LexinFintech (NASDAQ:LX) Stock Price Down 7.7% – What’s Next?

LexinFintech Holdings Ltd. Sponsored ADR (NASDAQ:LX)’s stock price dropped 7.7% on Tuesday . The company traded as low as $4.19 and last traded at $4.2990. Approximately 2,034,272 shares were traded during trading, a decline of 43% from the average daily volume of 3,567,265 shares. The stock had previously closed at $4.66.

Wall Street Analysts Forecast Growth

LX has been the subject of a number of research reports. Wall Street Zen upgraded shares of LexinFintech from a “hold” rating to a “buy” rating in a research report on Saturday, September 20th. Weiss Ratings restated a “hold (c+)” rating on shares of LexinFintech in a research report on Wednesday, October 8th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.60.

LexinFintech Trading Down 7.4%

The firm has a market cap of $726.04 million, a PE ratio of 3.37 and a beta of 0.51. The company has a quick ratio of 1.88, a current ratio of 1.89 and a debt-to-equity ratio of 0.11. The company’s 50 day moving average price is $5.47 and its two-hundred day moving average price is $6.65.

LexinFintech (NASDAQ:LX) last announced its earnings results on Thursday, August 7th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.20. LexinFintech had a net margin of 11.50% and a return on equity of 14.67%. The business had revenue of $500.62 million for the quarter, compared to the consensus estimate of $500.62 million.

LexinFintech Increases Dividend

The business also recently declared a semi-annual dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, August 26th were paid a $0.194 dividend. The ex-dividend date of this dividend was Tuesday, August 26th. This represents a yield of 440.0%. This is a boost from LexinFintech’s previous semi-annual dividend of $0.11. LexinFintech’s payout ratio is 24.41%.

LexinFintech declared that its board has approved a stock buyback program on Monday, July 21st that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in LX. Vanguard Group Inc. purchased a new position in LexinFintech in the 1st quarter worth about $44,048,000. Alliancebernstein L.P. grew its holdings in LexinFintech by 1,862.9% during the 1st quarter. Alliancebernstein L.P. now owns 3,715,319 shares of the company’s stock worth $37,488,000 after acquiring an additional 3,526,039 shares in the last quarter. Man Group plc grew its holdings in LexinFintech by 207.0% during the 2nd quarter. Man Group plc now owns 3,419,971 shares of the company’s stock worth $24,658,000 after acquiring an additional 2,306,088 shares in the last quarter. BRIGHT VALLEY CAPITAL Ltd grew its holdings in LexinFintech by 33.0% during the 1st quarter. BRIGHT VALLEY CAPITAL Ltd now owns 5,305,208 shares of the company’s stock worth $53,530,000 after acquiring an additional 1,315,208 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in LexinFintech by 201.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,482,060 shares of the company’s stock worth $14,954,000 after acquiring an additional 991,075 shares in the last quarter.

About LexinFintech

LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending.