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

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $34.55, but opened at $35.62. Zai Lab shares last traded at $35.55, with a volume of 133,690 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Cantor Fitzgerald restated an “overweight” rating on shares of Zai Lab in a research report on Thursday, March 27th. Scotiabank initiated 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. raised their target price on Zai Lab from $44.00 to $51.00 and gave the company an “overweight” rating in a research note on Thursday, March 13th. Finally, Bank of America reiterated a “neutral” rating and set a $36.10 price target (up previously from $29.00) on shares of Zai Lab in a research report on Monday, March 3rd.

Zai Lab Stock Up 2.6%

The firm has a market cap of $3.91 billion, a price-to-earnings ratio of -14.27 and a beta of 0.96. The business’s fifty day moving average is $32.80 and its two-hundred day moving average is $30.83.

Zai Lab (NASDAQ:ZLAB) last released its 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. The firm had revenue of $106.49 million during the quarter, compared to analyst estimates of $118.40 million. Zai Lab had a negative net margin of 60.26% and a negative return on equity of 33.35%. Research analysts forecast that Zai Lab Limited Unsponsored ADR will post -2.58 EPS for the current year.

Insiders Place Their Bets

In other Zai Lab news, CEO Ying Du sold 5,808 shares of the business’s stock in a transaction that occurred on Wednesday, April 2nd. The stock was sold at an average price of $35.89, for a total value of $208,449.12. Following the sale, the chief executive officer now owns 476,046 shares in the company, valued at approximately $17,085,290.94. The trade was a 1.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Yajing Chen sold 9,618 shares of the stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $30.00, for a total transaction of $288,540.00. Following the transaction, the chief financial officer now owns 17,429 shares of the company’s stock, valued at $522,870. The trade was a 35.56% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 127,207 shares of company stock worth $3,765,009. Company insiders own 4.96% of the company’s stock.

Institutional Trading of Zai Lab

Several institutional investors and hedge funds have recently bought and sold shares of ZLAB. Raymond James Financial Inc. bought a new position in shares of Zai Lab in the 4th quarter valued at about $1,032,000. BNP Paribas Financial Markets lifted its stake in Zai Lab by 1,439.8% in the 4th quarter. BNP Paribas Financial Markets now owns 19,755 shares of the company’s stock valued at $517,000 after purchasing an additional 18,472 shares during the last quarter. FMR LLC lifted its stake in Zai Lab by 749.1% in the 4th quarter. FMR LLC now owns 5,475,505 shares of the company’s stock valued at $143,403,000 after purchasing an additional 4,830,646 shares during the last quarter. US Bancorp DE grew its holdings 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 during the period. Finally, Wells Fargo & Company MN increased its position in Zai Lab by 8,090.8% during the fourth quarter. Wells Fargo & Company MN now owns 40,954 shares of the company’s stock worth $1,073,000 after buying an additional 40,454 shares during the last quarter. Institutional investors own 41.65% of the company’s stock.

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.