Zai Lab (NASDAQ:ZLAB) Shares Gap Up – Should You Buy?

Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) gapped up before the market opened on Friday . The stock had previously closed at $17.51, but opened at $18.07. Zai Lab shares last traded at $17.95, with a volume of 120,258 shares traded.

Analysts Set New Price Targets

Several equities analysts have issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Zai Lab in a research note on Wednesday, January 21st. Zacks Research lowered shares of Zai Lab from a “hold” rating to a “strong sell” rating in a research report on Friday, January 23rd. UBS Group started coverage on shares of Zai Lab in a report on Wednesday, January 7th. They issued a “buy” rating and a $35.00 price target on the stock. Cantor Fitzgerald cut their price objective on shares of Zai Lab from $55.00 to $37.00 and set an “overweight” rating on the stock in a research report on Friday, February 27th. Finally, Jefferies Financial Group upgraded shares of Zai Lab to a “strong-buy” rating in a research note on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $50.00.

Zai Lab Stock Performance

The company has a 50 day moving average of $18.57 and a two-hundred day moving average of $22.17. The stock has a market capitalization of $2.03 billion, a PE ratio of -11.18 and a beta of 0.85.

Zai Lab (NASDAQ:ZLAB) last released its quarterly earnings results on Saturday, February 14th. The company reported ($0.50) EPS for the quarter. The business had revenue of $127.60 million during the quarter. Zai Lab had a negative net margin of 38.15% and a negative return on equity of 22.81%. As a group, research analysts predict that Zai Lab Limited Unsponsored ADR will post -2.58 EPS for the current fiscal year.

Insider Activity at Zai Lab

In related news, insider Joshua L. Smiley sold 1,966 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $18.63, for a total value of $36,626.58. Following the completion of the transaction, the insider directly owned 91,026 shares of the company’s stock, valued at $1,695,814.38. This trade represents a 2.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Yajing Chen sold 1,703 shares of the business’s stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $18.63, for a total transaction of $31,726.89. Following the sale, the chief financial officer directly owned 19,999 shares in the company, valued at approximately $372,581.37. This represents a 7.85% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 17,413 shares of company stock valued at $311,460. Company insiders own 4.96% of the company’s stock.

Hedge Funds Weigh In On Zai Lab

A hedge fund recently bought a new stake in Zai Lab stock. SG Americas Securities LLC bought a new position in Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) in the third quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 9,754 shares of the company’s stock, valued at approximately $331,000. Hedge funds and other 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.