Zai Lab (NASDAQ:ZLAB) Shares Gap Down – Should You Sell?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) shares gapped down prior to trading on Wednesday . The stock had previously closed at $26.00, but opened at $25.00. Zai Lab shares last traded at $25.2050, with a volume of 264,227 shares changing hands.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Zacks Research raised shares of Zai Lab from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Weiss Ratings upgraded Zai Lab from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, July 29th. Wall Street Zen downgraded Zai Lab from a “hold” rating to a “sell” rating in a research report on Saturday, May 16th. Finally, Citigroup increased their target price on Zai Lab from $44.00 to $45.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zai Lab currently has a consensus rating of “Moderate Buy” and a consensus target price of $40.20.

Zai Lab Price Performance

The stock’s 50-day moving average price is $19.40 and its 200-day moving average price is $19.44. The company has a market cap of $2.96 billion, a P/E ratio of -15.22 and a beta of 0.78.

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 return on equity of 27.43% and a negative net margin of 41.86%.The business had revenue of $106.31 million for the quarter. As a group, analysts expect that Zai Lab Limited Unsponsored ADR will post -2.17 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Ying Du sold 24,543 shares of Zai Lab stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $17.46, for a total value of $428,520.78. Following the completion of the sale, the chief executive officer directly owned 1,192,840 shares in the company, valued at approximately $20,826,986.40. The trade was a 2.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Yajing Chen sold 2,264 shares of the business’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $17.46, for a total value of $39,529.44. Following the completion of the sale, the chief financial officer owned 35,691 shares of the company’s stock, valued at approximately $623,164.86. This trade represents a 5.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 49,998 shares of company stock worth $953,721 in the last quarter. Corporate insiders own 4.88% of the company’s stock.

Hedge Funds Weigh In On Zai Lab

A hedge fund recently raised its position in Zai Lab stock. SG Americas Securities LLC grew its stake in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) by 6.6% in the fourth quarter, according to the company in its most recent filing with the SEC. The firm owned 10,396 shares of the company’s stock after acquiring an additional 642 shares during the quarter. SG Americas Securities LLC’s holdings in Zai Lab were worth $183,000 as of its most recent SEC filing. Institutional investors and hedge funds own 41.65% of the company’s stock.

About Zai Lab

Zai Lab Ltd (NASDAQ: ZLAB) is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company’s end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company’s marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton’s tyrosine kinase inhibitor approved for several B-cell malignancies.