Zymeworks (NASDAQ:ZYME) Shares Gap Down – Here’s Why

Zymeworks Inc. (NASDAQ:ZYME)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $24.15, but opened at $23.21. Zymeworks shares last traded at $22.2240, with a volume of 193,168 shares trading hands.

Zymeworks News Roundup

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: Zymeworks agreed to acquire Theravance Biopharma for $929 million in cash, a deal that broadens Zymeworks’ business mix beyond cancer and adds a marketed COPD therapy. Zymeworks to Acquire Theravance Biopharma, Inc.
• Positive Sentiment: The acquisition could improve Zymeworks’ commercial-stage profile by adding YUPELRI®, which may help diversify future revenue sources and reduce reliance on its development pipeline. Reuters article
• Neutral Sentiment: Management held an M&A call and transcript/slideshow materials were released, likely providing more detail on the strategic rationale and integration plans. Zymeworks Inc. (ZYME) M&A Call Transcript
• Neutral Sentiment: Theravance shares fell after the buyout announcement, reflecting the typical dynamics of an acquisition where the target stock adjusts toward the deal price. Theravance Stock Down 3% After Zymeworks Announces Buyout

Analyst Upgrades and Downgrades

Several research analysts have recently commented on ZYME shares. Citigroup reiterated a “buy” rating on shares of Zymeworks in a research note on Tuesday. HC Wainwright restated a “buy” rating and issued a $46.00 price target on shares of Zymeworks in a research note on Wednesday, June 3rd. Wells Fargo & Company raised their price target on Zymeworks from $34.00 to $37.00 and gave the company an “overweight” rating in a report on Tuesday. Truist Financial set a $28.00 price objective on shares of Zymeworks and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Finally, Stifel Nicolaus lifted their price objective on shares of Zymeworks from $40.00 to $47.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Zymeworks currently has a consensus rating of “Moderate Buy” and a consensus price target of $37.00.

Zymeworks Price Performance

The stock has a market capitalization of $1.91 billion, a price-to-earnings ratio of -19.08 and a beta of 1.15. The company’s 50-day simple moving average is $25.02 and its 200-day simple moving average is $24.71.

Zymeworks (NASDAQ:ZYME) last posted its earnings results on Tuesday, March 31st. The company reported ($0.59) EPS for the quarter. The firm had revenue of $2.41 million during the quarter. Zymeworks had a negative net margin of 126.92% and a negative return on equity of 37.97%. Research analysts expect that Zymeworks Inc. will post 1.1 earnings per share for the current year.

Zymeworks announced that its board has initiated a stock buyback plan on Thursday, May 14th that permits the company to repurchase $125.00 million in shares. This repurchase authorization permits the company to purchase up to 7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ZYME. Caitong International Asset Management Co. Ltd bought a new stake in shares of Zymeworks in the fourth quarter valued at about $37,000. Quarry LP acquired a new position in shares of Zymeworks in the third quarter valued at about $50,000. Tower Research Capital LLC TRC increased its position in Zymeworks by 29.6% during the second quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company’s stock worth $62,000 after acquiring an additional 1,131 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its position in Zymeworks by 25.2% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,637 shares of the company’s stock worth $96,000 after acquiring an additional 731 shares during the period. Finally, BNP Paribas Financial Markets raised its stake in Zymeworks by 157.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 10,307 shares of the company’s stock worth $129,000 after purchasing an additional 6,307 shares in the last quarter. Institutional investors own 92.89% of the company’s stock.

About Zymeworks

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks’ innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.