Zenas BioPharma (NASDAQ:ZBIO) Stock Price Down 6.2% After Earnings Miss

Zenas BioPharma, Inc. (NASDAQ:ZBIO)’s share price dropped 6.2% during trading on Monday following a dissappointing earnings announcement. The company traded as low as $21.48 and last traded at $22.54. Approximately 132,541 shares were traded during trading, a decline of 86% from the average daily volume of 933,859 shares. The stock had previously closed at $24.04.

The company reported ($4.54) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.22) by ($3.32).

Trending Headlines about Zenas BioPharma

Here are the key news stories impacting Zenas BioPharma this week:

• Positive Sentiment: Citigroup cut its price target modestly to $41 but kept a “Buy” rating, signaling continued analyst conviction in Zenas’ mid‑term upside. Citigroup PT cut to $41
• Positive Sentiment: HC Wainwright reaffirmed its “Buy” rating and a $44 target, supporting the bullish analyst camp and underpinning upside expectations for lead assets like obexelimab. HC Wainwright buy rating
• Positive Sentiment: Coverage and reporting highlight funding and liquidity that support continued development of obexelimab, reducing near‑term financing risk for the program. Funding supports obexelimab
• Positive Sentiment: Large insider and institutional buying noted in recent filings (Quiver summary), which can signal management confidence and provide a supportive shareholder base. Quiver insider & institutional activity
• Neutral Sentiment: Morgan Stanley raised its target to $21 and kept a Hold/Equal Weight stance — a mixed signal (smaller upside vs. current price) that reflects balanced near‑term expectations. Morgan Stanley target to $21
• Neutral Sentiment: Zenas granted inducement stock options and RSUs to new hires (235,700 options; 33,450 RSUs) to support recruitment — positive for talent but dilutive over time. Inducement grants press release
• Neutral Sentiment: Disclosure of executive compensation (Quiver summary) and other filings add transparency but are not material catalysts by themselves. Executive pay disclosure
• Negative Sentiment: Major earnings miss: Zenas reported GAAP EPS of -$4.54 vs. consensus around -$1.22, a significant downside surprise that pressures the stock and raises near‑term execution/financial concern. Earnings press release / report
• Negative Sentiment: Zenas disclosed an IPO‑related securities class action, adding legal and financial uncertainty that could weigh on valuation until resolved. Class action risk disclosure

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on ZBIO. Jefferies Financial Group reissued a “buy” rating and issued a $48.00 price objective on shares of Zenas BioPharma in a report on Tuesday, January 6th. Wall Street Zen upgraded shares of Zenas BioPharma from a “sell” rating to a “hold” rating in a report on Saturday, February 21st. Morgan Stanley increased their price target on shares of Zenas BioPharma from $19.00 to $21.00 and gave the company an “equal weight” rating in a research note on Tuesday. HC Wainwright reaffirmed a “buy” rating and set a $44.00 price target on shares of Zenas BioPharma in a research report on Tuesday. Finally, Guggenheim upped their price objective on Zenas BioPharma from $45.00 to $55.00 and gave the company a “buy” rating in a report on Monday. Six investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $44.14.

Insider Buying and Selling at Zenas BioPharma

In related news, Director Patricia L. Allen bought 15,700 shares of the stock in a transaction on Thursday, February 12th. The stock was bought at an average price of $24.85 per share, with a total value of $390,145.00. Following the completion of the purchase, the director directly owned 15,700 shares in the company, valued at $390,145. This represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Leon O. Moulder, Jr. purchased 57,000 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were bought at an average price of $17.96 per share, with a total value of $1,023,720.00. Following the completion of the transaction, the chief executive officer owned 423,155 shares of the company’s stock, valued at approximately $7,599,863.80. The trade was a 15.57% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 202,845 shares of company stock valued at $3,747,185 over the last 90 days. 16.50% of the stock is owned by insiders.

Institutional Trading of Zenas BioPharma

Several institutional investors have recently added to or reduced their stakes in the stock. Quarry LP raised its position in Zenas BioPharma by 34.5% in the third quarter. Quarry LP now owns 1,134 shares of the company’s stock valued at $25,000 after purchasing an additional 291 shares during the period. Russell Investments Group Ltd. purchased a new position in shares of Zenas BioPharma during the third quarter worth $30,000. GF Fund Management CO. LTD. acquired a new stake in shares of Zenas BioPharma in the fourth quarter valued at $38,000. BNP Paribas Financial Markets grew its stake in shares of Zenas BioPharma by 120.0% in the third quarter. BNP Paribas Financial Markets now owns 3,146 shares of the company’s stock valued at $70,000 after buying an additional 1,716 shares in the last quarter. Finally, CWM LLC raised its holdings in shares of Zenas BioPharma by 48.3% in the 4th quarter. CWM LLC now owns 2,178 shares of the company’s stock valued at $79,000 after buying an additional 709 shares during the period.

Zenas BioPharma Price Performance

The company has a fifty day moving average of $22.78 and a 200-day moving average of $27.18. The company has a current ratio of 5.66, a quick ratio of 5.66 and a debt-to-equity ratio of 0.37. The stock has a market cap of $1.26 billion, a PE ratio of -3.01 and a beta of -1.94.

Zenas BioPharma Company Profile

Zenas BioPharma, Inc is a clinical-stage biotechnology company focused on the discovery and development of novel therapies in oncology and infectious diseases. The company’s proprietary platform integrates structure-guided design, computational modeling and high-throughput screening to address challenging protein-protein interactions. Zenas BioPharma is advancing multiple preclinical and clinical-stage candidates aimed at providing new treatment options where current modalities may be limited by efficacy or safety concerns.

Founded in 2021 and headquartered in Cambridge, Massachusetts, Zenas BioPharma was built to streamline the drug discovery process from target identification through to IND-enabling studies.