Zai Lab (NASDAQ:ZLAB) Shares Gap Down - Should You Sell?

Shares of Zai Lab Limited (NASDAQ:ZLAB - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $31.52, but opened at $30.74. Zai Lab shares last traded at $30.73, with a volume of 182,986 shares.

Wall Street Analysts Forecast Growth

ZLAB has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. boosted their price objective on Zai Lab from $44.00 to $51.00 and gave the company an "overweight" rating in a report on Thursday, March 13th. Cantor Fitzgerald restated an "overweight" rating on shares of Zai Lab in a report on Thursday, March 27th. Scotiabank started coverage on shares of Zai Lab in a report on Friday, March 7th. They set a "sector outperform" rating and a $55.00 price objective for the company. Finally, Bank of America reissued a "neutral" rating and issued a $36.10 price objective (up from $29.00) on shares of Zai Lab in a research report on Monday, March 3rd.

Zai Lab Trading Down 0.3 %

The stock has a 50-day simple moving average of $32.97 and a two-hundred day simple moving average of $29.26. The firm has a market capitalization of $3.16 billion, a P/E ratio of -10.41 and a beta of 1.09.

Zai Lab (NASDAQ:ZLAB - Get Free Report) last issued its earnings results on Thursday, February 27th. The company reported ($0.80) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.61) by ($0.19). The business had revenue of $109.07 million for the quarter, compared to the consensus estimate of $110.15 million. Zai Lab had a negative return on equity of 36.97% and a negative net margin of 76.14%. As a group, research analysts expect that Zai Lab Limited will post -2.58 EPS for the current year.

Insider Activity at Zai Lab

In other Zai Lab news, insider Frazor Titus Edmondson III sold 14,544 shares of the stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $32.98, for a total transaction of $479,661.12. Following the completion of the sale, the insider now directly owns 14,328 shares of the company's stock, valued at approximately $472,537.44. This represents a 50.37 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Ying Du sold 50,000 shares of Zai Lab stock in a transaction that occurred on Friday, February 28th. The stock was sold at an average price of $34.47, for a total transaction of $1,723,500.00. Following the completion of the transaction, the chief executive officer now directly owns 494,117 shares in the company, valued at approximately $17,032,212.99. The trade was a 9.19 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 138,744 shares of company stock valued at $4,685,294 over the last ninety days. 13.88% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zai Lab

Several institutional investors have recently bought and sold shares of the company. GF Fund Management CO. LTD. purchased a new stake in shares of Zai Lab during the 4th quarter valued at $29,000. Pictet Asset Management Holding SA acquired a new stake in Zai Lab in the fourth quarter worth about $31,000. Barclays PLC grew its stake in shares of Zai Lab by 337.6% during the fourth quarter. Barclays PLC now owns 3,702 shares of the company's stock worth $97,000 after acquiring an additional 2,856 shares during the last quarter. US Bancorp DE increased its holdings in shares of Zai Lab by 1,671.9% during the fourth quarter. US Bancorp DE now owns 5,865 shares of the company's stock valued at $154,000 after acquiring an additional 5,534 shares in the last quarter. Finally, Jasper Ridge Partners L.P. purchased a new position in shares of Zai Lab in the 4th quarter valued at approximately $210,000. 41.65% of the stock is currently owned by institutional investors and hedge funds.

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.