Zai Lab (NASDAQ:ZLAB) Shares Gap Down – Here’s Why

Shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) gapped down before the market opened on Tuesday. The stock had previously closed at $24.34, but opened at $23.10. Zai Lab shares last traded at $22.6470, with a volume of 150,486 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Zacks Research upgraded shares of Zai Lab from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Zai Lab in a report on Tuesday, October 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Zai Lab in a research note on Tuesday. Citigroup boosted their price target on Zai Lab from $44.00 to $45.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, Wall Street Zen raised Zai Lab from a “sell” rating to a “hold” rating in a research report on Saturday, September 26th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $37.25.

Zai Lab Price Performance

The stock’s 50-day moving average price is $25.10 and its 200 day moving average price is $20.92. The firm has a market cap of $2.62 billion, a P/E ratio of -13.47 and a beta of 0.73.

Zai Lab (NASDAQ:ZLAB) last announced its 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 forecast that Zai Lab Limited Unsponsored ADR will post -2.37 EPS for the current fiscal year.

Insider Buying and Selling at Zai Lab

In related news, Director William Lis sold 8,506 shares of Zai Lab stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $25.00, for a total value of $212,650.00. Following the sale, the director owned 41,931 shares of the company’s stock, valued at approximately $1,048,275. The trade was a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last three months, insiders sold 9,385 shares of company stock valued at $235,145. 4.88% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ZLAB. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Zai Lab during the 3rd quarter worth approximately $62,000. China Universal Asset Management Co. Ltd. bought a new position in shares of Zai Lab in the third quarter valued at $211,000. WealthPlan Investment Management LLC bought a new position in shares of Zai Lab in the third quarter valued at $969,000. Nykredit A S bought a new position in shares of Zai Lab in the second quarter valued at $79,000. Finally, Seven Fleet Capital Management LP increased its holdings in Zai Lab by 74.7% during the second quarter. Seven Fleet Capital Management LP now owns 136,016 shares of the company’s stock worth $2,584,000 after buying an additional 58,158 shares during the last quarter. 41.65% of the stock is owned by institutional investors and hedge funds.

About Zai Lab

Zai Lab Ltd. (NASDAQ:ZLAB) is a biopharmaceutical company focused on discovering, developing and commercializing medicines for cancer and other serious diseases. Its research and development activities have included oncology, autoimmune and inflammatory disorders, neuroscience, infectious diseases and other areas of significant unmet medical need.

Founded in 2014, Zai Lab has built its business through a combination of internally developed programs and licensing or collaboration agreements with international pharmaceutical and biotechnology companies.