Zai Lab (NASDAQ:ZLAB) Shares Gap Down – Here’s Why

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) shares gapped down prior to trading on Tuesday. The stock had previously closed at $24.34, but opened at $23.10. Zai Lab shares last traded at $22.6470, with a volume of 150,486 shares trading hands.

Analysts Set New Price Targets

A number of research firms recently commented on ZLAB. Citigroup upped their price target on shares of Zai Lab from $44.00 to $45.00 and gave the company a “buy” rating in a report on Friday, August 7th. Weiss Ratings raised shares of Zai Lab from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, July 29th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Zai Lab in a research note on Tuesday, October 6th. Zacks Research upgraded shares of Zai Lab from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Finally, Wall Street Zen upgraded shares of Zai Lab from a “sell” rating to a “hold” rating in a research report on Saturday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Zai Lab currently has an average rating of “Moderate Buy” and a consensus target price of $37.25.

Zai Lab Price Performance

The firm has a market capitalization of $2.66 billion, a PE ratio of -13.65 and a beta of 0.73. The business has a 50-day simple moving average of $25.20 and a 200-day simple moving average of $20.87.

Zai Lab (NASDAQ:ZLAB) last issued its quarterly earnings results on Tuesday, June 30th. The company reported ($0.50) earnings per share (EPS) for the quarter. Zai Lab had a negative return on equity of 27.43% and a negative net margin of 41.86%. The business had revenue of $106.31 million for the quarter. On average, research analysts expect that Zai Lab Limited Unsponsored ADR will post -2.37 earnings per share for the current year.

Insider Buying and Selling at Zai Lab

In other Zai Lab news, Director William Lis sold 8,506 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $25.00, for a total value of $212,650.00. Following the completion of the sale, the director directly owned 41,931 shares in the company, valued at approximately $1,048,275. This trade represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Over the last ninety days, insiders sold 9,385 shares of company stock valued at $235,145. 4.88% of the stock is owned by company insiders.

Institutional Trading of Zai Lab

Institutional investors have recently modified their holdings of the stock. Seven Fleet Capital Management LP grew its position in shares of Zai Lab by 74.7% in the second quarter. Seven Fleet Capital Management LP now owns 136,016 shares of the company’s stock valued at $2,584,000 after purchasing an additional 58,158 shares in the last quarter. Headlands Technologies LLC raised its position in Zai Lab by 142.0% in the 2nd quarter. Headlands Technologies LLC now owns 68,010 shares of the company’s stock valued at $1,292,000 after purchasing an additional 39,901 shares during the last quarter. WealthPlan Investment Management LLC purchased a new position in Zai Lab during the 3rd quarter worth $969,000. Finally, Nykredit A S acquired a new position in shares of Zai Lab during the 2nd quarter worth $79,000. Institutional investors and hedge funds own 41.65% of the company’s stock.

About Zai Lab

Zai Lab Ltd. (NASDAQ:ZLAB) is a biopharmaceutical company focused on discovering, developing and commercializing medicines for cancer and other serious diseases. Its research and development activities have included oncology, autoimmune and inflammatory disorders, neuroscience, infectious diseases and other areas of significant unmet medical need.

Founded in 2014, Zai Lab has built its business through a combination of internally developed programs and licensing or collaboration agreements with international pharmaceutical and biotechnology companies.