Zai Lab (NASDAQ:ZLAB) Shares Up 9.3% – Should You Buy?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB)’s share price rose 9.3% on Wednesday . The company traded as high as $19.41 and last traded at $19.36. Approximately 320,064 shares traded hands during mid-day trading, a decline of 56% from the average daily volume of 735,128 shares. The stock had previously closed at $17.72.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. UBS Group assumed coverage on Zai Lab in a research note on Wednesday, January 7th. They set a “buy” rating and a $35.00 target price for the company. Cantor Fitzgerald dropped their target price on shares of Zai Lab from $55.00 to $37.00 and set an “overweight” rating on the stock in a research report on Friday, February 27th. Zacks Research cut shares of Zai Lab from a “hold” rating to a “strong sell” rating in a research report on Friday, January 23rd. JPMorgan Chase & Co. dropped their price objective on Zai Lab from $46.00 to $39.00 and set an “overweight” rating on the stock in a report on Thursday, February 5th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Zai Lab in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $51.71.

Zai Lab Price Performance

The stock has a 50 day moving average of $18.46 and a two-hundred day moving average of $23.92. The stock has a market capitalization of $2.19 billion, a PE ratio of -12.06 and a beta of 0.85.

Zai Lab (NASDAQ:ZLAB) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.46) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.44) by ($0.02). Zai Lab had a negative return on equity of 22.81% and a negative net margin of 38.15%.The company had revenue of $127.60 million for the quarter, compared to analyst estimates of $122.67 million. As a group, research analysts predict that Zai Lab Limited Unsponsored ADR will post -2.58 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zai Lab news, insider Rafael Amado sold 10,787 shares of the stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $17.43, for a total transaction of $188,017.41. Following the transaction, the insider owned 52,391 shares of the company’s stock, valued at $913,175.13. This represents a 17.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders own 4.96% of the company’s stock.

Hedge Funds Weigh In On Zai Lab

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

Zai Lab Company Profile

Zai Lab Ltd (NASDAQ: ZLAB) is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company’s end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company’s marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton’s tyrosine kinase inhibitor approved for several B-cell malignancies.