Zai Lab (NASDAQ:ZLAB) Stock Falls 4.6% – Here’s Why

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB)’s stock price traded down 4.6% during mid-day trading on Friday. The company traded as low as $24.51 and last traded at $24.3350. Approximately 99,456 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 856,308 shares. The stock had previously closed at $25.50.

Analyst Upgrades and Downgrades

ZLAB has been the topic of several recent analyst reports. Citigroup upped their target price on Zai Lab from $44.00 to $45.00 and gave the company a “buy” rating in a research 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. Wall Street Zen raised shares of Zai Lab from a “sell” rating to a “hold” rating in a research note on Saturday, September 26th. Finally, Zacks Research upgraded Zai Lab from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $37.25.

Zai Lab Trading Down 5.7%

The firm has a fifty day moving average price of $24.25 and a 200 day moving average price of $21.19. The firm has a market cap of $2.74 billion, a PE ratio of -14.12 and a beta of 0.72.

Zai Lab (NASDAQ:ZLAB) last released its quarterly earnings results on Tuesday, June 30th. The company reported ($0.50) EPS for the quarter. Zai Lab had a negative net margin of 41.86% and a negative return on equity of 27.43%. The firm had revenue of $106.31 million for the quarter. As a group, equities analysts predict that Zai Lab Limited Unsponsored ADR will post -2.17 earnings per share for the current year.

Insider Buying and Selling at Zai Lab

In related 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 transaction of $212,650.00. Following the transaction, the director owned 41,931 shares of the company’s stock, valued at approximately $1,048,275. This represents a 16.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders sold 9,385 shares of company stock valued at $235,145 over the last ninety days. Insiders own 4.88% of the company’s stock.

Institutional Investors Weigh In On Zai Lab

Several large investors have recently added to or reduced their stakes in the business. Seven Fleet Capital Management LP boosted its holdings 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 acquiring an additional 58,158 shares in the last quarter. Headlands Technologies LLC boosted its holdings 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 in the last quarter. Finally, Nykredit A S purchased a new stake in Zai Lab in the 2nd quarter valued at approximately $79,000. 41.65% of the stock is owned by hedge funds and other institutional investors.

Zai Lab Company Profile

Zai Lab Ltd. (NASDAQ: ZLAB) is a biopharmaceutical company focused on discovering, developing and commercializing medicines for serious diseases with significant unmet medical needs. The company’s research and development activities span oncology, autoimmune and inflammatory disorders, infectious diseases, and neuroscience.

Founded in 2014 by Samantha Du, Zai Lab has built a portfolio through internal research as well as licensing and collaboration agreements with international pharmaceutical and biotechnology companies.