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Zai Lab Limited (ZLAB): Are Investors Missing The Big Picture?

Zai Lab Limited (NASDAQ:ZLAB) does about 662.36K shares in volume on a normal day but saw 292177 shares change hands in Friday trading. The company now has a market cap of 3.82B USD. Its current market price is $37.38, marking an increase of 0.70% compared to the previous close of $37.12. The 52 week high reached by this stock is $61.29 whilst the lowest price level in 52 weeks is $20.98. The script in recent trading has seen the stock touch a high of $38.06 and a low of $36.59.

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Zai Lab Limited (ZLAB) has a 20-day trading average at $40.97 and the current price is -39.01% off the 52-week high compared with 78.21% distance from its 52-week low. The 50-day simple moving average of the closing price is $38.41 and its 200-day simple moving average is $36.61. If we look at the stock’s price movements over the week, volatility stands at 5.32%, which decreases to 4.85% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 43.16 to suggest the stock is neutral.

13 analysts observing the Zai Lab Limited (ZLAB) stock have set the 12-month price targets for the company’s shares at between $25.55 and $138.00. The consensus objective for the share price is $83.48, suggesting that the stock has a potential upside of 55.22% over the period. The median price target is 51.45% away from the current levels at $77.00.

FactSet Research has provided data showing that 13 brokerages have issued ratings for the stock. 1 analysts have rated it as a sell, while 0 advise that it is a overweight. 11 analysts have rated it as a buy and 1 have advised that investors hold their positions. The consensus recommendation rating is Buy and Wall Street’s advice is for investors to Strong Buy the stock.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on January 21, 2022 when Macquarie initiated the stock to “Outperform” and issued a price target of $64.

The current price level is -9.66%, -2.51%, and 2.07% away from its SMA20, SMA50, and SMA200 respectively, with the ZLAB price moving above the 50-day SMA on February 17. Zai Lab Limited (ZLAB) stock is down -1.24% over the week and -18.19% over the past month. Its price is 21.76% year-to-date and -36.37% over the past year.

The stock last released its quarterly earnings report for quarter ended 6/29/2022, with the company’s earnings per share (EPS) of -$1.44 below consensus estimates by -$0.36. The company’s next earnings report is expected on 05/09/2023, with forecasts estimating quarterly EPS at -$1.24 and -$4.96 for whole year. ZLAB’s earnings per share are forecast to grow by 34.60% this year and 14.90% over next year. Expected sales for next quarter are $62.25 million, which analysts say will come at $212.8 million for the current fiscal year and next year at $340.65 million. In addition, estimates put the company’s current quarterly revenue at an average of $54.98 million.

Its 12-month price target is $77.00. To reach the target analysts have set, the stock logically needs to grow 55.22 percent from here. Of course, the average price target is just what the average analysts believe a stock will be worth in the next 52 weeks, and is only one metric. There are analysts with lower targets than the average, including one bearish Wall Street research firm advocating investors to wait for the price to pull back to $25.55, given the recent momentum. And then, on the bullish side of things, one analyst is expecting the stock to peak at $138.00.

Outstanding shares total 97.91M with insiders holding 0.09% of the shares and institutional holders owning 71.58% of the company’s common stock. The company has a return on investment of -50.70% and return on equity of -47.40%. The beta has a value of 1.17. Price to book ratio is 3.24 and price to sales ratio is 19.45.

Invesco Developing Markets Fund isn’t the only investment manager who changed stakes and is followed by CS Invt Fds 2 -, which added 0.41 million shares to end up with 2,370,000 shares worth $99.87 million. Vanguard Emerging Markets Stock I raise their holdings by 0.84% in the company over the course of the most recent quarter. It now holds a 1.32% position in Zai Lab Limited thanks to 1.29 million shares amounting to $54.29 million.

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