Zai Lab (NASDAQ:ZLAB) Trading Down 3.5% – Time to Sell?

Zai Lab Limited (NASDAQ:ZLAB)’s stock price dropped 3.5% on Wednesday . The stock traded as low as $35.58 and last traded at $35.99. Approximately 110,429 shares traded hands during trading, a decline of 86% from the average daily volume of 766,441 shares. The stock had previously closed at $37.29.

Wall Street Analysts Forecast Growth

ZLAB has been the subject of a number of research analyst reports. Scotiabank started coverage on shares of Zai Lab in a report on Friday, March 7th. They issued a “sector outperform” rating and a $55.00 price target for the company. Bank of America reaffirmed a “neutral” rating and set a $36.10 price target (up previously from $29.00) on shares of Zai Lab in a research report on Monday, March 3rd. Cantor Fitzgerald reissued an “overweight” rating on shares of Zai Lab in a report on Thursday, March 27th. Finally, JPMorgan Chase & Co. lifted their target price on Zai Lab from $44.00 to $51.00 and gave the stock an “overweight” rating in a report on Thursday, March 13th.

Zai Lab Trading Down 4.7 %

The company has a market capitalization of $3.90 billion, a price-to-earnings ratio of -12.85 and a beta of 1.07. The firm has a 50-day simple moving average of $32.19 and a two-hundred day simple moving average of $28.58.

Zai Lab (NASDAQ:ZLAB) last announced its quarterly earnings results on Thursday, February 27th. The company reported ($0.80) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.61) by ($0.19). The company had revenue of $109.07 million during the quarter, compared to analyst estimates of $110.15 million. Zai Lab had a negative net margin of 76.14% and a negative return on equity of 36.97%. Equities research analysts anticipate that Zai Lab Limited will post -2.58 EPS for the current year.

Insider Buying and Selling at Zai Lab

In other Zai Lab news, insider Rafael Amado sold 3,000 shares of the company’s stock in a transaction on Monday, March 17th. The shares were sold at an average price of $38.41, for a total transaction of $115,230.00. Following the completion of the transaction, the insider now directly owns 30,834 shares in the company, valued at approximately $1,184,333.94. This represents a 8.87 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Frazor Titus Edmondson III sold 14,544 shares of Zai Lab stock in a transaction dated Friday, February 28th. The shares were 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 owns 14,328 shares in the company, valued at approximately $472,537.44. This trade represents a 50.37 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 117,544 shares of company stock valued at $3,940,391. Corporate insiders own 13.88% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. The Manufacturers Life Insurance Company boosted its stake in shares of Zai Lab by 3.3% in the third quarter. The Manufacturers Life Insurance Company now owns 121,084 shares of the company’s stock worth $2,923,000 after acquiring an additional 3,860 shares during the last quarter. PEAK6 Investments LLC purchased a new stake in shares of Zai Lab during the third quarter worth $386,000. Erste Asset Management GmbH acquired a new stake in shares of Zai Lab in the third quarter valued at about $357,000. Bamco Inc. NY lifted its stake in shares of Zai Lab by 6.4% in the third quarter. Bamco Inc. NY now owns 1,906,520 shares of the company’s stock worth $46,023,000 after buying an additional 113,869 shares in the last quarter. Finally, Janus Henderson Group PLC raised its holdings in Zai Lab by 34.2% in the 3rd quarter. Janus Henderson Group PLC now owns 8,760,074 shares of the company’s stock valued at $211,488,000 after acquiring an additional 2,232,507 shares during the last quarter. 41.65% of the stock is owned by hedge funds and other institutional investors.

About Zai Lab

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.