Zai Lab (NASDAQ:ZLAB) Hits New 1-Year Low – Should You Sell?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $19.01 and last traded at $18.9770, with a volume of 100970 shares. The stock had previously closed at $19.50.

Analysts Set New Price Targets

Several research firms have commented on ZLAB. Jefferies Financial Group initiated coverage on Zai Lab in a research note on Monday, August 25th. They set a “buy” rating and a $52.00 price objective for the company. Citigroup restated a “buy” rating and set a $69.00 price target (up previously from $66.00) on shares of Zai Lab in a research note on Monday, August 11th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Zai Lab in a report on Wednesday, October 8th. Six analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $56.35.

Zai Lab Stock Performance

The business has a fifty day simple moving average of $25.63 and a 200 day simple moving average of $31.58. The stock has a market cap of $2.12 billion, a price-to-earnings ratio of -9.71 and a beta of 0.87.

Zai Lab (NASDAQ:ZLAB) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.33) EPS for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.05). Zai Lab had a negative net margin of 46.83% and a negative return on equity of 25.83%. The company had revenue of $116.10 million for the quarter, compared to analyst estimates of $150.24 million. On average, equities research analysts anticipate that Zai Lab Limited Unsponsored ADR will post -2.58 EPS for the current fiscal year.

Insider Activity

In related news, insider Joshua L. Smiley purchased 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 10th. The stock was purchased at an average price of $28.91 per share, with a total value of $289,100.00. Following the completion of the transaction, the insider owned 86,604 shares of the company’s stock, valued at approximately $2,503,721.64. This trade represents a 13.05% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 4.96% of the company’s stock.

Institutional Trading of Zai Lab

Institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd bought a new stake in shares of Zai Lab in the first quarter worth $75,000. Avantax Advisory Services Inc. acquired a new position in Zai Lab during the 1st quarter worth $225,000. PEAK6 LLC bought a new stake in shares of Zai Lab in the 1st quarter worth about $271,000. SG Americas Securities LLC bought a new stake in shares of Zai Lab in the 3rd quarter worth about $331,000. Finally, Royal Bank of Canada raised its stake in shares of Zai Lab by 214.3% in the 1st quarter. Royal Bank of Canada now owns 13,771 shares of the company’s stock valued at $498,000 after purchasing an additional 9,390 shares in the last quarter. 41.65% of the stock is owned by hedge funds and other 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.