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Du Ying, the Chairperson and CEO of Zai Lab Ltd (NASDAQ:ZLAB), recently executed several transactions involving the company’s American Depositary Shares. On February 28 and March 3, Ying sold a total of 75,000 shares, generating approximately $3.35 million. The sales were conducted through a pre-established trading plan, with prices ranging from $31.75 to $35.06 per share. The transactions come as Zai Lab, currently valued at $3.4 billion, has seen its stock surge over 60% in the past six months. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value estimates.
Additionally, Ying exercised stock options to acquire 100,000 shares at a price of $0.60 per share. Following these transactions, Ying’s direct ownership stands at 494,117 shares. These activities were disclosed in a recent SEC filing, reflecting strategic financial decisions by the company’s executive. Analysts maintain a strong buy consensus on the stock, with price targets reaching as high as $74. For deeper insights into insider trading patterns and comprehensive analysis, InvestingPro subscribers can access detailed research reports covering over 1,400 US stocks.
In other recent news, Zai Lab has experienced a shift in its stock rating as BofA Securities downgraded it from Buy to Neutral. Despite this downgrade, the firm raised its price target for the company from $29.00 to $36.10. This adjustment reflects BofA Securities’ revised revenue forecasts, which maintain current estimates through 2025-26 but project an increase of over 5% starting in 2027. Analysts at BofA Securities highlighted the underwhelming performance of Zejula/Optune, which has impacted near-term growth expectations. However, they noted encouraging sales growth for VYVGART and progress in the company’s pipeline, including sales estimates for AUGTYRO targeting NTRK+ solid tumor indications. The financial model adjustments also included a revised beta and weighted average cost of capital, which supported the updated price objective. Despite concerns about the growth slowdown of core products, BofA Securities acknowledged the promising developments in Zai Lab’s pipeline, such as Optune’s potential for pancreatic cancer, KarXT, and Bemarituzumab. Investors are closely monitoring Zai Lab’s response to these developments in its product offerings and pipeline.
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