Zai Lab (NASDAQ:ZLAB) Shares Gap Down – Time to Sell?

Zai Lab Limited (NASDAQ:ZLAB)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $37.33, but opened at $35.33. Zai Lab shares last traded at $35.27, with a volume of 73,020 shares traded.

Analyst Ratings Changes

ZLAB has been the subject of a number of research reports. Bank of America reiterated a “neutral” rating and set a $36.10 price objective (up from $29.00) on shares of Zai Lab in a report on Monday, March 3rd. JPMorgan Chase & Co. raised their price target on Zai Lab from $44.00 to $51.00 and gave the company an “overweight” rating in a research note on Thursday, March 13th. Scotiabank began coverage on Zai Lab in a research note on Friday, March 7th. They issued a “sector outperform” rating and a $55.00 price target for the company. Finally, Cantor Fitzgerald upgraded Zai Lab to a “strong-buy” rating in a research note on Tuesday, March 4th.

Zai Lab Stock Down 4.6 %

The stock has a 50 day simple moving average of $30.51 and a two-hundred day simple moving average of $27.59. The stock has a market capitalization of $3.90 billion, a P/E ratio of -12.86 and a beta of 1.08.

Zai Lab (NASDAQ:ZLAB) last issued its earnings results on Thursday, February 27th. The company reported ($0.80) EPS for the quarter, missing the consensus estimate of ($0.61) by ($0.19). Zai Lab had a negative return on equity of 36.97% and a negative net margin of 76.14%. The business had revenue of $109.07 million for the quarter, compared to the consensus estimate of $110.15 million. Sell-side analysts predict that Zai Lab Limited will post -2.58 earnings per share for the current fiscal year.

Insider Transactions at Zai Lab

In related news, insider Frazor Titus Edmondson III sold 14,544 shares of Zai Lab stock in a transaction that occurred on Friday, February 28th. The stock was sold at an average price of $32.98, for a total transaction of $479,661.12. Following the completion of the sale, the insider now directly owns 14,328 shares of the company’s stock, valued at approximately $472,537.44. This trade represents a 50.37 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Rafael Amado sold 7,583 shares of Zai Lab stock in a transaction that occurred on Tuesday, December 31st. The stock was sold at an average price of $26.28, for a total value of $199,281.24. Following the sale, the insider now directly owns 33,834 shares of the company’s stock, valued at approximately $889,157.52. The trade was a 18.31 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 125,127 shares of company stock worth $4,139,672. 13.88% of the stock is owned by company insiders.

Institutional Trading of Zai Lab

Hedge funds have recently added to or reduced their stakes in the company. Principal Financial Group Inc. acquired a new stake in Zai Lab during the 4th quarter worth approximately $46,172,000. Geode Capital Management LLC raised its holdings in Zai Lab by 26.4% in the 3rd quarter. Geode Capital Management LLC now owns 43,626 shares of the company’s stock valued at $1,053,000 after acquiring an additional 9,107 shares in the last quarter. Alberta Investment Management Corp raised its holdings in Zai Lab by 42.9% in the 4th quarter. Alberta Investment Management Corp now owns 232,293 shares of the company’s stock valued at $6,084,000 after acquiring an additional 69,740 shares in the last quarter. Hennion & Walsh Asset Management Inc. raised its holdings in Zai Lab by 28.9% in the 4th quarter. Hennion & Walsh Asset Management Inc. now owns 183,317 shares of the company’s stock valued at $4,801,000 after acquiring an additional 41,128 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new position in Zai Lab in the 4th quarter valued at $511,000. 41.65% of the stock is owned by institutional investors and hedge funds.

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.