Luckin Coffee (OTCMKTS:LKNCY) Stock Price Down 7.8% – Should You Sell?

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY) shares fell 7.8% during trading on Tuesday . The stock traded as low as $31.65 and last traded at $31.80. 1,686,827 shares changed hands during trading, a decline of 23% from the average session volume of 2,189,006 shares. The stock had previously closed at $34.50.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on LKNCY shares. Macquarie set a $52.00 target price on Luckin Coffee in a research note on Friday, September 5th. Zacks Research upgraded Luckin Coffee to a “hold” rating in a research report on Thursday, November 20th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Luckin Coffee presently has an average rating of “Moderate Buy” and an average price target of $52.00.

Luckin Coffee Price Performance

The business’s 50-day simple moving average is $38.38 and its two-hundred day simple moving average is $37.62. The stock has a market cap of $9.02 billion, a price-to-earnings ratio of 18.07 and a beta of -0.28.

Luckin Coffee (OTCMKTS:LKNCY) last announced its quarterly earnings results on Monday, November 17th. The company reported $0.64 EPS for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.01). Luckin Coffee had a net margin of 8.45% and a return on equity of 33.69%. The firm had revenue of $2.15 billion during the quarter, compared to the consensus estimate of $1.94 billion.

Luckin Coffee Company Profile

Luckin Coffee Inc offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks.