Zai Lab (NASDAQ:ZLAB) Sees Large Volume Increase – Should You Buy?

Zai Lab Limited (NASDAQ:ZLAB) saw strong trading volume on Monday . 879,580 shares were traded during mid-day trading, an increase of 7% from the previous session’s volume of 824,697 shares.The stock last traded at $32.76 and had previously closed at $29.54.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Scotiabank initiated coverage on shares of Zai Lab in a research report on Friday, March 7th. They set a “sector outperform” rating and a $55.00 price target for the company. JPMorgan Chase & Co. increased their price target on shares of Zai Lab from $44.00 to $51.00 and gave the company an “overweight” rating in a research report on Thursday, March 13th. Bank of America reaffirmed a “neutral” rating and set a $36.10 price objective (up from $29.00) on shares of Zai Lab in a research note on Monday, March 3rd. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Zai Lab in a research note on Thursday, March 27th.

Zai Lab Price Performance

The stock’s 50 day moving average is $32.74 and its 200-day moving average is $29.12. The company has a market capitalization of $3.41 billion, a P/E ratio of -11.23 and a beta of 1.09.

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

Insiders Place Their Bets

In related news, CFO Yajing Chen sold 924 shares of the stock in a transaction dated Friday, April 4th. The shares were sold at an average price of $33.11, for a total transaction of $30,593.64. Following the sale, the chief financial officer now directly owns 27,047 shares of the company’s stock, valued at approximately $895,526.17. This represents a 3.30 % decrease in their position. The sale was disclosed in a document filed 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 dated Monday, March 3rd. The stock was sold at an average price of $32.44, for a total transaction of $1,622,000.00. Following the completion of the transaction, the chief executive officer now directly owns 494,117 shares of the company’s stock, valued at $16,029,155.48. This trade represents a 9.19 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 138,744 shares of company stock valued at $4,685,294. 13.88% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. GF Fund Management CO. LTD. bought a new stake in Zai Lab during the fourth quarter valued at approximately $29,000. Pictet Asset Management Holding SA bought a new stake in shares of Zai Lab during the 4th quarter valued at $31,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Zai Lab by 2.1% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 57,114 shares of the company’s stock worth $1,496,000 after purchasing an additional 1,200 shares in the last quarter. China Universal Asset Management Co. Ltd. raised its holdings in Zai Lab by 15.7% in the 4th quarter. China Universal Asset Management Co. Ltd. now owns 11,061 shares of the company’s stock worth $290,000 after purchasing an additional 1,502 shares during the period. Finally, Invesco Ltd. lifted its position in Zai Lab by 4.2% during the fourth quarter. Invesco Ltd. now owns 44,340 shares of the company’s stock valued at $1,161,000 after purchasing an additional 1,790 shares in the last quarter. 41.65% of the stock is owned by institutional investors.

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.