Zai Lab (NASDAQ:ZLAB) Announces Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Zai Lab (NASDAQ:ZLAB) released its earnings results on Thursday. The company reported ($0.33) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.28) by ($0.05), Zacks reports. Zai Lab had a negative return on equity of 27.32% and a negative net margin of 49.68%.The company had revenue of $116.10 million for the quarter, compared to the consensus estimate of $150.24 million. Zai Lab updated its FY 2025 guidance to EPS.

Zai Lab Price Performance

NASDAQ:ZLAB traded down $1.65 during trading hours on Thursday, reaching $23.15. 2,462,142 shares of the company were exchanged, compared to its average volume of 926,574. The company has a market capitalization of $2.59 billion, a P/E ratio of -11.35 and a beta of 1.07. Zai Lab has a 1-year low of $21.68 and a 1-year high of $44.34. The business has a 50 day moving average of $30.60 and a 200 day moving average of $33.15.

Insider Buying and Selling

In related news, insider Joshua L. Smiley purchased 10,000 shares of Zai Lab stock in a transaction that occurred on Wednesday, September 10th. The shares were acquired at an average price of $28.91 per share, with a total value of $289,100.00. Following the completion of the transaction, the insider directly owned 86,604 shares of the company’s stock, valued at $2,503,721.64. This represents a 13.05% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Yajing Chen sold 1,438 shares of the stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $35.42, for a total value of $50,933.96. Following the sale, the chief financial officer directly owned 16,720 shares in the company, valued at $592,222.40. This represents a 7.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 161,802 shares of company stock worth $5,656,695. 4.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zai Lab

An institutional investor recently raised its position in Zai Lab stock. Royal Bank of Canada raised its stake in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) by 214.3% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 13,771 shares of the company’s stock after purchasing an additional 9,390 shares during the period. Royal Bank of Canada’s holdings in Zai Lab were worth $498,000 at the end of the most recent quarter. 41.65% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

ZLAB has been the topic of several analyst reports. Jefferies Financial Group initiated coverage on Zai Lab in a report on Monday, August 25th. They set a “buy” rating and a $52.00 target price on the stock. Citigroup reiterated a “buy” rating and set a $69.00 target price (up previously from $66.00) on shares of Zai Lab in a report on Monday, August 11th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Zai Lab in a report on Wednesday, October 8th. Six equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Zai Lab currently has an average rating of “Moderate Buy” and a consensus price target of $56.35.

Zai Lab Company Profile

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.