Zymeworks (NASDAQ:ZYME) Trading 8.6% Higher – Here’s What Happened

Zymeworks Inc. (NASDAQ:ZYME)’s stock price traded up 8.6% during mid-day 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 Stories Impacting Zymeworks

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

A number of equities research analysts recently commented on ZYME shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Zymeworks in a research report on Monday, April 20th. Stifel Nicolaus raised their price target on shares of Zymeworks from $40.00 to $47.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Wells Fargo & Company lifted their price objective on shares of Zymeworks from $34.00 to $37.00 and gave the company an “overweight” rating in a research note on Tuesday. Citigroup reaffirmed a “buy” rating on shares of Zymeworks in a report on Tuesday. Finally, Leerink Partners increased their price objective on shares of Zymeworks from $52.00 to $58.00 and gave the stock an “outperform” rating in a research note 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 given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Zymeworks presently has an average rating of “Moderate Buy” and a consensus price target of $37.00.

Zymeworks Stock Up 10.6%

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

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

Zymeworks announced that its board has approved a stock buyback program on Thursday, May 14th that authorizes the company to repurchase $125.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 7% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Zymeworks

Several institutional investors have recently made changes to their positions in the company. Rubric Capital Management LP lifted its stake in shares of Zymeworks by 21.7% in the 1st quarter. Rubric Capital Management LP now owns 7,000,000 shares of the company’s stock valued at $175,280,000 after purchasing an additional 1,250,000 shares during the period. Perceptive Advisors LLC increased its holdings in Zymeworks by 7.6% in the first quarter. Perceptive Advisors LLC now owns 3,510,078 shares of the company’s stock valued at $87,892,000 after buying an additional 248,228 shares in the last quarter. Vanguard Group Inc. increased its holdings in Zymeworks by 8.1% in the fourth quarter. Vanguard Group Inc. now owns 2,328,727 shares of the company’s stock valued at $61,315,000 after buying an additional 174,293 shares in the last quarter. Vestal Point Capital LP raised its position in shares of Zymeworks by 53.5% in the third quarter. Vestal Point Capital LP now owns 1,765,000 shares of the company’s stock worth $30,146,000 after acquiring an additional 615,000 shares during the period. Finally, Siren L.L.C. purchased a new stake in shares of Zymeworks during the 4th quarter worth about $44,238,000. 92.89% of the stock is owned by hedge funds and other institutional investors.

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.