Zenas BioPharma (NASDAQ:ZBIO) Shares Gap Down on Analyst Downgrade

Zenas BioPharma, Inc. (NASDAQ:ZBIO) shares gapped down prior to trading on Monday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. The stock had previously closed at $34.50, but opened at $16.77. Morgan Stanley now has a $19.00 price target on the stock, down from their previous price target of $37.00. Zenas BioPharma shares last traded at $15.61, with a volume of 2,301,078 shares changing hands.

Other equities research analysts have also issued reports about the stock. Citigroup upped their price objective on shares of Zenas BioPharma from $27.00 to $46.00 and gave the company a “buy” rating in a research note on Tuesday, October 28th. Wedbush reaffirmed an “outperform” rating and set a $45.00 price target on shares of Zenas BioPharma in a research report on Monday, December 22nd. Jefferies Financial Group reiterated a “buy” rating and set a $52.00 price target on shares of Zenas BioPharma in a report on Monday, October 27th. HC Wainwright reissued a “buy” rating on shares of Zenas BioPharma in a research note on Tuesday, December 16th. Finally, Evercore ISI assumed coverage on Zenas BioPharma in a research note on Wednesday, November 26th. They issued an “outperform” rating and a $55.00 price objective on the stock. Six investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $43.14.

Insider Transactions at Zenas BioPharma

In other Zenas BioPharma news, major shareholder Sr One Capital Management, Llc acquired 126,315 shares of the stock in a transaction on Thursday, October 9th. The shares were purchased at an average price of $19.00 per share, for a total transaction of $2,399,985.00. Following the completion of the acquisition, the insider owned 1,917,895 shares in the company, valued at approximately $36,440,005. This represents a 7.05% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Patrick G. Enright acquired 105,265 shares of the company’s stock in a transaction on Thursday, October 9th. The stock was acquired at an average cost of $19.00 per share, for a total transaction of $2,000,035.00. Following the completion of the purchase, the director directly owned 1,832,669 shares of the company’s stock, valued at approximately $34,820,711. This represents a 6.09% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 306,728 shares of company stock valued at $5,850,014 over the last ninety days. 16.50% of the stock is owned by company insiders.

Zenas BioPharma News Roundup

Here are the key news stories impacting Zenas BioPharma this week:

• Positive Sentiment: Phase 3 INDIGO met its primary endpoint: obexelimab reduced IgG4‑RD flare risk (~56%) and met key endpoints, confirming efficacy in the pivotal trial — a clear clinical win that supports regulatory and commercial potential. Read More.
• Positive Sentiment: Analyst/investor bull case remains: some research and transcripts highlight obexelimab’s differentiated mechanism and the company’s broader autoimmune pipeline (including BTK inhibitor orelabrutinib and multiple MS programs), arguing the Phase 3 win could materially reshape Zenas’ franchise. Read More.
• Neutral Sentiment: Market debate over magnitude of the win: coverage is focused on how obexelimab stacks up versus existing therapies and whether cross‑trial comparisons or secondary endpoints matter for commercial value — this fuels volatility but not a definitive valuation direction. Read More.
• Negative Sentiment: Heavy near‑term selling despite the positive primary result: multiple outlets report the stock plunged (large intraday drop) as investors parsed details and weighed market expectations vs. actual data. That selling pressure pressured the share price sharply. Read More.
• Negative Sentiment: Perception of weaker‑than‑expected elements in the dataset prompted investor concern and headlines that data fell short of some expectations, contributing to the selloff. Read More.
• Negative Sentiment: Analyst downgrade: Morgan Stanley lowered its rating, increasing selling pressure and reducing near‑term investor conviction. Read More.
• Negative Sentiment: Investor litigation/PR risk: a Pomerantz law firm investor alert signals potential shareholder litigation, which can amplify volatility and create legal overhang. Read More.

Hedge Funds Weigh In On Zenas BioPharma

Hedge funds have recently added to or reduced their stakes in the stock. Quarry LP raised its stake in shares of Zenas BioPharma by 34.5% in the third quarter. Quarry LP now owns 1,134 shares of the company’s stock worth $25,000 after purchasing an additional 291 shares during the last quarter. Two Sigma Investments LP grew its holdings in Zenas BioPharma by 3.9% during the third quarter. Two Sigma Investments LP now owns 20,382 shares of the company’s stock worth $452,000 after buying an additional 765 shares in the last quarter. Bank of America Corp DE raised its position in Zenas BioPharma by 5.8% in the 3rd quarter. Bank of America Corp DE now owns 14,809 shares of the company’s stock valued at $329,000 after buying an additional 818 shares during the last quarter. Russell Investments Group Ltd. bought a new position in Zenas BioPharma during the 3rd quarter valued at $30,000. Finally, Rhumbline Advisers lifted its stake in Zenas BioPharma by 7.6% during the 3rd quarter. Rhumbline Advisers now owns 21,214 shares of the company’s stock valued at $471,000 after acquiring an additional 1,493 shares in the last quarter.

Zenas BioPharma Stock Up 8.6%

The company has a current ratio of 5.66, a quick ratio of 5.66 and a debt-to-equity ratio of 0.37. The stock has a market capitalization of $886.26 million, a PE ratio of -2.34 and a beta of -1.45. The stock’s fifty day simple moving average is $35.74 and its 200-day simple moving average is $24.07.

Zenas BioPharma (NASDAQ:ZBIO) last released its quarterly earnings results on Wednesday, November 12th. The company reported ($1.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.87) by ($0.35).

About Zenas BioPharma

Zenas BioPharma, Inc is a clinical-stage biotechnology company focused on the discovery and development of novel therapies in oncology and infectious diseases. The company’s proprietary platform integrates structure-guided design, computational modeling and high-throughput screening to address challenging protein-protein interactions. Zenas BioPharma is advancing multiple preclinical and clinical-stage candidates aimed at providing new treatment options where current modalities may be limited by efficacy or safety concerns.

Founded in 2021 and headquartered in Cambridge, Massachusetts, Zenas BioPharma was built to streamline the drug discovery process from target identification through to IND-enabling studies.