Zai Lab (NASDAQ:ZLAB) Stock Jumps 3.8% – What’s Next?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB)’s share price rose 3.8% during mid-day trading on Monday. The stock traded as high as $26.12 and last traded at $25.93. 164,998 shares were traded during mid-day trading, a decline of 81% from the average session volume of 859,881 shares. The stock had previously closed at $24.98.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ZLAB. Zacks Research upgraded Zai Lab from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 7th. Wall Street Zen raised shares of Zai Lab from a “sell” rating to a “hold” rating in a research note on Saturday. Citigroup increased their price objective on shares of Zai Lab from $44.00 to $45.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Weiss Ratings upgraded shares of Zai Lab from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, July 29th. One equities 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Zai Lab presently has a consensus rating of “Moderate Buy” and a consensus target price of $37.25.

Zai Lab Stock Up 4.1%

The company has a market capitalization of $2.96 billion, a price-to-earnings ratio of -15.21 and a beta of 0.83. The stock’s fifty day moving average price is $23.80 and its 200-day moving average price is $20.99.

Zai Lab (NASDAQ:ZLAB) last released its earnings results on Tuesday, June 30th. The company reported ($0.50) earnings per share (EPS) for the quarter. The company had revenue of $106.31 million for the quarter. Zai Lab had a negative return on equity of 27.43% and a negative net margin of 41.86%. Analysts anticipate that Zai Lab Limited Unsponsored ADR will post -2.37 EPS for the current year.

Insider Buying and Selling

In other Zai Lab news, Director William Lis sold 8,506 shares of the company’s stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $25.00, for a total value of $212,650.00. Following the transaction, the director directly owned 41,931 shares of the company’s stock, valued at $1,048,275. This represents a 16.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Ying Du sold 7,026 shares of the company’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $18.53, for a total transaction of $130,191.78. Following the completion of the transaction, the chief executive officer owned 1,203,784 shares in the company, valued at $22,306,117.52. This trade represents a 0.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 16,411 shares of company stock valued at $365,337. Corporate insiders own 4.88% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Headlands Technologies LLC boosted its position in Zai Lab by 142.0% in the second quarter. Headlands Technologies LLC now owns 68,010 shares of the company’s stock valued at $1,292,000 after buying an additional 39,901 shares in the last quarter. Seven Fleet Capital Management LP increased its holdings in shares of 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 in the last quarter. Finally, Nykredit A S bought a new position in shares of Zai Lab in the 2nd quarter valued at $79,000. 41.65% of the stock is currently owned by institutional investors and hedge funds.

About Zai Lab

Zai Lab Limited is a biopharmaceutical company focused on discovering, developing and commercializing medicines for significant unmet medical needs. The company’s research and development activities have centered on oncology, autoimmune and inflammatory diseases, infectious diseases, and neuroscience. Zai Lab operates through a combination of internally developed programs and collaborations with global pharmaceutical and biotechnology companies.

The company has built a commercial portfolio in Greater China that has included ZEJULA (niraparib), a PARP inhibitor used in certain ovarian cancer settings; QINLOCK (ripretinib), a treatment for gastrointestinal stromal tumors; and NUZYRA (omadacycline), an antibiotic for certain bacterial infections.