Zai Lab (NASDAQ:ZLAB) Trading Down 4.6% – Time to Sell?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB)’s share price dropped 4.6% during mid-day trading on Friday . The company traded as low as $25.61 and last traded at $25.7690. Approximately 66,963 shares were traded during trading, a decline of 92% from the average daily volume of 858,776 shares. The stock had previously closed at $27.00.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on ZLAB. Citigroup increased their price objective on shares of Zai Lab from $44.00 to $45.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Wall Street Zen lowered Zai Lab from a “hold” rating to a “sell” rating in a report on Saturday, May 16th. Weiss Ratings raised Zai Lab from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, July 29th. Finally, Zacks Research upgraded shares of Zai Lab from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, four 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 data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $37.25.

Zai Lab Price Performance

The company has a market cap of $2.95 billion, a PE ratio of -15.14 and a beta of 0.83. The company’s fifty day moving average price is $21.91 and its 200 day moving average price is $20.32.

Zai Lab (NASDAQ:ZLAB) last issued its quarterly earnings results on Tuesday, June 30th. The company reported ($0.50) EPS for the quarter. Zai Lab had a negative return on equity of 27.43% and a negative net margin of 41.86%.The business had revenue of $106.31 million for the quarter. On average, analysts forecast that Zai Lab Limited Unsponsored ADR will post -2.17 EPS for the current year.

Insider Buying and Selling

In related news, Director William Lis sold 8,506 shares of Zai Lab stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $25.00, for a total value of $212,650.00. Following the sale, the director owned 41,931 shares of the company’s stock, valued at approximately $1,048,275. The trade was a 16.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Yajing Chen sold 2,264 shares of the company’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $17.46, for a total value of $39,529.44. Following the transaction, the chief financial officer directly owned 35,691 shares in the company, valued at $623,164.86. This represents a 5.96% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 50,258 shares of company stock valued at $960,741. 4.88% of the stock is owned by insiders.

Institutional Trading of Zai Lab

Several hedge funds and other institutional investors have recently modified their holdings of ZLAB. Seven Fleet Capital Management LP raised its position in shares of Zai Lab by 74.7% in the second quarter. Seven Fleet Capital Management LP now owns 136,016 shares of the company’s stock valued at $2,584,000 after purchasing an additional 58,158 shares during the period. Headlands Technologies LLC lifted its holdings in Zai Lab by 142.0% during the 2nd quarter. Headlands Technologies LLC now owns 68,010 shares of the company’s stock worth $1,292,000 after purchasing an additional 39,901 shares in the last quarter. Finally, Royal Bank of Canada increased its holdings in Zai Lab by 214.3% during the 1st quarter. Royal Bank of Canada now owns 13,771 shares of the company’s stock worth $498,000 after acquiring an additional 9,390 shares during the period. Institutional investors own 41.65% of the company’s stock.

About Zai Lab

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.