Zai Lab (NASDAQ:ZLAB) Shares Gap Up – Should You Buy?

Zai Lab Limited (NASDAQ:ZLAB) gapped up prior to trading on Thursday . The stock had previously closed at $33.91, but opened at $35.04. Zai Lab shares last traded at $35.99, with a volume of 146,411 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts have commented on ZLAB shares. Bank of America restated 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. Cantor Fitzgerald restated an “overweight” rating on shares of Zai Lab in a research note on Thursday. Scotiabank began coverage on shares of Zai Lab in a research note on Friday, March 7th. They issued a “sector outperform” rating and a $55.00 price objective for the company. Finally, JPMorgan Chase & Co. raised their target price on shares of Zai Lab from $44.00 to $51.00 and gave the company an “overweight” rating in a research report on Thursday, March 13th.

Zai Lab Trading Up 7.0 %

The firm has a market cap of $3.98 billion, a P/E ratio of -13.11 and a beta of 1.08. The firm has a 50-day simple moving average of $31.32 and a 200-day simple moving average of $28.07.

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

Insider Transactions at Zai Lab

In other news, insider Rafael Amado sold 7,583 shares of the business’s stock in a transaction dated Tuesday, December 31st. The stock was sold at an average price of $26.28, for a total transaction of $199,281.24. Following the sale, the insider now owns 33,834 shares in the company, valued at approximately $889,157.52. The trade was a 18.31 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Ying Du sold 50,000 shares of Zai Lab stock in a transaction on Friday, February 28th. The stock was sold at an average price of $34.47, for a total transaction of $1,723,500.00. Following the sale, the chief executive officer now owns 494,117 shares of the company’s stock, valued at $17,032,212.99. The trade was a 9.19 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 125,127 shares of company stock valued at $4,139,672 in the last 90 days. Insiders own 13.88% of the company’s stock.

Institutional Trading of Zai Lab

Hedge funds have recently modified their holdings of the stock. GF Fund Management CO. LTD. acquired a new position in Zai Lab in the fourth quarter valued at approximately $29,000. Public Employees Retirement System of Ohio increased its holdings in shares of Zai Lab by 20.8% during the 4th quarter. Public Employees Retirement System of Ohio now owns 18,480 shares of the company’s stock valued at $484,000 after purchasing an additional 3,179 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Zai Lab by 2.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 57,114 shares of the company’s stock worth $1,496,000 after buying an additional 1,200 shares in the last quarter. Woodline Partners LP boosted its holdings in Zai Lab by 9.4% during the fourth quarter. Woodline Partners LP now owns 1,759,797 shares of the company’s stock worth $46,089,000 after buying an additional 151,835 shares in the last quarter. Finally, Vestal Point Capital LP acquired a new stake in Zai Lab during the fourth quarter valued at $7,857,000. Hedge funds and other institutional investors own 41.65% of the company’s stock.

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.