Zai Lab (NASDAQ:ZLAB) Shares Gap Up After Better-Than-Expected Earnings

Zai Lab Limited (NASDAQ:ZLAB) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $16.57, but opened at $20.05. Zai Lab shares last traded at $20.79, with a volume of 737,974 shares changing hands.

The company reported ($0.55) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.93) by $0.38. Zai Lab had a negative net margin of 125.46% and a negative return on equity of 37.07%. The firm had revenue of $87.15 million for the quarter, compared to the consensus estimate of $77.07 million. During the same period in the prior year, the firm posted ($0.51) earnings per share.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the company. Cantor Fitzgerald restated an “overweight” rating on shares of Zai Lab in a research note on Friday, January 12th. Citigroup cut their price objective on Zai Lab from $123.00 to $66.00 and set a “buy” rating for the company in a research report on Thursday, February 29th. Five investment analysts have rated the stock with a buy rating, According to MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $64.22.

Insider Activity at Zai Lab

In other Zai Lab news, insider Rafael Amado sold 2,544 shares of the business’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $18.86, for a total transaction of $47,979.84. Following the completion of the sale, the insider now directly owns 20,093 shares in the company, valued at approximately $378,953.98. The transaction was disclosed in a document filed with the SEC, which is available through this link. In related news, insider Joshua L. Smiley sold 1,988 shares of the company’s stock in a transaction dated Thursday, April 4th. The shares were sold at an average price of $15.67, for a total transaction of $31,151.96. Following the completion of the sale, the insider now owns 28,684 shares of the company’s stock, valued at approximately $449,478.28. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Rafael Amado sold 2,544 shares of the business’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $18.86, for a total value of $47,979.84. Following the transaction, the insider now owns 20,093 shares in the company, valued at $378,953.98. The disclosure for this sale can be found here. In the last three months, insiders have sold 12,568 shares of company stock valued at $208,508. 5.23% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zai Lab

Several hedge funds and other institutional investors have recently made changes to their positions in ZLAB. China Universal Asset Management Co. Ltd. increased its holdings in shares of Zai Lab by 68.4% during the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 1,371 shares of the company’s stock worth $33,000 after buying an additional 557 shares during the last quarter. BNP Paribas Financial Markets increased its stake in Zai Lab by 51.2% during the first quarter. BNP Paribas Financial Markets now owns 2,671 shares of the company’s stock worth $43,000 after acquiring an additional 904 shares during the last quarter. PNC Financial Services Group Inc. raised its position in Zai Lab by 58.5% in the third quarter. PNC Financial Services Group Inc. now owns 1,896 shares of the company’s stock valued at $46,000 after purchasing an additional 700 shares during the period. Headlands Technologies LLC acquired a new position in shares of Zai Lab in the 1st quarter valued at $64,000. Finally, Tower Research Capital LLC TRC grew its holdings in shares of Zai Lab by 1,923.8% during the 4th quarter. Tower Research Capital LLC TRC now owns 2,550 shares of the company’s stock worth $70,000 after purchasing an additional 2,424 shares during the period. Institutional investors and hedge funds own 41.65% of the company’s stock.

Zai Lab Stock Performance

The stock has a market capitalization of $2.08 billion, a price-to-earnings ratio of -6.09 and a beta of 1.11. The business has a 50-day moving average of $16.78 and a 200-day moving average of $22.11.

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis.