asset Management LLC now owns 608,612 shares of the company’s stock valued at $16,122,000 after acquiring an additional 537,837 shares in the last quarter. Russell Investments Group Ltd. raised its stake in Zymeworks by 104.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 97,994 shares of the company’s stock valued at $2,596,000 after purchasing an additional 50,127 shares during the period. Calamos Advisors LLC bought a new stake in Zymeworks during the 3rd quarter valued at approximately $1,232,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in Zymeworks in the 3rd quarter worth approximately $96,000. Finally, ProShare Advisors LLC lifted its holdings in Zymeworks by 91.5% in the 3rd quarter. ProShare Advisors LLC now owns 16,390 shares of the company’s stock worth $434,000 after purchasing an additional 7,833 shares in the last quarter. 92.89% of the stock is currently owned by institutional investors.

Zymeworks Company Profile

Zymeworks Inc. is a biotechnology company headquartered in Vancouver, Canada, that develops engineered medicines, with a focus on treatments for cancer and other serious diseases. Its antibody-engineering technologies are designed to create therapies that can engage multiple biological targets or modify immune responses. The company’s lead program is zanidatamab, a HER2-targeted bispecific antibody. In the United States, it is marketed by partner Jazz Pharmaceuticals as Ziihera for certain adults with previously treated, unresectable or metastatic biliary tract cancer.