Zymeworks (NASDAQ:ZYME) Trading Up 8.6% – Time to Buy?

Zymeworks Inc. (NASDAQ:ZYME) shares rose 8.6% during trading on Tuesday . The stock traded as high as $26.03 and last traded at $26.17. 105,316 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 708,590 shares. The stock had previously closed at $24.10.

Key Zymeworks News

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: Zymeworks agreed to buy Theravance Biopharma for $929 million in cash, a deal that expands its portfolio beyond oncology and adds the COPD drug YUPELRI®. Zymeworks to Acquire Theravance Biopharma, Inc.
• Positive Sentiment: The acquisition could improve Zymeworks’ growth profile by adding a marketed respiratory asset and creating more diversified revenue opportunities. Zymeworks strikes $929 million deal for Theravance Biopharma
• Neutral Sentiment: Investors are awaiting more details on financing and integration, which could determine whether the transaction is accretive or adds near-term pressure. Zymeworks to Buy Theravance Biopharma for About $929 Million

Wall Street Analysts Forecast Growth

ZYME has been the topic of several analyst reports. Citigroup reiterated a “buy” rating on shares of Zymeworks in a research note on Tuesday. Truist Financial set a $28.00 price objective on shares of Zymeworks and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Zymeworks in a research note on Monday, April 20th. Wells Fargo & Company boosted their price objective on shares of Zymeworks from $34.00 to $37.00 and gave the stock an “overweight” rating in a research note on Tuesday. Finally, Stifel Nicolaus increased their target price on shares of Zymeworks from $40.00 to $47.00 and gave the company a “buy” rating in a research report on Tuesday, March 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Zymeworks currently has a consensus rating of “Moderate Buy” and an average price target of $37.00.

Zymeworks Stock Up 10.6%

The business has a 50 day simple moving average of $25.05 and a 200 day simple moving average of $24.70. The company has a market capitalization of $1.95 billion, a PE ratio of -19.35 and a beta of 1.15.

Zymeworks (NASDAQ:ZYME) last issued its quarterly earnings results on Tuesday, March 31st. The company reported ($0.59) earnings per share for the quarter. Zymeworks had a negative return on equity of 37.97% and a negative net margin of 126.92%.The business had revenue of $2.41 million for the quarter. Equities analysts expect that Zymeworks Inc. will post 1.1 EPS for the current fiscal year.

Zymeworks announced that its board has approved a share repurchase program on Thursday, May 14th that authorizes the company to repurchase $125.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 7% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Zymeworks during the fourth quarter worth $37,000. Quarry LP purchased a new position in Zymeworks in the 3rd quarter worth $50,000. Tower Research Capital LLC TRC raised its stake in Zymeworks by 29.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company’s stock worth $62,000 after acquiring an additional 1,131 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in Zymeworks by 25.2% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,637 shares of the company’s stock worth $96,000 after acquiring an additional 731 shares during the period. Finally, BNP Paribas Financial Markets lifted its position in Zymeworks by 157.7% during the 2nd quarter. BNP Paribas Financial Markets now owns 10,307 shares of the company’s stock worth $129,000 after acquiring an additional 6,307 shares during the period. Institutional investors and hedge funds own 92.89% of the company’s stock.

About Zymeworks

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks’ innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.