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

Zymeworks Inc. (NASDAQ:ZYME) 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 trading hands.

Key Stories Impacting Zymeworks

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 Analyst Weigh In

Several research analysts have recently commented on the company. Truist Financial set a $28.00 target price on Zymeworks and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings restated a “sell (d-)” rating on shares of Zymeworks in a research note on Monday, April 20th. HC Wainwright reaffirmed a “buy” rating and issued a $46.00 price objective on shares of Zymeworks in a report on Wednesday, June 3rd. Stifel Nicolaus boosted their target price on shares of Zymeworks from $40.00 to $47.00 and gave the company a “buy” rating in a research note on Tuesday, March 3rd. Finally, Leerink Partners increased their target price on shares of Zymeworks from $52.00 to $58.00 and gave the stock an “outperform” rating in a report on Tuesday, March 3rd. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $36.67.

Zymeworks Trading Down 2.0%

The firm has a market cap of $1.73 billion, a price-to-earnings ratio of -17.23 and a beta of 1.15. The stock has a 50-day moving average of $25.11 and a 200-day moving average of $24.72.

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

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

Institutional Investors Weigh In On Zymeworks

A number of hedge funds have recently made changes to their positions in the business. Optiver Holding B.V. bought a new position in Zymeworks in the 3rd quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd bought a new stake in Zymeworks during the 4th quarter valued at $37,000. Quarry LP bought a new stake in Zymeworks during the 3rd quarter valued at $50,000. Tower Research Capital LLC TRC boosted its position in Zymeworks by 29.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company’s stock worth $62,000 after acquiring an additional 1,131 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. lifted its holdings 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 worth $96,000 after purchasing an additional 731 shares during the period. Institutional investors own 92.89% of the company’s stock.

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.